Valero Energy (NYSE:VLO) Given “Underperform” Rating at Wolfe Research

Wolfe Research reissued their underperform rating on shares of Valero Energy (NYSE:VLO) in a report released on Tuesday morning, Marketbeat reports. They currently have a $203.00 price objective on the oil and gas company’s stock.

A number of other equities research analysts also recently commented on the company. Wells Fargo & Company lifted their price objective on Valero Energy from $220.00 to $292.00 and gave the company an “overweight” rating in a research report on Tuesday, March 31st. Barclays lifted their price objective on Valero Energy from $184.00 to $261.00 and gave the company an “overweight” rating in a research report on Wednesday, April 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Valero Energy in a research report on Wednesday, January 21st. Zacks Research downgraded Valero Energy from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 20th. Finally, JPMorgan Chase & Co. lifted their price objective on Valero Energy from $197.00 to $200.00 and gave the company an “overweight” rating in a research report on Thursday, January 8th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $228.31.

Valero Energy Price Performance

Shares of NYSE:VLO opened at $233.73 on Tuesday. The company has a market cap of $69.89 billion, a P/E ratio of 30.59, a P/E/G ratio of 0.47 and a beta of 0.62. The company has a quick ratio of 1.11, a current ratio of 1.64 and a debt-to-equity ratio of 0.36. Valero Energy has a 52 week low of $109.83 and a 52 week high of $258.43. The business has a fifty day simple moving average of $226.49 and a 200-day simple moving average of $192.86.

Valero Energy (NYSE:VLO) last announced its quarterly earnings data on Thursday, January 29th. The oil and gas company reported $3.82 EPS for the quarter, beating analysts’ consensus estimates of $3.27 by $0.55. The business had revenue of $30.37 billion during the quarter, compared to the consensus estimate of $28.20 billion. Valero Energy had a return on equity of 12.35% and a net margin of 1.91%.The business’s revenue for the quarter was down 1.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.64 earnings per share. Equities research analysts forecast that Valero Energy will post 18.36 EPS for the current year.

Valero Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 9th. Shareholders of record on Thursday, February 5th were paid a dividend of $1.20 per share. This is a boost 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 was Thursday, February 5th. Valero Energy’s payout ratio is presently 62.83%.

Insider Activity at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 8,311 shares of the business’s stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $227.69, for a total transaction of $1,892,331.59. Following the transaction, the senior vice president owned 42,242 shares in the company, valued at $9,618,080.98. The trade was a 16.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.36% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of VLO. Highline Wealth Partners LLC lifted its stake 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 in the last quarter. JPL Wealth Management LLC acquired a new position in shares of Valero Energy during the third quarter worth about $27,000. Torren Management LLC acquired a new position in shares of Valero Energy during the fourth quarter worth about $30,000. AXS Investments LLC acquired a new position in shares of Valero Energy during the fourth quarter worth about $32,000. Finally, University of Texas Texas AM Investment Management Co. lifted its stake in shares of Valero Energy by 157.0% during the fourth 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 purchasing an additional 124 shares in the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.

Key Valero Energy News

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

• Positive Sentiment: Analyst / deep-dive bullish thesis — A Seeking Alpha note argues Valero can sustain elevated crack spreads, generate windfall profits and deliver ~14% returns via dividends and buybacks (price target ~$280), supporting upside expectations. Valero: Windfall Profits Lead To 14% Capital Returns
• Positive Sentiment: Fuel-demand / margin tailwind — A MarketBeat / The Motley Fool–linked story highlights a ~50% recent spike in diesel, naming refiners (including Valero) as direct beneficiaries as refining margins expand and renewables exposure provides optionality. Diesel Is Up 50% in Weeks. Here Are 2 Stocks Quietly Benefiting From the Spike.
• Positive Sentiment: Geopolitical oil supply shock — News that crude jumped amid U.S.–Iran developments has boosted refining stocks by pushing up input/wholesale prices and crack spreads, a near-term tailwind for Valero’s margins. Oil Prices Jump, S&P 500 Falls As U.S.-Iran Jabs Puts Ceasefire In Doubt
• Neutral Sentiment: Market commentary / sector positioning — A market wrap noted VLO outperformed while the broader market dipped, reflecting sector rotation into energy names. This is more descriptive of flow than a fundamental change. Valero Energy (VLO) Gains As Market Dips: What You Should Know
• Neutral Sentiment: Analyst/valuation discussion — Coverage pieces are re‑pricing VLO around geopolitical risk and recent volatility; a valuation overview notes recent pullbacks but strong YTD/1‑year returns, keeping investor debate active. A Look At Valero Energy (VLO) Valuation As Geopolitical Tensions And Analyst Support Shape Sector Expectations
• Negative Sentiment: Sell/underperform push from Wolfe Research — Wolfe revisited Valero, arguing current prices are “priced for peak margins” and issued a sell/underperform view with a ~$203 price target; other outlets echoed the reaffirmed underperform stance. This raises downside risk if margins normalize. Valero: Priced for Peak Margins and Unsustainable Cash Flows, Warranting a Sell Rating Benzinga note on Wolfe Research reaffirmation

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.