Encompass Capital Advisors LLC Makes New $49.97 Million Investment in Valero Energy Corporation $VLO

Key Points

• Encompass Capital Advisors LLC has acquired a new stake in Valero Energy Corporation, purchasing 378,330 shares valued at approximately $49.97 million, representing 1.9% of its portfolio.
• Valero Energy's latest earnings report showed earnings per share (EPS) of $2.28, significantly exceeding analysts' expectations of $1.66, while revenues totaled $29.89 billion, down 13.3% year-over-year.
• The company recently declared a quarterly dividend of $1.13 per share, with a current dividend yield of 2.9% and a payout ratio of 188.33%.

Encompass Capital Advisors LLC acquired a new position in shares of Valero Energy Corporation (NYSE:VLO - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 378,330 shares of the oil and gas company's stock, valued at approximately $49,966,000. Valero Energy accounts for approximately 1.9% of Encompass Capital Advisors LLC's portfolio, making the stock its 19th biggest holding. Encompass Capital Advisors LLC owned 0.12% of Valero Energy at the end of the most recent quarter.

A number of other institutional investors have also recently bought and sold shares of VLO. Wayfinding Financial LLC acquired a new stake in shares of Valero Energy during the 1st quarter valued at about $26,000. Hazlett Burt & Watson Inc. lifted its holdings in shares of Valero Energy by 156.6% during the 1st quarter. Hazlett Burt & Watson Inc. now owns 213 shares of the oil and gas company's stock valued at $28,000 after buying an additional 130 shares during the last quarter. Ameriflex Group Inc. acquired a new stake in shares of Valero Energy during the 4th quarter valued at about $29,000. Hemington Wealth Management lifted its holdings in shares of Valero Energy by 39.9% during the 1st quarter. Hemington Wealth Management now owns 333 shares of the oil and gas company's stock valued at $43,000 after buying an additional 95 shares during the last quarter. Finally, Iron Horse Wealth Management LLC acquired a new stake in shares of Valero Energy during the 1st quarter valued at about $44,000. 78.69% of the stock is currently owned by institutional investors and hedge funds.

Valero Energy Stock Performance

Shares of VLO stock traded up $1.26 during trading on Friday, reaching $156.65. The company had a trading volume of 2,599,302 shares, compared to its average volume of 2,107,999. The firm's 50 day simple moving average is $143.44 and its two-hundred day simple moving average is $132.07. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.62 and a quick ratio of 1.11. Valero Energy Corporation has a one year low of $99.00 and a one year high of $159.26. The company has a market capitalization of $48.66 billion, a PE ratio of 65.27, a PEG ratio of 1.86 and a beta of 1.10.

Valero Energy (NYSE:VLO - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The oil and gas company reported $2.28 earnings per share for the quarter, beating analysts' consensus estimates of $1.66 by $0.62. The business had revenue of $29.89 billion for the quarter, compared to the consensus estimate of $27 billion. Valero Energy had a return on equity of 5.76% and a net margin of 0.62%.The firm's revenue was down 13.3% compared to the same quarter last year. During the same period last year, the business earned $2.71 EPS. Sell-side analysts forecast that Valero Energy Corporation will post 7.92 earnings per share for the current year.

Valero Energy Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Shareholders of record on Thursday, July 31st were given a $1.13 dividend. This represents a $4.52 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Thursday, July 31st. Valero Energy's payout ratio is currently 188.33%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. TD Cowen lowered Valero Energy from a "buy" rating to a "hold" rating and lifted their price target for the company from $118.00 to $140.00 in a report on Tuesday, July 22nd. Piper Sandler lifted their price target on Valero Energy from $159.00 to $168.00 and gave the company an "overweight" rating in a report on Monday, July 28th. Raymond James Financial lifted their price target on Valero Energy from $155.00 to $172.00 and gave the company a "strong-buy" rating in a report on Tuesday, July 15th. Bank of America upgraded Valero Energy from a "neutral" rating to a "buy" rating and lifted their price target for the company from $152.00 to $179.00 in a report on Wednesday. Finally, Morgan Stanley raised their price objective on Valero Energy from $145.00 to $160.00 and gave the company an "overweight" rating in a research note on Wednesday, July 16th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $156.40.

Valero Energy Company Profile

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol.