UBS Group Forecasts Strong Price Appreciation for Valero Energy (NYSE:VLO) Stock

Valero Energy (NYSE:VLO) had its price target increased by investment analysts at UBS Group from $280.00 to $355.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the oil and gas company’s stock. UBS Group’s price objective would suggest a potential upside of 13.46% from the stock’s previous close.

A number of other equities analysts also recently weighed in on VLO. Mizuho upped their price target on shares of Valero Energy from $222.00 to $289.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 27th. The Goldman Sachs Group lifted their price objective on Valero Energy from $286.00 to $357.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Wells Fargo & Company boosted their target price on Valero Energy from $292.00 to $356.00 and gave the company an “overweight” rating in a research note on Friday. Raymond James Financial raised their price target on Valero Energy from $300.00 to $340.00 and gave the stock a “strong-buy” rating in a research note on Monday, July 13th. Finally, Barclays increased their price objective on Valero Energy from $279.00 to $323.00 and gave the stock an “overweight” rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $277.47.

Valero Energy Stock Up 0.4%

VLO traded up $1.18 on Friday, reaching $312.89. 2,431,025 shares of the company traded hands, compared to its average volume of 3,424,155. The company has a market cap of $92.91 billion, a price-to-earnings ratio of 22.74, a PEG ratio of 0.19 and a beta of 0.55. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.15. The stock’s 50 day moving average price is $269.31 and its 200-day moving average price is $238.16. Valero Energy has a 52-week low of $130.78 and a 52-week high of $320.24.

Valero Energy (NYSE:VLO) last released its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $10.13 by $2.41. The company had revenue of $44.48 billion during the quarter, compared to the consensus estimate of $39.47 billion. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. The company’s revenue was up 48.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.28 EPS. On average, sell-side analysts expect that Valero Energy will post 36.64 EPS for the current fiscal year.

Insiders Place Their Bets

In other Valero Energy 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 completion of the sale, the senior vice president 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 the SEC website. Company insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On Valero Energy

A number of institutional investors have recently modified their holdings of the company. State Street Corp lifted its stake in shares of Valero Energy by 0.9% in 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 buying an additional 163,975 shares during the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Valero Energy by 0.5% in the fourth 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 during the period. Norges Bank bought a new position in shares of Valero Energy in the fourth quarter worth about $1,111,542,000. Franklin Resources Inc. lifted its position in shares of Valero Energy by 7.5% during the 4th quarter. Franklin Resources Inc. now owns 5,668,210 shares of the oil and gas company’s stock worth $922,728,000 after purchasing an additional 394,693 shares during the last quarter. Finally, Bank of America Corp DE lifted its position in shares of Valero Energy by 11.4% during the 1st quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company’s stock worth $1,243,630,000 after purchasing an additional 516,975 shares during the last quarter. Institutional investors own 78.69% of the company’s stock.

More Valero Energy News

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

• Positive Sentiment: Record earnings significantly exceeded expectations. Valero reported second-quarter net income of $3.7 billion, or $12.62 per share, versus $714 million, or $2.28 per share, a year earlier. Adjusted EPS of $12.54 surpassed consensus estimates near $9.87-$10.13, while revenue rose 48.8% to $44.48 billion. Valero Energy beats quarterly profit estimates on higher refining margins
• Positive Sentiment: Refining conditions were particularly favorable. Higher refining margins, sturdy fuel demand and increased U.S. fuel exports—partly supported by heightened Middle East tensions—boosted profitability. Lower-cost Venezuelan feedstocks also aided results. Valero posts highest-ever Q2 profit
• Positive Sentiment: Renewables and capital discipline added support. Gains in renewable diesel and ethanol contributed to stronger profits and cash flow, while management emphasized disciplined capital allocation and ongoing shareholder returns. VLO Q2 Earnings Call Highlights Refining Strength
• Positive Sentiment: Analysts raised their outlooks. Wells Fargo increased its price target from $292 to $356 and retained an “overweight” rating. Barclays lifted its target from $279 to $323 and also rated the stock “overweight,” reinforcing the positive reaction to the earnings report.
• Positive Sentiment: The dividend remains a key attraction. Valero reaffirmed its $1.20-per-share quarterly dividend, payable August 31 to shareholders of record July 31, supporting the investment case based on cash returns. Valero Energy Corp’s Dividend Analysis
• Neutral Sentiment: Valero’s strong quarter improves its value profile, but the stock’s rally leaves less upside to some analyst targets and increases sensitivity to future refining-margin normalization.
• Negative Sentiment: Management said tax-credit changes and registration hurdles have slowed biofuel imports, creating challenges for renewable-fuel compliance and potentially limiting near-term benefits in the company’s renewables business. Tax-credit overhaul slows biofuel imports

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.