Erste Group Bank Downgrades Valero Energy (NYSE:VLO) to Hold

Key Points

• Erste Group Bank downgraded Valero Energy from “buy” to “hold,” despite the broader analyst consensus remaining “Moderate Buy” with an average price target of $288.
• Valero’s shares traded at $343.61, near their 52-week high of $353, after a sharp rise; other analysts recently raised price targets as high as $357.
• The company reported strong quarterly results, with earnings of $12.54 per share versus the $10.11 consensus estimate and revenue of $44.48 billion, up 48.8% year over year.

Valero Energy (NYSE:VLO - Get Free Report) was downgraded by research analysts at Erste Group Bank from a "buy" rating to a "hold" rating in a report issued on Thursday, MarketBeat reports.

A number of other equities analysts also recently weighed in on VLO. Wells Fargo & Company upped their target price on Valero Energy from $292.00 to $356.00 and gave the company an "overweight" rating in a report on Friday, July 31st. Morgan Stanley upped their price target on shares of Valero Energy from $232.00 to $255.00 and gave the stock an "equal weight" rating in a research note on Friday, June 12th. UBS Group boosted their target price on Valero Energy from $280.00 to $355.00 and gave the company a "buy" rating in a research note on Friday, July 31st. The Goldman Sachs Group raised their price target on Valero Energy from $286.00 to $357.00 and gave the stock a "buy" rating in a research note on Wednesday, July 22nd. Finally, Zacks Research raised Valero Energy from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 4th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $288.00.

Valero Energy Price Performance

NYSE VLO traded down $4.42 during trading hours on Thursday, reaching $343.61. The company's stock had a trading volume of 465,646 shares, compared to its average volume of 3,305,896. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.23 and a current ratio of 1.64. The company's 50-day moving average is $299.01 and its two-hundred day moving average is $257.39. Valero Energy has a fifty-two week low of $149.52 and a fifty-two week high of $353.00. The stock has a market cap of $98.94 billion, a PE ratio of 14.28, a PEG ratio of 0.22 and a beta of 0.55.

Valero Energy (NYSE:VLO - Get Free Report) last issued its quarterly earnings data 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. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The business had revenue of $44.48 billion during the quarter, compared to analysts' expectations of $39.47 billion. During the same period last year, the company posted $2.28 EPS. The company's revenue was up 48.8% on a year-over-year basis. Analysts forecast that Valero Energy will post 40.62 EPS for the current year.

Insider Buying and Selling at Valero Energy

In related news, SVP Eric A. Fisher sold 7,500 shares of the company's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $268.17, for a total value of $2,011,275.00. Following the sale, the senior vice president owned 19,742 shares of the company's stock, valued at $5,294,212.14. The trade was a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.36% of the company's stock.

Institutional Investors Weigh In On Valero Energy

A number of institutional investors have recently added to or reduced their stakes in the stock. Whipplewood Advisors LLC boosted its stake in Valero Energy by 3,400.0% in the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock valued at $26,000 after buying an additional 102 shares in the last quarter. JPL Wealth Management LLC acquired a new stake in shares of Valero Energy in the 3rd quarter valued at $27,000. Financial Life Planners bought a new stake in shares of Valero Energy in the 1st quarter worth about $28,000. Valued Wealth Advisors LLC grew its holdings in shares of Valero Energy by 134.0% in the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock worth $29,000 after purchasing an additional 67 shares during the last quarter. Finally, Torren Management LLC acquired a new stake in shares of Valero Energy during the 4th quarter worth about $30,000. 78.69% of the stock is owned by institutional investors and hedge funds.

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.

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