Franklin Resources Inc. Increases Stake in Valero Energy Corporation $VLO

Key Points

• Franklin Resources boosted its Valero Energy stake by 7.5% in the fourth quarter, bringing its holdings to 5.67 million shares worth about $922.7 million. Institutional ownership in Valero remains very high at 78.69%.
• Valero reported better-than-expected quarterly results, posting $4.22 EPS versus the $3.16 consensus and revenue of $32.38 billion, up 7% year over year. Analysts still expect strong full-year earnings of 26.51 EPS.
• The company also announced a quarterly dividend of $1.20 per share, payable June 23, implying a $4.80 annualized dividend yield of about 1.9%. Meanwhile, Wall Street sentiment is broadly positive, with a consensus rating of Moderate Buy and a price target of $243.65.

Franklin Resources Inc. increased its holdings in Valero Energy Corporation (NYSE:VLO - Free Report) by 7.5% in the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 5,668,210 shares of the oil and gas company's stock after purchasing an additional 394,693 shares during the period. Franklin Resources Inc. owned approximately 1.86% of Valero Energy worth $922,728,000 as of its most recent SEC filing.

A number of other institutional investors also recently made changes to their positions in VLO. JPL Wealth Management LLC purchased a new stake in Valero Energy during the 3rd quarter valued at $27,000. Torren Management LLC purchased a new stake in Valero Energy during the 4th quarter valued at $30,000. AXS Investments LLC purchased a new stake in Valero Energy during the 4th quarter valued at $32,000. Triumph Capital Management purchased a new stake in Valero Energy during the 3rd quarter valued at $35,000. Finally, Bruce G. Allen Investments LLC boosted its position in Valero Energy by 32.9% during the 4th quarter. Bruce G. Allen Investments LLC now owns 206 shares of the oil and gas company's stock valued at $34,000 after buying an additional 51 shares during the period. Hedge funds and other institutional investors own 78.69% of the company's stock.

Valero Energy Stock Up 0.1%

Shares of NYSE VLO opened at $256.03 on Monday. The company has a current ratio of 1.58, a quick ratio of 1.15 and a debt-to-equity ratio of 0.39. Valero Energy Corporation has a 12 month low of $127.83 and a 12 month high of $265.61. The firm has a market capitalization of $76.02 billion, a PE ratio of 18.61, a price-to-earnings-growth ratio of 0.38 and a beta of 0.55. The firm has a fifty day simple moving average of $244.66 and a two-hundred day simple moving average of $210.01.

Valero Energy (NYSE:VLO - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The oil and gas company reported $4.22 EPS for the quarter, topping the consensus estimate of $3.16 by $1.06. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. The business had revenue of $32.38 billion during the quarter, compared to analyst estimates of $31.38 billion. During the same period in the prior year, the business earned $0.89 EPS. The company's revenue for the quarter was up 7.0% on a year-over-year basis. Equities analysts expect that Valero Energy Corporation will post 26.51 earnings per share for the current year.

Valero Energy Dividend Announcement

The business also recently disclosed 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. The ex-dividend date is Thursday, May 21st. This represents a $4.80 annualized dividend and a yield of 1.9%. Valero Energy's dividend payout ratio is 34.88%.

Insider Buying and Selling

In other Valero Energy news, SVP Eric A. Fisher sold 8,311 shares of the company's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $227.69, for a total value of $1,892,331.59. Following the completion of the transaction, the senior vice president directly owned 42,242 shares in the company, valued at approximately $9,618,080.98. This represents a 16.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.36% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on VLO shares. Wells Fargo & Company increased their price target on shares of Valero Energy from $220.00 to $292.00 and gave the company an "overweight" rating in a research report on Tuesday, March 31st. UBS Group increased their price target on shares of Valero Energy from $215.00 to $280.00 and gave the company a "buy" rating in a research report on Thursday, April 2nd. Raymond James Financial increased their price target on shares of Valero Energy from $215.00 to $290.00 and gave the company a "strong-buy" rating in a research report on Wednesday, March 25th. Citigroup increased their price target on shares of Valero Energy from $246.00 to $259.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. Finally, The Goldman Sachs Group increased their price target on shares of Valero Energy from $203.00 to $237.00 and gave the company a "buy" rating in a research report on Thursday, March 12th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $243.65.

Valero Energy News Summary

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

• Positive Sentiment: Zacks highlighted Valero as one of the best low-beta stocks to buy right away, pointing to recent gains, solid trading volume, and the appeal of defensive energy exposure amid market volatility. Article Title
• Positive Sentiment: Another Zacks note said cleaner transportation fuels are powering Valero’s growth, citing expansion in renewable diesel, sustainable aviation fuel, and ethanol as longer-term cash flow drivers. Article Title
• Positive Sentiment: Valero was also featured as a strong value and growth name, with Zacks assigning it favorable rankings that may reinforce investor confidence in the stock’s earnings and valuation profile. Article Title
• Positive Sentiment: Valero’s refining strength was emphasized again in a Zacks article arguing that high oil prices should not fully derail margins because of tight global refining capacity and low fuel inventories. Article Title
• Positive Sentiment: Multiple headlines noted that Valero recently hit a 52-week high and has outperformed the Nasdaq over the past year, suggesting strong momentum and supportive fundamentals. Article Title
• Neutral Sentiment: One article discussed whether VLO’s run can continue after reaching a 52-week high, but it mainly framed the question around existing fundamentals rather than delivering a clear new catalyst. Article Title
• Negative Sentiment: A Yahoo Finance piece flagged possible bearish signals from insider stock sales over the past year, which could temper enthusiasm if investors focus on governance or insider sentiment. Article Title
• Negative Sentiment: Seeking Alpha argued Valero may be a great business but at the wrong price, implying valuation could be a headwind after the stock’s strong run. Article Title

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.

Want to see what other hedge funds are holding VLO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Valero Energy Corporation (NYSE:VLO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.