Valero Energy (NYSE:VLO) Cut to “Hold” at Zacks Research

Zacks Research cut shares of Valero Energy (NYSE:VLO) from a strong-buy rating to a hold rating in a research note published on Tuesday,Zacks.com reports.

A number of other research analysts have also commented on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Valero Energy in a research report on Wednesday, October 8th. Barclays raised their price target on Valero Energy from $169.00 to $184.00 and gave the company an “overweight” rating in a report on Monday, November 17th. Morgan Stanley cut Valero Energy from an “overweight” rating to an “equal weight” rating and boosted their price objective for the stock from $160.00 to $175.00 in a report on Friday, October 3rd. Bank of America reiterated a “neutral” rating and set a $195.00 price target (down previously from $198.00) on shares of Valero Energy in a research report on Thursday, December 11th. Finally, Wall Street Zen lowered shares of Valero Energy from a “buy” rating to a “hold” rating in a report on Saturday, January 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $183.00.

Valero Energy Stock Down 0.7%

Shares of VLO opened at $186.92 on Tuesday. Valero Energy has a 12 month low of $99.00 and a 12 month high of $193.33. The stock has a market cap of $57.01 billion, a price-to-earnings ratio of 39.02, a P/E/G ratio of 1.12 and a beta of 0.77. The company has a 50-day moving average price of $174.62 and a two-hundred day moving average price of $162.20. The company has a quick ratio of 1.09, a current ratio of 1.60 and a debt-to-equity ratio of 0.36.

Valero Energy (NYSE:VLO) last posted its earnings results on Thursday, October 23rd. The oil and gas company reported $3.66 earnings per share for the quarter, topping the consensus estimate of $3.15 by $0.51. Valero Energy had a net margin of 1.21% and a return on equity of 8.69%. The business had revenue of $32.17 billion for the quarter, compared to analyst estimates of $28.80 billion. During the same quarter in the prior year, the firm earned $1.14 EPS. The firm’s quarterly revenue was down 2.2% compared to the same quarter last year. Equities analysts predict that Valero Energy will post 7.92 EPS for the current fiscal year.

Valero Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Shareholders of record on Thursday, November 20th were paid a $1.13 dividend. This represents a $4.52 annualized dividend and a yield of 2.4%. The ex-dividend date was Thursday, November 20th. Valero Energy’s payout ratio is presently 94.36%.

Insider Buying and Selling at Valero Energy

In related news, CFO Jason W. Fraser sold 9,933 shares of Valero Energy stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $174.02, for a total value of $1,728,540.66. Following the sale, the chief financial officer owned 134,196 shares of the company’s stock, valued at approximately $23,352,787.92. The trade was a 6.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.04% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Charles Schwab Investment Management Inc. raised its stake in shares of Valero Energy by 2.5% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 11,724,707 shares of the oil and gas company’s stock worth $1,576,035,000 after purchasing an additional 286,942 shares in the last quarter. Geode Capital Management LLC lifted its stake in Valero Energy by 16.7% in the second quarter. Geode Capital Management LLC now owns 8,141,511 shares of the oil and gas company’s stock valued at $1,089,897,000 after acquiring an additional 1,164,217 shares during the last quarter. Norges Bank acquired a new position in shares of Valero Energy during the 2nd quarter worth about $827,390,000. Franklin Resources Inc. lifted its stake in Valero Energy by 5.0% in the 3rd quarter. Franklin Resources Inc. now owns 5,273,517 shares of the oil and gas company’s stock valued at $897,869,000 after purchasing an additional 249,195 shares during the last quarter. Finally, Barclays PLC grew its holdings in Valero Energy by 5.3% during the third quarter. Barclays PLC now owns 4,143,672 shares of the oil and gas company’s stock worth $705,502,000 after purchasing an additional 209,597 shares during the period. 78.69% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Valero Energy

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Board raises regular quarterly dividend from $1.13 to $1.20 (annualized $4.80), payable Mar 9, boosting yield and returning cash to shareholders — a clear shareholder-friendly move that tends to support the stock. Valero Energy Corporation Increases Regular Cash Dividend on Common Stock
• Positive Sentiment: Valero bought a Venezuelan crude cargo under Washington’s deal with Caracas — could provide discounted feedstock and near-term refining margin upside if crude comes in at favorable economics. This also signals access to additional crude sources for Gulf Coast operations. Exclusive: Valero buys Venezuelan oil cargo as part of Washington’s deal with Caracas
• Positive Sentiment: Analyst / market commentary highlights VLO as an oil/refining play (VanEck mention) and Zacks pieces note that softer crude prices can improve refining margins — both items can support expectations for stronger downstream profitability. VanEck spotlights SLB, HAL, BKR, PSX, and VLO as oil plays
• Positive Sentiment: Pre-earnings coverage: analysts expect earnings growth and a potential beat next week — if results and guidance come in above consensus this could lift the stock. Valero Energy (VLO) Earnings Expected to Grow: What to Know Ahead of Next Week’s Release
• Neutral Sentiment: Coverage pieces examine VLO’s S&P 500 role and longer-term positioning in refining scale — informative for strategic investors but unlikely to move the stock immediately. Valero Energy (NYSE:VLO) s&p 500 Index Role In Refining Scale
• Neutral Sentiment: Valuation pieces send mixed signals (P/E vs. DCF), leaving upside contingent on margins and earnings delivery rather than valuation rerating alone. A Look At Valero Energy (VLO) Valuation As P/E And DCF Send Mixed Signals
• Negative Sentiment: Zacks Research downgraded Valero from “strong-buy” to “hold,” which can increase short-term selling pressure or temper buy-side enthusiasm ahead of earnings. Zacks.com
• Negative Sentiment: Despite the positive headlines, the stock is trading lower today on lighter-than-average volume, suggesting investors are waiting for the upcoming earnings print and details on margins and guidance before adding positions.

About Valero Energy

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company’s operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.