Valero Energy (NYSE:VLO) Shares Gap Up – Still a Buy?

Shares of Valero Energy Corporation (NYSE:VLO) gapped up before the market opened on Monday . The stock had previously closed at $165.31, but opened at $179.69. Valero Energy shares last traded at $182.9790, with a volume of 2,833,760 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on VLO shares. Jefferies Financial Group lifted their price objective on Valero Energy from $181.00 to $194.00 and gave the stock a “buy” rating in a report on Friday, October 10th. Piper Sandler lifted their price target on shares of Valero Energy from $201.00 to $223.00 and gave the company an “overweight” rating in a research report on Friday, November 14th. TD Cowen raised their price objective on Valero Energy from $162.00 to $165.00 and gave the stock a “hold” rating in a research report on Friday, October 24th. Morgan Stanley lowered shares of Valero Energy from an “overweight” rating to an “equal weight” rating and upped their target price for the stock from $160.00 to $175.00 in a report on Friday, October 3rd. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Valero Energy in a research report on Wednesday, October 8th. Three investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $183.20.

Valero Energy Price Performance

The firm has a market cap of $55.44 billion, a P/E ratio of 37.95, a PEG ratio of 0.94 and a beta of 0.77. The company has a current ratio of 1.60, a quick ratio of 1.09 and a debt-to-equity ratio of 0.36. The business’s fifty day simple moving average is $171.66 and its 200-day simple moving average is $158.04.

Valero Energy (NYSE:VLO) last issued its earnings results on Thursday, October 23rd. The oil and gas company reported $3.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.15 by $0.51. The company had revenue of $32.17 billion for the quarter, compared to analysts’ expectations of $28.80 billion. Valero Energy had a net margin of 1.21% and a return on equity of 8.69%. The firm’s quarterly revenue was down 2.2% on a year-over-year basis. During the same quarter last year, the company posted $1.14 earnings per share. As a group, analysts forecast that Valero Energy Corporation will post 7.92 EPS for the current fiscal year.

Valero Energy Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Thursday, November 20th were paid a dividend of $1.13 per share. The ex-dividend date was Thursday, November 20th. This represents a $4.52 dividend on an annualized basis and a dividend yield of 2.5%. Valero Energy’s payout ratio is presently 94.36%.

Insider Buying and Selling at Valero Energy

In related news, CFO Jason W. Fraser sold 9,933 shares of the business’s stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $174.02, for a total value of $1,728,540.66. Following the sale, the chief financial officer directly owned 134,196 shares in the company, valued at $23,352,787.92. The trade was a 6.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.04% of the company’s stock.

Institutional Investors Weigh In On Valero Energy

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hoey Investments Inc. purchased a new position in Valero Energy in the 2nd quarter valued at about $26,000. GFG Capital LLC acquired a new position in Valero Energy in the second quarter valued at approximately $27,000. Highline Wealth Partners LLC increased its position in Valero Energy by 70.2% in the third quarter. Highline Wealth Partners LLC now owns 160 shares of the oil and gas company’s stock worth $27,000 after buying an additional 66 shares during the period. JPL Wealth Management LLC acquired a new position in shares of Valero Energy during the third quarter worth approximately $27,000. Finally, Hantz Financial Services Inc. grew its position in Valero Energy by 1,277.8% in the 2nd quarter. Hantz Financial Services Inc. now owns 248 shares of the oil and gas company’s stock valued at $33,000 after buying an additional 230 shares in 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.