Bank of America Corp DE Takes $1.20 Billion Position in Valero Energy Corporation $VLO

Key Points

• Bank of America acquired 4.59 million Valero shares worth approximately $1.20 billion, giving it a 1.59% stake in the company.
• Analyst sentiment remains favorable, with Valero carrying a “Moderate Buy” consensus rating and an average price target of $317.41, though some firms issued mixed views and the stock recently traded above that target.
• Valero reported quarterly EPS of $12.54, well above the $10.11 estimate, while revenue rose 48.8% year over year to $44.48 billion; it also maintains a quarterly dividend of $1.20 per share.

Bank of America Corp DE acquired a new position in shares of Valero Energy Corporation (NYSE:VLO - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 4,592,012 shares of the oil and gas company's stock, valued at approximately $1,195,943,000. Bank of America Corp DE owned approximately 1.59% of Valero Energy at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the company. Freestone Grove Partners LP lifted its position in Valero Energy by 3.5% during the second quarter. Freestone Grove Partners LP now owns 171,632 shares of the oil and gas company's stock worth $44,700,000 after buying an additional 5,851 shares during the period. Man Group plc increased its stake in shares of Valero Energy by 54.8% during the 2nd quarter. Man Group plc now owns 88,844 shares of the oil and gas company's stock valued at $23,139,000 after acquiring an additional 31,446 shares during the last quarter. Jupiter Topco LLC purchased a new position in shares of Valero Energy during the 2nd quarter worth about $35,191,000. MorganRosel Wealth Management LLC boosted its position in shares of Valero Energy by 2.5% in the second quarter. MorganRosel Wealth Management LLC now owns 3,873 shares of the oil and gas company's stock worth $1,009,000 after acquiring an additional 96 shares during the last quarter. Finally, Hsbc Holdings PLC boosted its position in shares of Valero Energy by 2.8% in the second quarter. Hsbc Holdings PLC now owns 743,997 shares of the oil and gas company's stock worth $194,174,000 after acquiring an additional 20,234 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently commented on VLO. Weiss Ratings raised shares of Valero Energy from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, August 6th. Erste Group Bank downgraded shares of Valero Energy from a "buy" rating to a "hold" rating in a research note on Thursday, August 27th. The Goldman Sachs Group lifted their price target on shares of Valero Energy from $286.00 to $357.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. Morgan Stanley boosted their price objective on shares of Valero Energy from $255.00 to $411.00 and gave the company an "equal weight" rating in a research note on Monday. Finally, Zacks Research upgraded Valero Energy from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 4th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $317.41.

Valero Energy News Summary

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Raymond James raised its price target for Valero from $350 to $450 and upgraded the stock to “strong buy,” citing potential for further appreciation from current levels. Benzinga analyst rating report
• Positive Sentiment: Valero’s competitive advantages—including access to heavy crude, constrained refining capacity and a strong balance sheet—continue to support the bullish investment case. Valero Energy Rallies 148% in a Year: Time to Buy the Refining Stock?
• Positive Sentiment: Michael Burry reportedly retains a sizable Valero position after recovering his initial investment, reinforcing confidence among some investors in the refining company’s long-term prospects. VLO Stock Heads for Best Year Since 1982
• Neutral Sentiment: Morgan Stanley lifted its target from $255 to $411 but maintained an “equal weight” rating, signaling that the improved outlook may already be reflected in the stock price. Benzinga analyst rating report
• Negative Sentiment: Valero’s sharp annual advance has pushed valuation higher, creating concern that the stock may be expensive despite strong operating fundamentals. Investors may be taking profits while awaiting additional earnings or refining-margin catalysts. Valero valuation analysis

Insider Buying and Selling

In related news, SVP Eric Fisher sold 7,500 shares of the business's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the transaction, the senior vice president directly owned 19,742 shares of the company's stock, valued at approximately $5,294,212.14. The trade was a 27.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 0.36% of the company's stock.

Valero Energy Trading Down 2.1%

Shares of VLO stock opened at $382.36 on Tuesday. The company has a quick ratio of 1.23, a current ratio of 1.64 and a debt-to-equity ratio of 0.37. Valero Energy Corporation has a fifty-two week low of $155.29 and a fifty-two week high of $399.76. The firm's 50 day moving average price is $329.24 and its two-hundred day moving average price is $273.12. The stock has a market cap of $110.09 billion, a price-to-earnings ratio of 15.87, a price-to-earnings-growth ratio of 0.31 and a beta of 0.57.

Valero Energy (NYSE:VLO - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The company had revenue of $44.48 billion during the quarter, compared to analyst estimates of $39.47 billion. During the same quarter in the prior year, the business earned $2.28 earnings per share. The business's quarterly revenue was up 48.8% compared to the same quarter last year. On average, analysts anticipate that Valero Energy Corporation will post 41.95 EPS 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 issued a dividend of $1.20 per share. This represents a $4.80 annualized dividend and a dividend yield of 1.3%. The ex-dividend date was Friday, July 31st. Valero Energy's dividend payout ratio (DPR) is presently 19.92%.

Valero Energy Company Profile

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. Its primary business is refining crude oil into transportation fuels and other products, including gasoline, diesel, jet fuel, asphalt, lubricants and petrochemical feedstocks.

Valero operates refineries and related facilities in the United States, Canada and the United Kingdom, and markets its products through wholesale and commercial channels in North America and other international markets.

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