Erste Group Bank Forecasts Higher Earnings for Valero Energy

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Valero Energy to $28.12 from $27.70, above the current consensus of $27.45 per share. The firm also projected FY2027 earnings of $21.03 per share.
• Valero recently beat Wall Street expectations in its latest quarter, reporting $4.22 EPS versus the $3.16 estimate and revenue of $32.38 billion, up 7% year over year. The company also posted solid profitability metrics, including a 15.94% return on equity.
• The stock has seen mixed signals but remains broadly favored, with analysts holding a “Moderate Buy” consensus and an average price target of $246.53. Valero also paid a quarterly dividend of $1.20 per share, implying a 1.8% annual yield.

Valero Energy Corporation (NYSE:VLO - Free Report) - Investment analysts at Erste Group Bank boosted their FY2026 earnings per share estimates for Valero Energy in a research note issued on Thursday, June 25th. Erste Group Bank analyst H. Engel now anticipates that the oil and gas company will earn $28.12 per share for the year, up from their previous estimate of $27.70. The consensus estimate for Valero Energy's current full-year earnings is $27.45 per share. Erste Group Bank also issued estimates for Valero Energy's FY2027 earnings at $21.03 EPS.

Several other research firms have also recently issued reports on VLO. BMO Capital Markets raised their target price on shares of Valero Energy from $230.00 to $270.00 and gave the stock an "outperform" rating in a research report on Monday, April 6th. Raymond James Financial upped their price target on shares of Valero Energy from $215.00 to $290.00 and gave the stock a "strong-buy" rating in a research report on Wednesday, March 25th. Mizuho increased their price target on shares of Valero Energy from $222.00 to $289.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 27th. UBS Group reiterated a "buy" rating and issued a $280.00 price target on shares of Valero Energy in a report on Thursday, June 11th. Finally, Wolfe Research reissued an "underperform" rating and set a $203.00 price objective on shares of Valero Energy in a research note on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Valero Energy presently has an average rating of "Moderate Buy" and a consensus price target of $246.53.

Valero Energy Stock Down 2.1%

VLO opened at $260.62 on Wednesday. Valero Energy has a 12 month low of $130.78 and a 12 month high of $272.17. The business has a 50-day moving average of $247.50 and a two-hundred day moving average of $218.91. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.15. The stock has a market capitalization of $77.39 billion, a price-to-earnings ratio of 18.94, a price-to-earnings-growth ratio of 0.38 and a beta of 0.55.

Valero Energy (NYSE:VLO - Get Free Report) last released its earnings results on Thursday, April 30th. The oil and gas company reported $4.22 earnings per share for the quarter, topping the consensus estimate of $3.16 by $1.06. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.The firm had revenue of $32.38 billion for the quarter, compared to the consensus estimate of $31.38 billion. During the same period in the prior year, the business posted $0.89 earnings per share. The firm's revenue for the quarter was up 7.0% compared to the same quarter last year.

Hedge Funds Weigh In On Valero Energy

Hedge funds and other institutional investors have recently made changes to their positions in the business. Sapient Capital LLC raised its position in Valero Energy by 724.2% in the first quarter. Sapient Capital LLC now owns 34,361 shares of the oil and gas company's stock valued at $8,491,000 after purchasing an additional 30,192 shares during the period. Pacer Advisors Inc. boosted its position in shares of Valero Energy by 15.0% in the first quarter. Pacer Advisors Inc. now owns 1,092,978 shares of the oil and gas company's stock worth $270,053,000 after buying an additional 142,451 shares during the period. First National Bank of Mount Dora Trust Investment Services boosted its position in shares of Valero Energy by 245.0% in the first quarter. First National Bank of Mount Dora Trust Investment Services now owns 17,954 shares of the oil and gas company's stock worth $4,436,000 after buying an additional 12,750 shares during the period. Parallel Advisors LLC grew its stake in shares of Valero Energy by 15.2% in the first quarter. Parallel Advisors LLC now owns 2,850 shares of the oil and gas company's stock valued at $704,000 after buying an additional 376 shares in the last quarter. Finally, NewEdge Advisors LLC raised its holdings in shares of Valero Energy by 19.2% during the 1st quarter. NewEdge Advisors LLC now owns 59,298 shares of the oil and gas company's stock valued at $14,651,000 after buying an additional 9,553 shares during the period. Institutional investors and hedge funds own 78.69% of the company's stock.

Insider Transactions at Valero Energy

In other news, SVP Eric A. Fisher sold 7,500 shares of the 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 owned 19,742 shares of the company's stock, valued at $5,294,212.14. This represents a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.36% of the stock is currently owned by corporate insiders.

Valero Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Thursday, May 21st were given a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Thursday, May 21st. Valero Energy's payout ratio is 34.88%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.