Traders Buy High Volume of Put Options on Valero Energy (NYSE:VLO)

Valero Energy Corporation (NYSE:VLO) was the target of unusually large options trading on Thursday. Traders purchased 11,077 put options on the stock. This represents an increase of approximately 31% compared to the typical daily volume of 8,480 put options.

Valero Energy News Summary

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

• Positive Sentiment: Valero declared a regular quarterly cash dividend of $1.20 per share, reinforcing its shareholder-return profile and signaling confidence in cash generation. Valero Energy Corporation Declares Regular Cash Dividend on Common Stock
• Positive Sentiment: Analyst-related coverage suggested Valero could run higher on rising earnings estimates, which typically supports the stock by pointing to improving profit expectations. Can Valero Energy (VLO) Run Higher on Rising Earnings Estimates?
• Positive Sentiment: Multiple reports said VLO hit a new 52-week high after an analyst upgrade, suggesting Wall Street sentiment has turned more constructive and helped extend the stock’s recent strength. Valero Energy (NYSE:VLO) Sets New 12-Month High Following Analyst Upgrade
• Neutral Sentiment: There was also unusual options activity, with traders buying more put options than normal, which may indicate hedging or caution, but does not by itself explain a major fundamental shift.
• Neutral Sentiment: Broader refining-margin commentary for the sector was supportive overall, but it was focused on Marathon Petroleum rather than Valero specifically.

Insider Activity at Valero Energy

In related news, SVP Eric A. Fisher sold 7,500 shares of the company’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $268.17, for a total value of $2,011,275.00. Following the completion of the transaction, the senior vice president directly owned 19,742 shares in the company, valued at approximately $5,294,212.14. This represents a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.36% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Valero Energy

Several institutional investors have recently bought and sold shares of the business. Whipplewood Advisors LLC lifted its holdings in shares of Valero Energy by 3,400.0% during the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company’s stock valued at $26,000 after acquiring an additional 102 shares in the last quarter. Financial Life Planners acquired a new stake in Valero Energy in the 1st quarter valued at $28,000. Valued Wealth Advisors LLC increased its holdings in Valero Energy by 134.0% in the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company’s stock valued at $29,000 after purchasing an additional 67 shares in the last quarter. Global Assets Advisory LLC purchased a new position in Valero Energy in the first quarter valued at about $33,000. Finally, JPL Wealth Management LLC purchased a new position in Valero Energy in the third quarter valued at about $27,000. 78.69% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have issued reports on VLO shares. Wells Fargo & Company raised their price target on Valero Energy from $220.00 to $292.00 and gave the stock an “overweight” rating in a research note on Tuesday, March 31st. Wolfe Research reaffirmed an “underperform” rating and set a $203.00 price objective on shares of Valero Energy in a research note on Tuesday, April 21st. Citigroup increased their price objective on shares of Valero Energy from $259.00 to $302.00 and gave the stock a “neutral” rating in a report on Tuesday. Morgan Stanley raised their target price on shares of Valero Energy from $232.00 to $255.00 and gave the stock an “equal weight” rating in a research report on Friday, June 12th. Finally, UBS Group restated a “buy” rating and issued a $280.00 target price on shares of Valero Energy in a report on Thursday, June 11th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Valero Energy currently has a consensus rating of “Moderate Buy” and a consensus price target of $253.06.

Valero Energy Stock Performance

Valero Energy stock opened at $300.48 on Friday. The stock’s 50-day moving average is $257.59 and its 200-day moving average is $228.76. The company has a market cap of $89.22 billion, a price-to-earnings ratio of 21.84, a price-to-earnings-growth ratio of 0.36 and a beta of 0.55. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.15. Valero Energy has a 12 month low of $130.78 and a 12 month high of $303.64.

Valero Energy (NYSE:VLO) last released its quarterly earnings data on Thursday, April 30th. The oil and gas company reported $4.22 earnings per share for the quarter, beating the consensus estimate of $3.16 by $1.06. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.The business had revenue of $32.38 billion for the quarter, compared to analyst estimates of $31.38 billion. During the same period in the previous year, the company posted $0.89 EPS. The company’s revenue was up 7.0% compared to the same quarter last year. Equities analysts anticipate that Valero Energy will post 32.04 earnings per share for the current year.

Valero Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Thursday, May 21st were given a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend was Thursday, May 21st. Valero Energy’s payout ratio is 34.88%.

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.