Gateway Investment Advisers LLC Raises Stock Position in Valero Energy Corporation $VLO

Key Points

• Gateway Investment Advisers LLC raised its stake in Valero by 21.6% in Q4 to 24,465 shares (about $3.98M), as part of roughly 78.7% of the stock being held by institutional investors.
• Valero beat Q1 expectations, reporting EPS of $4.22 vs. $3.16 expected and revenue of $32.38B, which spurred several analyst price-target increases and an average target of $237.94 with a "Moderate Buy" consensus.
• Valero declared a quarterly dividend of $1.20 (annualized $4.80) for a 2.0% yield, with an ex-dividend date of May 21 and payment on June 23.

Gateway Investment Advisers LLC grew its holdings in Valero Energy Corporation (NYSE:VLO - Free Report) by 21.6% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 24,465 shares of the oil and gas company's stock after buying an additional 4,347 shares during the period. Gateway Investment Advisers LLC's holdings in Valero Energy were worth $3,983,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. Indivisible Partners bought a new stake in shares of Valero Energy in the 4th quarter worth about $296,000. Stevens Capital Management LP lifted its holdings in shares of Valero Energy by 505.4% in the 4th quarter. Stevens Capital Management LP now owns 10,733 shares of the oil and gas company's stock worth $1,747,000 after acquiring an additional 8,960 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Valero Energy by 2.1% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 644,234 shares of the oil and gas company's stock worth $106,498,000 after acquiring an additional 13,364 shares during the last quarter. Providence First Trust Co bought a new stake in shares of Valero Energy in the 4th quarter worth about $313,000. Finally, Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in shares of Valero Energy by 0.9% in the 4th quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 45,091 shares of the oil and gas company's stock worth $7,340,000 after acquiring an additional 393 shares during the last quarter. 78.69% of the stock is owned by hedge funds and other institutional investors.

Valero Energy Trading Down 0.4%

Shares of VLO opened at $235.83 on Friday. Valero Energy Corporation has a 1-year low of $117.71 and a 1-year high of $258.43. The company has a 50-day moving average of $234.82 and a 200 day moving average of $198.52. The firm has a market capitalization of $70.52 billion, a price-to-earnings ratio of 17.14, a PEG ratio of 0.34 and a beta of 0.58. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.11.

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 analysts' consensus estimates of $3.16 by $1.06. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. The company had revenue of $32.38 billion during the quarter, compared to analyst estimates of $31.38 billion. During the same quarter last year, the business posted $0.89 EPS. The firm's revenue for the quarter was up 7.0% on a year-over-year basis. On average, research analysts expect that Valero Energy Corporation will post 27.55 EPS for the current year.

Valero Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 23rd. Investors of record on Thursday, May 21st will be issued a dividend of $1.20 per share. The ex-dividend date is Thursday, May 21st. This represents a $4.80 dividend on an annualized basis and a yield of 2.0%. Valero Energy's dividend payout ratio (DPR) is presently 34.88%.

Analysts Set New Price Targets

Several research firms have recently issued reports on VLO. Morgan Stanley raised their target price on shares of Valero Energy from $182.00 to $222.00 and gave the stock an "equal weight" rating in a report on Friday, April 24th. TD Cowen raised their target price on shares of Valero Energy from $255.00 to $276.00 and gave the stock a "hold" rating in a report on Monday. JPMorgan Chase & Co. raised their target price on shares of Valero Energy from $197.00 to $200.00 and gave the stock an "overweight" rating in a report on Thursday, January 8th. Piper Sandler raised their target price on shares of Valero Energy from $236.00 to $263.00 and gave the stock an "overweight" rating in a report on Wednesday, April 8th. Finally, UBS Group raised their target price on shares of Valero Energy from $215.00 to $280.00 and gave the stock a "buy" rating in a report on Thursday, April 2nd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $237.94.

Key Valero Energy News

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

• Positive Sentiment: Board declared a regular quarterly cash dividend of $1.20 per share payable June 23 (record date May 21), reinforcing yield and income appeal for dividend investors. Read More.
• Positive Sentiment: Valero was highlighted as a PEG-driven GARP (growth at a reasonable price) candidate, signaling its combination of discounted valuation and long-term growth potential that can attract growth/value investors. Read More.
• Positive Sentiment: Zacks included VLO on a short list of top growth/refining & marketing stocks and placed it on a Zacks Rank #1 (Strong Buy) growth list, which can drive retail interest and momentum flows. Read More.
• Neutral Sentiment: Morgan Stanley raised its price target to $232 from $222 following stronger-than-expected Q1 results, acknowledging upside in fundamentals but leaving the stock at an industry-weight stance. Read More.
• Neutral Sentiment: Broader market strength (S&P and Nasdaq at/near record highs) is a tailwind for equities generally, which may support continued investor interest in cyclical names like refiners. Read More.
• Negative Sentiment: Despite the higher price target, Morgan Stanley kept an Equal Weight rating — a restraint on bullish sentiment that may limit near-term analyst-driven buying. Read More.

Insiders Place Their Bets

In related news, SVP Eric A. Fisher sold 400 shares of Valero Energy stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $238.60, for a total transaction of $95,440.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 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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