Valero Energy Corporation (NYSE:VLO) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts rate Valero Energy “Moderate Buy”: Of 21 brokerages, 10 recommend buying, two strongly recommend buying, eight rate it a hold, and one recommends selling. The average 12-month price target is approximately $296.18.
• Valero reported strong quarterly results, earning $12.54 per share versus the $10.11 consensus estimate and generating $44.48 billion in revenue, up 48.8% year over year.
• The stock opened at $370.94 near its 52-week high, while Valero maintained a quarterly dividend of $1.20 per share, equivalent to a $4.80 annualized payout and a 1.3% yield. Institutional investors own 78.69% of the company, while an executive recently sold 7,500 shares.

Shares of Valero Energy Corporation (NYSE:VLO - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-one brokerages that are covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, eight have given a hold recommendation, ten have issued a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $296.1765.

A number of research analysts have recently issued reports on the company. Mizuho boosted their price objective on Valero Energy from $289.00 to $300.00 and gave the company a "neutral" rating in a research note on Tuesday, August 4th. Raymond James Financial raised their target price 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. Jefferies Financial Group set a $350.00 target price on Valero Energy in a report on Monday, August 3rd. Barclays boosted their price target on Valero Energy from $279.00 to $323.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Finally, TD Cowen raised their price objective on shares of Valero Energy from $338.00 to $350.00 and gave the stock a "hold" rating in a research report on Monday, August 3rd.

Insider Buying and Selling

In other Valero Energy news, SVP Eric Fisher sold 7,500 shares of the firm's stock in a transaction on 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 completion of the sale, the senior vice president directly owned 19,742 shares in the company, valued at approximately $5,294,212.14. This trade represents a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.36% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its holdings in shares of Valero Energy by 40,516.1% in the 2nd quarter. California State Teachers Retirement System now owns 143,816,270 shares of the oil and gas company's stock worth $37,455,509,000 after purchasing an additional 143,462,183 shares in the last quarter. Norges Bank bought a new stake in Valero Energy during the 4th quarter valued at $1,111,542,000. Bank of America Corp DE bought a new stake in Valero Energy during the 2nd quarter valued at $1,195,943,000. Arrowstreet Capital Limited Partnership acquired a new position in Valero Energy during the third quarter worth $275,239,000. Finally, Pacer Advisors Inc. raised its holdings in Valero Energy by 2,635.7% during the fourth quarter. Pacer Advisors Inc. now owns 950,527 shares of the oil and gas company's stock worth $154,736,000 after buying an additional 915,782 shares during the last quarter. Institutional investors own 78.69% of the company's stock.

Valero Energy Stock Up 0.1%

Shares of NYSE VLO opened at $370.94 on Friday. The company has a market capitalization of $106.80 billion, a P/E ratio of 15.39, a price-to-earnings-growth ratio of 0.42 and a beta of 0.57. Valero Energy has a 52-week low of $153.20 and a 52-week high of $375.11. 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 price is $315.25 and its 200-day moving average price is $264.85.

Valero Energy (NYSE:VLO - Get Free Report) last announced its earnings results 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. The business 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 5.17% and a return on equity of 26.74%. Valero Energy's quarterly revenue was up 48.8% on a year-over-year basis. During the same quarter last year, the firm earned $2.28 earnings per share. Equities analysts forecast that Valero Energy will post 41.15 earnings per share for the current year.

Valero Energy Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Friday, July 31st were paid a dividend of $1.20 per share. The ex-dividend date of this dividend was Friday, July 31st. This represents a $4.80 annualized dividend and a yield of 1.3%. Valero Energy's dividend payout ratio is currently 19.92%.

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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