Valero Energy (NYSE:VLO) Stock Price Down 2.4% – Should You Sell?

Valero Energy Corporation (NYSE:VLO) shares dropped 2.4% during mid-day trading on Thursday. The company traded as low as $416.41 and last traded at $426.0640. 2,798,807 shares changed hands during trading, a decline of 15% from the average daily volume of 3,300,080 shares. The stock had previously closed at $436.75.

More Valero Energy News

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

• Positive Sentiment: Record quarterly profitability: Valero reported net income of approximately $6.8 billion, or $23.89 per share, compared with $1.1 billion, or $3.53 per share, a year earlier. Adjusted EPS of $23.90 exceeded consensus estimates near $21.17-$21.28, while revenue of $46.10 billion also surpassed expectations. Valero Energy Reports Third Quarter 2026 Results
• Positive Sentiment: Refining strength drove the beat: Higher refining margins, tight inventories and strong operating performance supported the earnings surge. Renewable diesel and ethanol profitability also improved, with ethanol production reaching a record level. Valero kicks off refiner results with record quarterly profit on higher margins
• Positive Sentiment: Cash generation and strategic progress: Robust cash flow and the completion of a key refining upgrade strengthen Valero’s operating position and could support shareholder returns if favorable refining conditions persist. Valero Energy Posts Surging Q3 Profit and Completes Key Refining Upgrade
• Neutral Sentiment: Results are highly cyclical: The exceptional year-over-year improvement reflects refining margins that can change rapidly with fuel demand, crude costs, inventories and geopolitical conditions. Investors will focus on whether current margins remain elevated.
• Negative Sentiment: Valuation and analyst caution may be limiting the reaction: TD Cowen raised its price target from $375 to $400 but maintained a “hold” rating; the target remains below the stock’s recent trading level. After a sharp run-up toward its yearly high, investors may be locking in gains despite the earnings beat. TD Cowen raises Valero price target

Wall Street Analysts Forecast Growth

Several research analysts recently commented on VLO shares. Jefferies Financial Group reduced their price target on shares of Valero Energy from $401.00 to $394.00 and set a “hold” rating on the stock in a research note on Thursday, October 8th. Erste Group Bank cut shares of Valero Energy from a “buy” rating to a “hold” rating in a research report on Thursday, August 27th. Bank of America upped their target price on shares of Valero Energy from $395.00 to $414.00 and gave the stock a “neutral” rating in a research note on Friday, October 2nd. Citigroup raised their target price on shares of Valero Energy from $302.00 to $485.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 13th. Finally, Morgan Stanley lifted their price target on shares of Valero Energy from $255.00 to $411.00 and gave the company an “equal weight” rating in a research note on Monday, September 14th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Valero Energy presently has an average rating of “Moderate Buy” and a consensus target price of $385.75.

Valero Energy Stock Performance

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 firm has a 50 day moving average price of $391.47 and a 200 day moving average price of $309.38. The stock has a market cap of $122.68 billion, a PE ratio of 17.68, a price-to-earnings-growth ratio of 0.27 and a beta of 0.59.

Valero Energy (NYSE:VLO) last released its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share for the quarter, topping analysts’ consensus estimates of $21.17 by $2.73. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The company had revenue of $46.10 billion during the quarter, compared to analyst estimates of $42.71 billion. During the same period in the prior year, the firm earned $3.66 earnings per share. The firm’s revenue for the quarter was up 43.3% compared to the same quarter last year. As a group, research analysts forecast that Valero Energy Corporation will post 52.55 earnings per share for the current year.

Hedge Funds Weigh In On Valero Energy

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Moore Capital Management LP purchased a new stake in Valero Energy during the second quarter worth $13,193,000. Fort Washington Investment Advisors Inc. OH boosted its position in Valero Energy by 4.2% during the 1st quarter. Fort Washington Investment Advisors Inc. OH now owns 192,430 shares of the oil and gas company’s stock valued at $47,546,000 after acquiring an additional 7,702 shares in the last quarter. QRG Capital Management Inc. increased its holdings in shares of Valero Energy by 5.5% in the 2nd quarter. QRG Capital Management Inc. now owns 58,558 shares of the oil and gas company’s stock valued at $15,251,000 after acquiring an additional 3,037 shares during the period. TrueMark Investments LLC purchased a new position in shares of Valero Energy in the 1st quarter valued at $8,921,000. Finally, Jennison Associates LLC increased its holdings in shares of Valero Energy by 377.1% in the 1st quarter. Jennison Associates LLC now owns 413,437 shares of the oil and gas company’s stock valued at $102,152,000 after acquiring an additional 326,777 shares during the period. 78.69% of the stock is currently owned by institutional investors.

About Valero Energy

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company’s primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.