Energy Income Partners LLC Increases Position in Valero Energy Corporation $VLO

Key Points

• Energy Income Partners increased its Valero Energy position by 172.8% in the second quarter, ending with 18,888 shares worth approximately $4.9 million. Institutional investors collectively own 78.69% of VLO.
• Valero reported strong quarterly results, with EPS of $12.54 versus the $10.11 consensus and revenue up 48.8% year over year to $44.48 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $288.
• Shares opened at $350.14, near their 52-week high, amid favorable refining margins and rising earnings estimates. Valero also declared a quarterly dividend of $1.20 per share, equivalent to an annualized yield of about 1.4%.

Energy Income Partners LLC increased its holdings in Valero Energy Corporation (NYSE:VLO - Free Report) by 172.8% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 18,888 shares of the oil and gas company's stock after acquiring an additional 11,963 shares during the period. Energy Income Partners LLC's holdings in Valero Energy were worth $4,919,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of VLO. Whipplewood Advisors LLC boosted its position in Valero Energy by 3,400.0% in the first 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 during the last quarter. Financial Life Planners purchased a new stake in shares of Valero Energy during the 1st quarter valued at $28,000. Valued Wealth Advisors LLC raised its stake in shares of Valero Energy by 134.0% during the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock worth $29,000 after purchasing an additional 67 shares during the period. Global Assets Advisory LLC purchased a new position in shares of Valero Energy in the 1st quarter worth about $33,000. Finally, JPL Wealth Management LLC purchased a new position in shares of Valero Energy in the 3rd quarter worth about $27,000. 78.69% of the stock is owned by hedge funds and other institutional investors.

Valero Energy News Roundup

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

• Positive Sentiment: Record diesel prices are creating an attractive margin environment for refiners. Valero is identified among the companies positioned to benefit as fuel prices diverge from crude oil prices, potentially supporting near-term profits. Diesel Prices Are Breaking Records: 3 Refiners Turning the Crisis Into Record Profits
• Positive Sentiment: Gasoline prices above $4 per gallon are supporting the outlook for refiners capable of capturing strong fuel margins. Valero was included among refining stocks viewed favorably in this environment. 4 Refining Stocks to Buy as Gas Prices Top $4 a Gallon
• Positive Sentiment: Analysts are raising earnings estimates for Valero, a trend that could provide additional support for the stock after its recent gains. Earnings Estimates Moving Higher for Valero Energy
• Positive Sentiment: VLO was added to multiple Zacks Rank #1 (Strong Buy) lists, including value, growth and overall Strong Buy screens. These rankings may attract additional buying from quantitative and momentum-focused investors. New Strong Buy Stocks for August 17th
• Neutral Sentiment: Unusually heavy put-option activity suggests some traders are positioning for downside or hedging existing holdings. Investors purchased 23,642 puts, about 179% above typical volume, but options activity alone does not establish a fundamental change in Valero’s outlook. Investors Purchase Large Volume of Put Options on Valero Energy

Wall Street Analysts Forecast Growth

VLO has been the subject of a number of research analyst reports. Morgan Stanley raised their price objective on shares of Valero Energy from $232.00 to $255.00 and gave the stock an "equal weight" rating in a report on Friday, June 12th. UBS Group increased their target price on shares of Valero Energy from $280.00 to $355.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Piper Sandler restated an "overweight" rating and set a $329.00 price target on shares of Valero Energy in a research note on Thursday, July 23rd. Wolfe Research reaffirmed an "underperform" rating and issued a $203.00 price target on shares of Valero Energy in a report on Tuesday, April 21st. Finally, Barclays upped their price objective on Valero Energy from $279.00 to $323.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $288.00.

Valero Energy Price Performance

Shares of NYSE:VLO opened at $350.14 on Wednesday. The company has a quick ratio of 1.23, a current ratio of 1.64 and a debt-to-equity ratio of 0.37. The firm has a market capitalization of $100.82 billion, a PE ratio of 14.53, a P/E/G ratio of 0.23 and a beta of 0.55. Valero Energy Corporation has a twelve month low of $136.87 and a twelve month high of $351.00. The company has a 50-day moving average price of $287.63 and a two-hundred day moving average price of $250.74.

Valero Energy (NYSE:VLO - Get Free Report) last posted its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, topping the consensus estimate of $10.11 by $2.43. The firm had revenue of $44.48 billion during the quarter, compared to the consensus estimate of $39.47 billion. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The company's revenue was up 48.8% on a year-over-year basis. During the same quarter last year, the company earned $2.28 earnings per share. Equities analysts forecast that Valero Energy Corporation will post 40.62 EPS for the current year.

Valero Energy Dividend Announcement

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

Insider Transactions at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the stock in a transaction 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 sale, the senior vice president owned 19,742 shares in the company, 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 SEC, which is available at this link. 0.36% of the stock is owned by insiders.

About Valero Energy

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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