Franklin Resources Inc. Buys 249,195 Shares of Valero Energy Corporation $VLO

Key Points

• Franklin Resources Inc. bought 249,195 shares of Valero, raising its stake 5.0% to 5,273,517 shares (1.73% of the company) worth about $897.9 million at quarter end.
• Valero beat quarterly estimates with EPS of $3.82 (vs. $3.27 expected) and revenue of $30.37 billion (vs. $28.20B est.), though revenue fell 1.2% year-over-year.
• Valero raised its quarterly dividend to $1.20 (from $1.13), an annualized $4.80 payout (2.2% yield), while analysts hold a consensus "Moderate Buy" rating with a $187.67 target.

Franklin Resources Inc. grew its stake in shares of Valero Energy Corporation (NYSE:VLO - Free Report) by 5.0% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 5,273,517 shares of the oil and gas company's stock after acquiring an additional 249,195 shares during the period. Franklin Resources Inc. owned 1.73% of Valero Energy worth $897,869,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in VLO. Waddell & Associates LLC increased its stake in shares of Valero Energy by 2.8% during the third quarter. Waddell & Associates LLC now owns 2,040 shares of the oil and gas company's stock worth $347,000 after purchasing an additional 56 shares during the period. DSG Capital Advisors LLC boosted its stake in Valero Energy by 1.6% in the 3rd quarter. DSG Capital Advisors LLC now owns 3,803 shares of the oil and gas company's stock valued at $647,000 after purchasing an additional 60 shares during the period. Cypress Capital Group grew its holdings in Valero Energy by 0.3% in the 3rd quarter. Cypress Capital Group now owns 18,786 shares of the oil and gas company's stock valued at $3,199,000 after buying an additional 63 shares in the last quarter. Private Trust Co. NA grew its holdings in Valero Energy by 2.0% in the 3rd quarter. Private Trust Co. NA now owns 3,381 shares of the oil and gas company's stock valued at $576,000 after buying an additional 65 shares in the last quarter. Finally, Becker Capital Management Inc. increased its position in Valero Energy by 0.6% during the 3rd quarter. Becker Capital Management Inc. now owns 11,837 shares of the oil and gas company's stock worth $2,015,000 after buying an additional 65 shares during the period. Institutional investors own 78.69% of the company's stock.

Valero Energy Stock Performance

VLO opened at $216.98 on Wednesday. The firm has a market cap of $64.88 billion, a P/E ratio of 28.40, a price-to-earnings-growth ratio of 1.12 and a beta of 0.70. Valero Energy Corporation has a 52-week low of $99.00 and a 52-week high of $232.99. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.11 and a current ratio of 1.64. The business's fifty day moving average is $193.70 and its 200-day moving average is $176.24.

Valero Energy (NYSE:VLO - Get Free Report) last posted its quarterly earnings results on Thursday, January 29th. The oil and gas company reported $3.82 EPS for the quarter, beating analysts' consensus estimates of $3.27 by $0.55. Valero Energy had a return on equity of 12.35% and a net margin of 1.91%.The business had revenue of $30.37 billion during the quarter, compared to the consensus estimate of $28.20 billion. During the same quarter in the previous year, the firm earned $0.64 earnings per share. Valero Energy's revenue for the quarter was down 1.2% compared to the same quarter last year. Sell-side analysts expect that Valero Energy Corporation will post 7.92 EPS for the current fiscal year.

Valero Energy Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 9th. Stockholders of record on Thursday, February 5th were given a $1.20 dividend. This represents a $4.80 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Thursday, February 5th. This is a boost from Valero Energy's previous quarterly dividend of $1.13. Valero Energy's dividend payout ratio is presently 62.83%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on VLO. Citigroup boosted their target price on shares of Valero Energy from $190.00 to $212.00 and gave the company a "neutral" rating in a research report on Monday, February 9th. Wall Street Zen raised shares of Valero Energy from a "hold" rating to a "buy" rating in a research report on Saturday, February 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of Valero Energy in a research note on Wednesday, January 21st. Piper Sandler boosted their price objective on shares of Valero Energy from $217.00 to $220.00 and gave the company an "overweight" rating in a report on Friday, January 30th. Finally, UBS Group restated a "buy" rating on shares of Valero Energy in a research report on Tuesday, January 6th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, Valero Energy currently has a consensus rating of "Moderate Buy" and a consensus target price of $187.67.

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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