Valero Energy (NYSE:VLO) Reaches New 52-Week High – Time to Buy?

Shares of Valero Energy Corporation (NYSE:VLO) reached a new 52-week high on Monday . The stock traded as high as $353.00 and last traded at $347.9010, with a volume of 238231 shares traded. The stock had previously closed at $348.86.

Key Valero Energy News

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

• Positive Sentiment: Wall Street analysts collectively rate VLO a Buy. While the article cautions that brokerage recommendations can be overly optimistic, the favorable consensus may continue to support investor demand. Wall Street Analysts See Valero Energy as a Buy
• Positive Sentiment: Valero was included in Zacks’ list of Rank #1, or Strong Buy, growth stocks. Its growth, value and momentum characteristics are being highlighted as reasons for long-term investor interest. Best Growth Stocks to Buy
• Positive Sentiment: In a comparison with Marathon Petroleum, Valero receives the edge because of its stronger balance sheet and share-price momentum, despite Marathon offering a cheaper valuation. This reinforces VLO’s positioning among large refiners. Marathon Versus Valero
• Positive Sentiment: Valero is also identified as a relatively low-beta stock, potentially appealing to investors seeking refining exposure with less market volatility. Low-Beta Stocks
• Neutral Sentiment: An article discusses whether Valero, along with other refiners, could afford to acquire Delek US Holdings. No transaction was announced, so the potential deal is not an immediate catalyst. Could Valero Afford Delek US Holdings
• Negative Sentiment: Valero shares have risen sharply—about 14% over the past month, 43% over three months and more than 100% year to date—while recently easing slightly. Analysts examining fair value suggest the stock may be fully valued or trading above intrinsic value, increasing the risk of profit-taking. Is Valero Fully Valued

Analyst Upgrades and Downgrades

Several equities research analysts have commented on VLO shares. Citigroup boosted their price target on shares of Valero Energy from $259.00 to $302.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 14th. Morgan Stanley upped their price objective on shares of Valero Energy from $232.00 to $255.00 and gave the company an “equal weight” rating in a report on Friday, June 12th. Piper Sandler reiterated an “overweight” rating and set a $329.00 target price on shares of Valero Energy in a research note on Thursday, July 23rd. Wells Fargo & Company raised their price target on shares of Valero Energy from $292.00 to $356.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Finally, Barclays lifted their price objective on Valero Energy from $279.00 to $323.00 and gave the company an “overweight” rating in a report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Valero Energy presently has a consensus rating of “Moderate Buy” and an average target price of $288.00.

Valero Energy Price Performance

The firm has a market cap of $98.07 billion, a P/E ratio of 14.13, a P/E/G ratio of 0.23 and a beta of 0.55. The company has a quick ratio of 1.23, a current ratio of 1.64 and a debt-to-equity ratio of 0.37. The business’s 50 day moving average is $296.84 and its two-hundred day moving average is $256.30.

Valero Energy (NYSE:VLO) last issued its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, topping analysts’ consensus estimates of $10.11 by $2.43. The business had revenue of $44.48 billion during the quarter, compared to the consensus estimate of $39.47 billion. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The firm’s revenue for the quarter was up 48.8% on a year-over-year basis. During the same period in the previous year, the company posted $2.28 earnings per share. As a group, analysts anticipate that Valero Energy Corporation will post 40.62 earnings per share for the current year.

Valero Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, July 31st will be paid a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Friday, July 31st. Valero Energy’s dividend payout ratio (DPR) is 19.92%.

Insider Activity at Valero Energy

In other news, SVP Eric A. Fisher sold 7,500 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the transaction, the senior vice president directly owned 19,742 shares of the company’s stock, valued at $5,294,212.14. This represents a 27.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.36% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Woodline Partners LP boosted its stake in Valero Energy by 40.7% during the 1st quarter. Woodline Partners LP now owns 26,747 shares of the oil and gas company’s stock valued at $3,532,000 after purchasing an additional 7,735 shares during the last quarter. Sivia Capital Partners LLC boosted its position in shares of Valero Energy by 13.0% during the second quarter. Sivia Capital Partners LLC now owns 1,929 shares of the oil and gas company’s stock valued at $259,000 after buying an additional 222 shares during the last quarter. Gamco Investors INC. ET AL purchased a new stake in Valero Energy in the 2nd quarter valued at $528,000. Sei Investments Co. lifted its stake in Valero Energy by 11.3% during the 2nd quarter. Sei Investments Co. now owns 269,043 shares of the oil and gas company’s stock valued at $36,165,000 after acquiring an additional 27,291 shares in the last quarter. Finally, Treasurer of the State of North Carolina boosted its holdings in Valero Energy by 0.9% during the 2nd quarter. Treasurer of the State of North Carolina now owns 145,810 shares of the oil and gas company’s stock worth $19,600,000 after acquiring an additional 1,338 shares during the last quarter. 78.69% of the stock is owned by institutional investors.

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.