Valero Energy (NYSE:VLO) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Valero Energy (NYSE:VLO) had its price objective increased by stock analysts at Wells Fargo & Company from $292.00 to $356.00 in a report released on Friday,Benzinga reports. The firm currently has an “overweight” rating on the oil and gas company’s stock. Wells Fargo & Company‘s price target would indicate a potential upside of 15.06% from the company’s previous close.

Several other research analysts have also recently weighed in on VLO. Raymond James Financial lifted their target price on Valero Energy from $300.00 to $340.00 and gave the stock a “strong-buy” rating in a report on Monday, July 13th. Mizuho upped their price target on shares of Valero Energy from $222.00 to $289.00 and gave the company a “neutral” rating in a report on Wednesday, May 27th. Zacks Research lowered shares of Valero Energy from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 22nd. The Goldman Sachs Group boosted their target price on shares of Valero Energy from $286.00 to $357.00 and gave the stock a “buy” rating in a report on Wednesday, July 22nd. Finally, Barclays raised their target price on shares of Valero Energy from $279.00 to $323.00 and gave the stock an “overweight” rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $273.06.

Valero Energy Price Performance

VLO traded down $2.30 during trading on Friday, reaching $309.41. The stock had a trading volume of 317,590 shares, compared to its average volume of 3,408,446. The stock has a 50 day moving average of $269.31 and a two-hundred day moving average of $238.16. The company has a quick ratio of 1.15, a current ratio of 1.58 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $91.87 billion, a price-to-earnings ratio of 22.47, a price-to-earnings-growth ratio of 0.19 and a beta of 0.55. Valero Energy has a 1-year low of $130.78 and a 1-year high of $320.24.

Valero Energy (NYSE:VLO) last issued its quarterly earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.13 by $2.41. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.The company had revenue of $44.48 billion for the quarter, compared to analysts’ expectations of $39.47 billion. During the same period last year, the firm earned $2.28 EPS. The firm’s revenue for the quarter was up 48.8% on a year-over-year basis. As a group, equities analysts anticipate that Valero Energy will post 36.64 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Eric A. Fisher sold 7,500 shares of the stock in a transaction dated 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 sale, the senior vice president directly owned 19,742 shares of the company’s stock, valued at approximately $5,294,212.14. This represents a 27.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On Valero Energy

A number of large investors have recently made changes to their positions in VLO. Norges Bank purchased a new stake in shares of Valero Energy in the fourth quarter worth approximately $1,111,542,000. Arrowstreet Capital Limited Partnership purchased a new position in Valero Energy during the third quarter valued at approximately $275,239,000. Pacer Advisors Inc. grew its holdings in shares of Valero Energy by 2,635.7% during the 4th quarter. Pacer Advisors Inc. now owns 950,527 shares of the oil and gas company’s stock valued at $154,736,000 after acquiring an additional 915,782 shares in the last quarter. Amundi increased its position in Valero Energy by 45.3% in the 1st quarter. Amundi now owns 2,584,976 shares of the oil and gas company’s stock worth $638,695,000 after purchasing an additional 806,018 shares during the last quarter. Finally, Victory Capital Management Inc. increased its position in Valero Energy by 49.3% in the 4th quarter. Victory Capital Management Inc. now owns 1,696,811 shares of the oil and gas company’s stock worth $276,224,000 after purchasing an additional 560,116 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.

Valero Energy News Roundup

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

• Positive Sentiment: Record earnings beat expectations. Valero reported second-quarter net income of $3.7 billion, or $12.62 per share, compared with $714 million, or $2.28 per share, a year earlier. Adjusted EPS of $12.54 exceeded analyst estimates of approximately $10.13, while revenue rose 48.8% year over year to $44.48 billion versus the $39.47 billion consensus. Valero Energy beats quarterly profit estimates on higher refining margins
• Positive Sentiment: Refining and renewable-fuels performance drove the surge. Higher refining margins, strong fuel demand and exports, plus gains in renewable diesel and ethanol, lifted profits and cash flow. Lower-cost Venezuelan feedstocks were also cited as benefiting results. Valero jumps after posting highest-ever Q2 profit
• Positive Sentiment: Barclays raised its outlook. Barclays lifted its price target from $279 to $323 and upgraded or reaffirmed an “overweight” rating, implying additional upside from the referenced market price. Barclays raises Valero price target
• Positive Sentiment: Shareholder returns remain supportive. Valero declared a $1.20-per-share cash dividend payable August 31 to shareholders of record as of July 31, underscoring its commitment to returning cash while earnings are strong. Valero Energy dividend analysis
• Neutral Sentiment: Management said regulatory changes and registration hurdles have slowed biofuel imports, potentially complicating compliance with renewable-fuel blending mandates. Valero discusses slower biofuel imports
• Negative Sentiment: At a valuation near recent highs, some commentary warns that refining profits are cyclical and the stock may already reflect peak-cycle earnings, leaving less margin for disappointment if margins normalize.

Valero Energy Company Profile

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.