Valero Energy (NYSE:VLO) Shares Down 1% – What’s Next?

Valero Energy Corporation (NYSE:VLO) traded down 1% during trading on Thursday. The stock traded as low as $377.45 and last traded at $384.5620. Approximately 3,339,998 shares were traded during trading, an increase of 1% from the average daily volume of 3,296,839 shares. The stock had previously closed at $388.48.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Valero’s strong quarter reportedly expanded its capacity for share repurchases, potentially supporting per-share value and signaling confidence in cash generation. The company recently reported record earnings, with EPS of $23.90 exceeding the $21.17 consensus and revenue of $46.10 billion surpassing estimates. Valero Energy stock: Buyback capacity expands after strong quarter
• Positive Sentiment: Zacks added VLO to its Rank #1 (Strong Buy) growth-stock list, citing its earnings momentum, growth outlook and recent operating performance. Best Growth Stocks to Buy for October 29th
• Positive Sentiment: Valero maintained its quarterly dividend at $1.20 per share, payable December 21 to shareholders of record November 24. The annualized payout is $4.80 per share, providing continued income support. Valero Energy Corporation Declares Regular Cash Dividend on Common Stock

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on VLO shares. Mizuho boosted their target price on shares of Valero Energy from $300.00 to $434.00 and gave the stock a “neutral” rating in a research report on Thursday, October 8th. Barclays raised their price objective on shares of Valero Energy from $441.00 to $443.00 and gave the stock an “overweight” rating in a report on Friday, October 23rd. Jefferies Financial Group decreased their target price on Valero Energy from $401.00 to $394.00 and set a “hold” rating for the company in a research report on Thursday, October 8th. UBS Group restated a “buy” rating and set a $467.00 price objective on shares of Valero Energy in a research note on Tuesday, October 6th. Finally, TD Cowen boosted their target price on shares of Valero Energy from $375.00 to $400.00 and gave the company a “hold” rating in a research note on Thursday, October 22nd. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Valero Energy has an average rating of “Moderate Buy” and a consensus price target of $379.94.

Valero Energy Stock Performance

The firm’s 50 day simple moving average is $395.69 and its 200-day simple moving average is $282.96. The company has a market capitalization of $110.73 billion, a price-to-earnings ratio of 8.65, a P/E/G ratio of 0.24 and a beta of 0.59. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.23 and a current ratio of 1.64.

Valero Energy (NYSE:VLO) last announced its earnings results on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $21.17 by $2.73. Valero Energy had a return on equity of 47.50% and a net margin of 8.44%. The firm had revenue of $46.10 billion during the quarter, compared to analysts’ expectations of $42.71 billion. During the same quarter in the prior year, the business earned $3.66 earnings per share. The company’s revenue was up 43.3% on a year-over-year basis. Analysts expect that Valero Energy Corporation will post 56.78 EPS for the current year.

Valero Energy Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 21st. Investors of record on Tuesday, November 24th will be issued a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, November 24th. Valero Energy’s payout ratio is currently 10.80%.

Institutional Trading of Valero Energy

Several institutional investors and hedge funds have recently made changes to their positions in VLO. Bank Julius Baer & Co. Ltd Zurich lifted its stake in Valero Energy by 12.5% during the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 3,396 shares of the oil and gas company’s stock worth $1,317,000 after purchasing an additional 376 shares during the last quarter. Virtue Capital Management LLC increased its holdings in shares of Valero Energy by 14.8% in the third quarter. Virtue Capital Management LLC now owns 1,058 shares of the oil and gas company’s stock valued at $410,000 after purchasing an additional 136 shares during the period. Nippon Life Global Investors Americas Inc. acquired a new position in shares of Valero Energy in the third quarter valued at approximately $919,000. Bell Investment Advisors Inc raised its stake in shares of Valero Energy by 190.7% during the third quarter. Bell Investment Advisors Inc now owns 375 shares of the oil and gas company’s stock worth $145,000 after purchasing an additional 246 shares during the last quarter. Finally, Verus Financial Partners Inc. purchased a new stake in shares of Valero Energy during the third quarter worth approximately $215,000. Institutional investors own 78.69% of the company’s stock.

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.