Valero Energy Corporation (NYSE:VLO) Receives Consensus Rating of “Moderate Buy” from Brokerages

Valero Energy Corporation (NYSE:VLO) has been assigned an average recommendation of “Moderate Buy” from the twenty brokerages that are presently covering the firm, Marketbeat.com reports. Ten investment analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $193.20.

A number of analysts recently issued reports on the company. Wall Street Zen upgraded Valero Energy from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Argus raised shares of Valero Energy to a “hold” rating in a research note on Monday, February 2nd. UBS Group restated a “buy” rating on shares of Valero Energy in a report on Tuesday, January 6th. Citigroup lifted their price target on shares of Valero Energy from $190.00 to $212.00 and gave the stock a “neutral” rating in a research note on Monday, February 9th. Finally, Mizuho reiterated a “neutral” rating and set a $192.00 price target (up from $190.00) on shares of Valero Energy in a report on Friday, December 12th.

Valero Energy Trading Down 2.2%

Shares of NYSE VLO opened at $230.57 on Friday. Valero Energy has a 1-year low of $99.00 and a 1-year high of $240.27. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.64 and a quick ratio of 1.11. The business’s 50 day moving average is $197.83 and its two-hundred day moving average is $177.83. The stock has a market capitalization of $68.95 billion, a P/E ratio of 30.18, a PEG ratio of 1.18 and a beta of 0.70.

Valero Energy (NYSE:VLO) last announced its earnings results on Thursday, January 29th. The oil and gas company reported $3.82 EPS for the quarter, topping analysts’ consensus estimates of $3.27 by $0.55. The firm had revenue of $30.37 billion during the quarter, compared to analysts’ expectations of $28.20 billion. Valero Energy had a return on equity of 12.35% and a net margin of 1.91%.The company’s quarterly revenue was down 1.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.64 EPS. As a group, research analysts expect that Valero Energy will post 7.92 EPS for the current year.

Valero Energy Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 9th. Stockholders of record on Thursday, February 5th were paid a dividend of $1.20 per share. This is a positive change from Valero Energy’s previous quarterly dividend of $1.13. This represents a $4.80 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend was Thursday, February 5th. Valero Energy’s payout ratio is currently 62.83%.

Key Headlines Impacting Valero Energy

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

• Positive Sentiment: Goldman Sachs raised its price target to $237 and kept a Buy rating, offering a near-term catalyst and institutional endorsement that can support the share price. Read More.
• Positive Sentiment: Valero increased its quarterly dividend to $1.20 (annualized $4.80), which strengthens the income argument for the stock and can attract yield-focused buyers. Read More.
• Positive Sentiment: Notable institutional accumulation has been reported (several funds adding positions), signalling conviction from longer-term investors in a refining recovery. Read More.
• Neutral Sentiment: Analysts are revising fair-value assumptions (example fair value moved to ~$202.72), producing mixed calls — some firms lift targets, others trim them depending on refining/crude assumptions. This creates divergent analyst signals rather than a clear consensus catalyst. Read More.
• Neutral Sentiment: Several investor-attention and dividend-themed write-ups (Zacks/Yahoo) are increasing visibility; helpful for flows but not a direct fundamental change. Read More.
• Negative Sentiment: Insider selling: SVP Eric A. Fisher disclosed sizable sales this week (8,311 shares at ~ $227.69 and an additional 400 shares at ~$238.60). Large insider disposals can spook short-term sentiment even though he retains a substantial holding. Read More.
• Negative Sentiment: Policy risk: reports that the White House is considering a temporary Jones Act waiver to ease fuel shipping could, if enacted, lower domestic fuel prices and compress refiners’ margins — a material industry risk for Valero. Read More.

Insider Buying and Selling at Valero Energy

In related news, SVP Eric A. Fisher sold 400 shares of the firm’s stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $238.60, for a total transaction of $95,440.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.04% of the company’s stock.

Hedge Funds Weigh In On Valero Energy

Several hedge funds have recently bought and sold shares of VLO. Highline Wealth Partners LLC lifted its position in shares of Valero Energy by 70.2% during the third quarter. Highline Wealth Partners LLC now owns 160 shares of the oil and gas company’s stock worth $27,000 after purchasing an additional 66 shares during the last quarter. JPL Wealth Management LLC purchased a new stake in shares of Valero Energy during the third quarter valued at $27,000. Torren Management LLC bought a new position in shares of Valero Energy in the fourth quarter worth about $30,000. AXS Investments LLC purchased a new position in Valero Energy in the 4th quarter worth about $32,000. Finally, University of Texas Texas AM Investment Management Co. increased its stake in Valero Energy by 157.0% in the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 203 shares of the oil and gas company’s stock worth $33,000 after buying an additional 124 shares during the period. Institutional investors own 78.69% of the company’s stock.

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.