Valero Energy (NYSE:VLO) Shares Down 9.4% – Here’s Why

Valero Energy Corporation (NYSE:VLO) shares traded down 9.4% during mid-day trading on Tuesday. The stock traded as low as $385.65 and last traded at $386.7750. 5,065,837 shares were traded during trading, an increase of 54% from the average daily volume of 3,295,015 shares. The stock had previously closed at $426.76.

More Valero Energy News

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

• Positive Sentiment: Zacks named Valero Energy (VLO) a top momentum and growth pick, citing strong earnings surprises, favorable estimate revisions and robust projected growth. Seagate and One Momentum Stock to Buy Now for Big Upside
• Positive Sentiment: VLO was also included in Zacks’ Rank #1 “Strong Buy” growth-stock list, reinforcing the view that improving earnings expectations could support the shares. Best Growth Stocks to Buy for October 27th
• Positive Sentiment: Recent commentary highlighted Valero’s earnings momentum, valuation and growth characteristics, while another analyst roundup indicated continued interest in the energy company. These factors may limit downside if refining conditions remain supportive. Is Valero Energy a Solid Growth Stock?
• Neutral Sentiment: Institutional positioning was mixed, with hundreds of funds adding shares while others reduced exposure. Recent insider activity showed sales but no purchases, a signal investors may monitor rather than a definitive change in fundamentals.
• Negative Sentiment: Traders are reassessing refining tailwinds as lower crude prices, possible Middle East diplomatic progress and increased Russian diesel production raise expectations that fuel-market tightness and refining margins could ease. After VLO’s substantial run, those concerns have increased profit-taking pressure. Valero Energy Shares Fall as Traders Reassess Refining Tailwinds
• Negative Sentiment: Freedom Broker downgraded Valero from Hold to Sell, adding to near-term caution. Michael Burry also indicated he was considering reducing or exiting VLO after its strong performance. Freedom Broker Downgrades Valero Energy

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on VLO shares. Weiss Ratings upgraded Valero Energy from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. Erste Group Bank downgraded Valero Energy from a “buy” rating to a “hold” rating in a report on Thursday, August 27th. Wells Fargo & Company upped their target price on Valero Energy from $485.00 to $489.00 and gave the company an “overweight” rating in a research report on Friday. Bank of America increased their price target on shares of Valero Energy from $395.00 to $414.00 and gave the stock a “neutral” rating in a report on Friday, October 2nd. Finally, Raymond James Financial raised their price target on shares of Valero Energy from $350.00 to $450.00 and gave the stock a “strong-buy” rating in a research report on Monday, September 14th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $379.94.

Valero Energy Price Performance

The firm has a 50-day simple moving average of $392.44 and a two-hundred day simple moving average of $279.72. The company has a market capitalization of $111.36 billion, a price-to-earnings ratio of 8.70, a P/E/G ratio of 0.24 and a beta of 0.59. The company has a current ratio of 1.64, a quick ratio of 1.23 and a debt-to-equity ratio of 0.37.

Valero Energy (NYSE:VLO) last issued its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $21.17 by $2.73. The business had revenue of $46.10 billion during the quarter, compared to analysts’ expectations of $42.71 billion. Valero Energy had a return on equity of 47.50% and a net margin of 8.44%. The company’s revenue for the quarter was up 43.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.66 EPS. As a group, analysts predict that Valero Energy Corporation will post 54.22 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of VLO. Generali Asset Management SPA SGR lifted its stake in shares of Valero Energy by 1.8% in the 3rd quarter. Generali Asset Management SPA SGR now owns 40,423 shares of the oil and gas company’s stock valued at $15,668,000 after purchasing an additional 734 shares during the period. Latitude Advisors LLC acquired a new stake in Valero Energy during the third quarter valued at $34,000. Balance Wealth Partners LLC acquired a new stake in Valero Energy during the third quarter valued at $32,000. SYM FINANCIAL Corp increased its holdings in Valero Energy by 4.6% in the third quarter. SYM FINANCIAL Corp now owns 2,788 shares of the oil and gas company’s stock valued at $1,081,000 after buying an additional 123 shares in the last quarter. Finally, Ashton Thomas Securities LLC purchased a new position in Valero Energy in the third quarter valued at $264,000. 78.69% of the stock is currently owned by hedge funds and other institutional investors.

About Valero Energy

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company’s primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.