Capstone Capital Management Ltd Buys New Position in Valero Energy Corporation $VLO

Key Points

• Capstone Capital Management opened a new position in Valero Energy in the fourth quarter, buying 6,017 shares worth about $980,000.
• Valero has continued to attract institutional interest, with several other hedge funds increasing stakes and institutions now owning 78.69% of the company.
• Analysts remain broadly positive on the stock: Valero has an average “Moderate Buy” rating and a consensus price target of $237.94, while the company also beat quarterly earnings estimates and recently declared a $1.20 quarterly dividend.

Capstone Capital Management Ltd acquired a new stake in Valero Energy Corporation (NYSE:VLO - Free Report) during the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 6,017 shares of the oil and gas company's stock, valued at approximately $980,000. Valero Energy comprises about 0.9% of Capstone Capital Management Ltd's investment portfolio, making the stock its 26th biggest position.

Other hedge funds have also bought and sold shares of the company. ProShare Advisors LLC grew its stake in shares of Valero Energy by 4.3% in the 4th quarter. ProShare Advisors LLC now owns 66,766 shares of the oil and gas company's stock valued at $10,869,000 after buying an additional 2,749 shares during the period. HighTower Advisors LLC raised its stake in Valero Energy by 4.8% during the 4th quarter. HighTower Advisors LLC now owns 138,207 shares of the oil and gas company's stock worth $22,499,000 after buying an additional 6,384 shares during the period. Spectrum Strategic Capital Management LLC bought a new position in Valero Energy in the fourth quarter worth approximately $516,000. Gabelli Funds LLC grew its stake in Valero Energy by 4.4% in the fourth quarter. Gabelli Funds LLC now owns 80,307 shares of the oil and gas company's stock valued at $13,073,000 after acquiring an additional 3,400 shares during the period. Finally, RiverFront Investment Group LLC grew its stake in Valero Energy by 60.2% in the fourth quarter. RiverFront Investment Group LLC now owns 2,958 shares of the oil and gas company's stock valued at $482,000 after acquiring an additional 1,112 shares during the period. Institutional investors own 78.69% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. The Goldman Sachs Group upped their price objective on shares of Valero Energy from $203.00 to $237.00 and gave the stock a "buy" rating in a report on Thursday, March 12th. Argus upgraded shares of Valero Energy to a "hold" rating in a report on Monday, February 2nd. Wolfe Research reissued an "underperform" rating and set a $203.00 target price on shares of Valero Energy in a research report on Tuesday, April 21st. Zacks Research upgraded shares of Valero Energy from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 21st. Finally, Scotiabank lifted their price target on Valero Energy from $178.00 to $226.00 and gave the company a "sector outperform" rating in a research note on Wednesday, April 22nd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $237.94.

More Valero Energy News

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

• Positive Sentiment: Analysts and earnings estimate revisions are pointing higher for Valero, suggesting momentum could continue if the company keeps beating expectations. Earnings Estimates Rising for Valero Energy (VLO): Will It Gain?
• Positive Sentiment: Valero’s latest quarter reportedly crushed estimates, with management also indicating refining margins should remain strong, supporting the case for continued earnings strength. Valero Energy (VLO) Crushes Estimates in Q1, Expects Refining Margins to Remain Strong
• Positive Sentiment: The stock is also being highlighted as a strong value name and a potential buy for income-focused investors ahead of its upcoming dividend, which may be attracting buyers. Valero Energy NYSE: VLO Could Be A Buy For Its Upcoming Dividend
• Positive Sentiment: Valero was also added to a Zacks Strong Buy growth list, reinforcing the market’s view that fundamentals and valuation look attractive. Best Growth Stocks to Buy for May 18th
• Neutral Sentiment: An analyst report on Valero Energy Corp. was published, but no specific positive or negative catalyst was included in the headline details. Analyst Report: Valero Energy Corp
• Neutral Sentiment: Some commentary suggests Valero could still perform well even if oil prices fall, but that appears more like a sector strategy note than a direct company-specific catalyst. Iran Ceasefire Trade: 3 Energy Stocks to Own if Oil Falls to $80 (VLO)

Insider Activity at Valero Energy

In related news, SVP Eric A. Fisher sold 8,311 shares of Valero Energy stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $227.69, for a total transaction of $1,892,331.59. Following the completion of the sale, the senior vice president owned 42,242 shares of the company's stock, valued at approximately $9,618,080.98. This trade represents a 16.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.36% of the stock is owned by company insiders.

Valero Energy Trading Up 3.0%

NYSE VLO opened at $258.39 on Tuesday. The business's fifty day moving average is $239.59 and its 200-day moving average is $202.50. 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 $76.72 billion, a price-to-earnings ratio of 18.78, a PEG ratio of 0.35 and a beta of 0.58. Valero Energy Corporation has a one year low of $125.10 and a one year high of $260.31.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The oil and gas company reported $4.22 earnings per share for the quarter, beating the consensus estimate of $3.16 by $1.06. The business had revenue of $32.38 billion during the quarter, compared to analyst estimates of $31.38 billion. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.Valero Energy's revenue was up 7.0% compared to the same quarter last year. During the same period in the prior year, the company earned $0.89 earnings per share. Equities research analysts predict that Valero Energy Corporation will post 28.26 EPS for the current year.

Valero Energy Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Thursday, May 21st will be issued a $1.20 dividend. This represents a $4.80 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Thursday, May 21st. Valero Energy's dividend payout ratio (DPR) is presently 34.88%.

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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