Valero Energy (NYSE:VLO) Reaches New 12-Month High After Analyst Upgrade

Valero Energy Corporation (NYSE:VLO)’s share price hit a new 52-week high during trading on Monday after Barclays raised their price target on the stock from $323.00 to $441.00. Barclays currently has an overweight rating on the stock. Valero Energy traded as high as $419.45 and last traded at $419.2580, with a volume of 1095176 shares traded. The stock had previously closed at $406.30.

Several other equities analysts have also recently issued reports on VLO. The Goldman Sachs Group lifted their price objective on Valero Energy from $365.00 to $457.00 and gave the stock a “buy” rating in a report on Wednesday, September 23rd. Raymond James Financial upped their target price on shares of Valero Energy from $350.00 to $450.00 and gave the company a “strong-buy” rating in a report on Monday, September 14th. Morgan Stanley raised their price target on shares of Valero Energy from $255.00 to $411.00 and gave the stock an “equal weight” rating in a research note on Monday, September 14th. Bank of America lifted their price target on shares of Valero Energy from $395.00 to $414.00 and gave the stock a “neutral” rating in a report on Friday, October 2nd. Finally, Zacks Research raised shares of Valero Energy from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 4th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $357.25.

Key Valero Energy News

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

• Positive Sentiment: Barclays raised its price target on VLO from $323 to $441 and reiterated an “overweight” rating. The new target implies additional upside from recently reported trading levels and represents the most direct positive catalyst in the latest coverage. Valero Energy Stock Price Expected to Rise, Barclays Analyst Says
• Positive Sentiment: Refining and fuel-market developments have supported VLO and peers. The Trump administration’s temporary authorization for highway use of dyed diesel and deferral of the federal fuel tax helped lift refinery and fuel-distribution stocks overnight, as the measures could improve fuel availability and reduce near-term costs. VLO, MPC, SUN, PSX Stocks Climb Overnight
• Positive Sentiment: Momentum and earnings expectations remain favorable. Zacks highlighted VLO as a momentum candidate and identified it among energy stocks with potential to exceed quarterly estimates. Analysts expect third-quarter EPS growth of more than 100% year over year, building on the company’s previous earnings beat and strong revenue growth. What to Expect From Valero Energy’s Next Quarterly Earnings Report
• Neutral Sentiment: VLO’s technical trend is strong, but the stock is increasingly priced for good news. Fresh-high coverage and favorable fundamental screens support investor interest, while the stock’s sharp advance and elevated price-to-earnings valuation may limit further gains unless earnings and refining margins continue to outperform. Valero Energy Corporation Hits Fresh High
• Negative Sentiment: The coordinated G7 release of up to 100 million barrels of emergency oil and diesel stocks could pressure diesel prices and refining margins. If the additional supply reduces fuel-price spikes, it may weigh on the near-term profitability tailwind currently benefiting refiners such as VLO. G7 Releases 100 Million Barrels as Diesel Tops $6 a Gallon

Hedge Funds Weigh In On Valero Energy

A number of large investors have recently bought and sold shares of the stock. Bank of America Corp DE purchased a new stake in Valero Energy during the 2nd quarter worth $1,195,943,000. Pacer Advisors Inc. raised its position in Valero Energy by 2,635.7% in the fourth quarter. Pacer Advisors Inc. now owns 950,527 shares of the oil and gas company’s stock valued at $154,736,000 after purchasing an additional 915,782 shares during the period. Amundi raised its position in Valero Energy by 45.3% in the first quarter. Amundi now owns 2,584,976 shares of the oil and gas company’s stock valued at $638,695,000 after purchasing an additional 806,018 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in shares of Valero Energy by 48.5% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,400,162 shares of the oil and gas company’s stock worth $390,722,000 after purchasing an additional 783,581 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Valero Energy by 33.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,058,341 shares of the oil and gas company’s stock worth $536,074,000 after purchasing an additional 520,642 shares in the last quarter. Hedge funds and other institutional investors own 78.69% of the company’s stock.

Valero Energy Price Performance

The company has a 50-day moving average price of $361.23 and a two-hundred day moving average price of $292.85. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. The company has a market cap of $120.83 billion, a PE ratio of 17.41, a P/E/G ratio of 0.28 and a beta of 0.59.

Valero Energy (NYSE:VLO) last announced its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 EPS for the quarter, beating the consensus estimate of $10.11 by $2.43. The business had revenue of $44.48 billion for 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 company’s revenue was up 48.8% on a year-over-year basis. During the same period last year, the business posted $2.28 EPS. Sell-side analysts expect that Valero Energy Corporation will post 49.71 earnings per share for the current fiscal year.

Valero Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Friday, July 31st were issued a dividend of $1.20 per share. This represents a $4.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, July 31st. Valero Energy’s dividend payout ratio (DPR) is currently 19.92%.

Valero Energy Company Profile

Valero Energy Corporation is an international petroleum refining, renewable fuels and marketing company headquartered in San Antonio, Texas. Founded in 1980, the company processes crude oil and other feedstocks into transportation fuels and other products used by commercial, industrial and consumer customers.

Valero’s refined products include gasoline, diesel, jet fuel, asphalt, lubricants and petrochemical feedstocks. The company also produces and markets ethanol and renewable diesel, including through its Diamond Green Diesel joint venture with Darling Ingredients.