Valero Energy (NYSE:VLO) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS raised Valero Energy’s price target from $355 to $450 and maintained a “buy” rating, implying 18.41% upside from the prior close.
• Valero shares traded at $380.03, near their 52-week high of $382.55, with the stock up substantially above its 50-day and 200-day moving averages.
• The company exceeded quarterly expectations, reporting $12.54 in EPS versus a $10.11 consensus estimate and $44.48 billion in revenue, up 48.8% year over year. Analysts collectively rate the stock “Moderate Buy,” while institutional investors own 78.69% of shares.

Valero Energy (NYSE:VLO - Get Free Report) had its price objective hoisted by equities research analysts at UBS Group from $355.00 to $450.00 in a report issued on Tuesday, Benzinga reports. The brokerage currently has a "buy" rating on the oil and gas company's stock. UBS Group's price target indicates a potential upside of 18.41% from the stock's previous close.

VLO has been the topic of a number of other reports. Morgan Stanley increased their target price on shares of Valero Energy from $232.00 to $255.00 and gave the stock an "equal weight" rating in a report on Friday, June 12th. Wells Fargo & Company lifted their price target on shares of Valero Energy from $356.00 to $389.00 and gave the company an "overweight" rating in a report on Tuesday, September 1st. Mizuho boosted their price objective on shares of Valero Energy from $289.00 to $300.00 and gave the company a "neutral" rating in a research report on Tuesday, August 4th. Weiss Ratings upgraded shares of Valero Energy from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 6th. Finally, TD Cowen raised their target price on shares of Valero Energy from $338.00 to $350.00 and gave the stock a "hold" rating in a report on Monday, August 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Valero Energy presently has an average rating of "Moderate Buy" and an average price target of $301.76.

Valero Energy Stock Performance

Shares of VLO traded up $9.31 during mid-day trading on Tuesday, hitting $380.03. The stock had a trading volume of 633,276 shares, compared to its average volume of 3,277,943. Valero Energy has a fifty-two week low of $153.60 and a fifty-two week high of $382.55. 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 company has a market cap of $109.42 billion, a PE ratio of 15.78, a PEG ratio of 0.42 and a beta of 0.57. The company's fifty day simple moving average is $317.34 and its two-hundred day simple moving average is $266.53.

Valero Energy (NYSE:VLO - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (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 analyst estimates of $39.47 billion. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The business's revenue was up 48.8% compared to the same quarter last year. During the same period in the prior year, the company posted $2.28 EPS. On average, equities analysts expect that Valero Energy will post 41.15 earnings per share for the current year.

Insider Transactions at Valero Energy

In other Valero Energy news, SVP Eric Fisher sold 7,500 shares of the firm's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the transaction, the senior vice president owned 19,742 shares of the company's stock, valued at approximately $5,294,212.14. This trade represents a 27.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.36% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Woodline Partners LP increased its position in shares of Valero Energy by 40.7% during the 1st quarter. Woodline Partners LP now owns 26,747 shares of the oil and gas company's stock valued at $3,532,000 after purchasing an additional 7,735 shares during the period. Sivia Capital Partners LLC lifted its holdings in shares of Valero Energy by 13.0% in the second quarter. Sivia Capital Partners LLC now owns 1,929 shares of the oil and gas company's stock valued at $259,000 after buying an additional 222 shares during the period. Gamco Investors INC. ET AL bought a new position in Valero Energy during the second quarter valued at about $528,000. Sei Investments Co. boosted its stake in Valero Energy by 11.3% during the second quarter. Sei Investments Co. now owns 269,043 shares of the oil and gas company's stock valued at $36,165,000 after buying an additional 27,291 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its holdings in Valero Energy by 0.9% during the second quarter. Treasurer of the State of North Carolina now owns 145,810 shares of the oil and gas company's stock worth $19,600,000 after acquiring an additional 1,338 shares during the period. 78.69% of the stock is currently owned by institutional investors.

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.

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