BlackRock Inc. Reduces Holdings in Valero Energy Corporation $VLO

Key Points

• BlackRock reduced its Valero Energy stake by 3.3% in the second quarter, selling 869,238 shares, but still held 25.14 million shares worth approximately $6.55 billion, or 8.47% of the company.
• Valero reported a strong quarterly performance, with EPS of $12.54 versus the $10.11 consensus and revenue of $44.48 billion, up 48.8% year over year. The company also declared a quarterly dividend of $1.20 per share.
• Shares recently traded near their 52-week high, while analysts maintained a generally positive outlook; the stock has a “Moderate Buy” consensus rating, despite elevated put-option activity and an insider share sale.

BlackRock Inc. lowered its position in Valero Energy Corporation (NYSE:VLO - Free Report) by 3.3% during the second quarter, according to its most recent filing with the SEC. The institutional investor owned 25,143,225 shares of the oil and gas company's stock after selling 869,238 shares during the period. BlackRock Inc. owned 8.47% of Valero Energy worth $6,548,301,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of VLO. Whipplewood Advisors LLC lifted its stake in Valero Energy by 3,400.0% in the 1st 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 in the last quarter. Financial Life Planners purchased a new stake in shares of Valero Energy in the first quarter valued at approximately $28,000. Valued Wealth Advisors LLC increased 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 valued at $29,000 after purchasing an additional 67 shares during the last quarter. Global Assets Advisory LLC purchased a new position in Valero Energy during the first quarter worth approximately $33,000. Finally, JPL Wealth Management LLC purchased a new position in Valero Energy during the third quarter worth approximately $27,000. Hedge funds and other institutional investors own 78.69% of the company's stock.

Valero Energy Stock Up 1.6%

Shares of NYSE:VLO opened at $347.25 on Tuesday. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. The firm has a market capitalization of $99.98 billion, a PE ratio of 14.41, a price-to-earnings-growth ratio of 0.23 and a beta of 0.55. The firm's 50-day moving average is $285.70 and its two-hundred day moving average is $249.58. Valero Energy Corporation has a 1 year low of $135.02 and a 1 year high of $350.63.

Valero Energy (NYSE:VLO - Get Free Report) last posted its quarterly earnings data 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. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The business had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. During the same quarter in the prior year, the company earned $2.28 earnings per share. The company's revenue was up 48.8% on a year-over-year basis. Analysts predict that Valero Energy Corporation will post 40.62 EPS for the current year.

Valero Energy Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, July 31st will be given a $1.20 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.4%. Valero Energy's dividend payout ratio is currently 19.92%.

Insider Buying and Selling at Valero Energy

In other news, SVP Eric A. Fisher sold 7,500 shares of the firm's stock in a transaction dated 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 sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.36% of the company's stock.

Wall Street Analysts Forecast Growth

VLO has been the subject of a number of analyst reports. UBS Group upped their price objective on shares of Valero Energy from $280.00 to $355.00 and gave the company a "buy" rating in a report on Friday, July 31st. Citigroup lifted their target price on shares of Valero Energy from $259.00 to $302.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 14th. Zacks Research upgraded shares of Valero Energy from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 4th. Wells Fargo & Company increased their price target on shares of Valero Energy from $292.00 to $356.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Finally, Piper Sandler restated an "overweight" rating and set a $329.00 price target on shares of Valero Energy in a report on Thursday, July 23rd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $288.00.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Higher gasoline prices, above $4 per gallon, may support attractive refining margins for efficient refiners such as Valero. The favorable industry backdrop could improve cash generation and near-term earnings prospects. 4 Refining Stocks to Buy as Gas Prices Top $4 a Gallon
• Positive Sentiment: Valero was added to multiple Zacks Rank #1, or “Strong Buy,” lists covering growth, value and overall stock ideas. These rankings reflect favorable quantitative factors and may increase buying interest. New Strong Buy Stocks for August 17th
• Positive Sentiment: Analysts are moving Valero’s earnings estimates higher, suggesting improving expectations for profitability and potentially continued upward momentum. The company’s latest quarterly results already showed a substantial earnings and revenue beat, strengthening the fundamental case. Earnings Estimates Moving Higher for Valero Energy
• Neutral Sentiment: Unusually high put-option activity was reported, with investors purchasing 23,642 puts—179% above average daily volume. This may indicate increased hedging or bearish speculation, although options activity alone does not establish a clear direction for the stock.

Valero Energy 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.

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