Valero Energy (NYSE:VLO) Hits New 12-Month High – Should You Buy?

Valero Energy Corporation (NYSE:VLO)’s stock price hit a new 52-week high on Monday . The company traded as high as $215.24 and last traded at $209.3650, with a volume of 863886 shares trading hands. The stock had previously closed at $204.64.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Argus raised shares of Valero Energy to a “hold” rating in a research note on Monday, February 2nd. Morgan Stanley upped their price objective on shares of Valero Energy from $175.00 to $180.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 27th. Citigroup lifted their target price on Valero Energy from $190.00 to $212.00 and gave the stock a “neutral” rating in a report on Monday, February 9th. JPMorgan Chase & Co. boosted their target price on Valero Energy from $197.00 to $200.00 and gave the company an “overweight” rating in a research note on Thursday, January 8th. Finally, Erste Group Bank began coverage on Valero Energy in a research report on Monday, November 10th. They set a “buy” rating on the stock. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $187.67.

Valero Energy Stock Performance

The stock has a fifty day moving average of $185.80 and a 200-day moving average of $172.22. The firm has a market capitalization of $64.89 billion, a P/E ratio of 27.92, a P/E/G ratio of 1.07 and a beta of 0.70. 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 (NYSE:VLO) last released its earnings results on Thursday, January 29th. The oil and gas company reported $3.82 EPS for the quarter, beating the consensus estimate of $3.27 by $0.55. Valero Energy had a return on equity of 12.35% and a net margin of 1.91%.Valero Energy’s revenue for the quarter was down 1.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.64 EPS. On average, research analysts anticipate that Valero Energy Corporation will post 7.92 EPS for the current year.

Valero Energy Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 9th. Investors of record on Thursday, February 5th will be given a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a yield of 2.3%. This is an increase from Valero Energy’s previous quarterly dividend of $1.13. The ex-dividend date of this dividend is Thursday, February 5th. Valero Energy’s payout ratio is 62.83%.

Hedge Funds Weigh In On Valero Energy

A number of large investors have recently modified their holdings of VLO. State Street Corp raised its holdings in Valero Energy by 0.9% during the fourth quarter. State Street Corp now owns 18,177,191 shares of the oil and gas company’s stock worth $2,959,065,000 after acquiring an additional 163,975 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of Valero Energy by 0.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 11,950,982 shares of the oil and gas company’s stock worth $1,945,500,000 after purchasing an additional 63,919 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Valero Energy by 16.7% in the 2nd quarter. Geode Capital Management LLC now owns 8,141,511 shares of the oil and gas company’s stock valued at $1,089,897,000 after buying an additional 1,164,217 shares during the last quarter. Norges Bank bought a new position in shares of Valero Energy in the fourth quarter valued at $1,111,542,000. Finally, Franklin Resources Inc. increased its holdings in Valero Energy by 7.5% during the fourth quarter. Franklin Resources Inc. now owns 5,668,210 shares of the oil and gas company’s stock worth $922,728,000 after buying an additional 394,693 shares during the last quarter. 78.69% of the stock is currently owned by institutional investors and hedge funds.

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.