Valero Energy Corporation (NYSE:VLO) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Valero Energy, with nine buy ratings, two strong-buy ratings, eight holds and one sell. The average 12-month price target is $335.12, though several firms recently raised their targets substantially.
• Valero reported quarterly EPS of $12.54, exceeding the $10.11 consensus estimate, while revenue rose 48.8% year over year to $44.48 billion.
• The company declared a quarterly dividend of $1.20 per share, equivalent to $4.80 annually and a 1.2% yield; institutional investors own approximately 78.7% of its stock.

Valero Energy Corporation (NYSE:VLO - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twenty ratings firms that are covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, nine have assigned a buy rating and two have assigned a strong buy rating to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $335.12.

Several research analysts have commented on the stock. Piper Sandler lifted their price objective on shares of Valero Energy from $329.00 to $435.00 and gave the stock an "overweight" rating in a research note on Thursday, September 3rd. Barclays increased their target price on shares of Valero Energy from $279.00 to $323.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. The Goldman Sachs Group raised their target price on shares of Valero Energy from $365.00 to $457.00 and gave the stock a "buy" rating in a report on Wednesday, September 23rd. Mizuho lifted their price target on shares of Valero Energy from $289.00 to $300.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Finally, UBS Group upped their price target on shares of Valero Energy from $355.00 to $450.00 and gave the company a "buy" rating in a report on Tuesday, September 8th.

Valero Energy Price Performance

NYSE:VLO opened at $387.56 on Thursday. The firm has a market capitalization of $111.59 billion, a price-to-earnings ratio of 16.08, a PEG ratio of 0.26 and a beta of 0.57. Valero Energy has a 1 year low of $155.29 and a 1 year high of $419.04. The business has a 50 day simple moving average of $352.40 and a 200-day simple moving average of $287.82. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23.

Valero Energy (NYSE:VLO - Get Free Report) last announced its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 EPS for the quarter, topping analysts' consensus estimates of $10.11 by $2.43. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The firm had revenue of $44.48 billion during the quarter, compared to analysts' expectations of $39.47 billion. During the same quarter in the previous year, the business earned $2.28 EPS. The company's quarterly revenue was up 48.8% on a year-over-year basis. Equities analysts forecast that Valero Energy will post 49.17 EPS for the current year.

Valero Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Friday, July 31st were paid a $1.20 dividend. The ex-dividend date of this dividend was Friday, July 31st. This represents a $4.80 annualized dividend and a yield of 1.2%. Valero Energy's dividend payout ratio (DPR) is presently 19.92%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Cornerstone Financial Management LLC boosted its holdings in Valero Energy by 57.6% during the 2nd quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company's stock valued at $27,000 after acquiring an additional 38 shares during the period. Whipplewood Advisors LLC lifted its position in shares of Valero Energy by 3,400.0% during the first quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock worth $26,000 after purchasing an additional 102 shares during the last quarter. Financial Life Planners purchased a new stake in shares of Valero Energy during the first quarter valued at $28,000. Valued Wealth Advisors LLC grew its holdings in shares of Valero Energy by 134.0% in the first 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, Global Assets Advisory LLC purchased a new position in Valero Energy in the 1st quarter worth about $33,000. Institutional investors own 78.69% of the company's stock.

About Valero Energy

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.

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