Groupe la Francaise Invests $7.09 Million in Valero Energy Corporation $VLO

Key Points

• Groupe la Française bought a new $7.09 million stake in Valero Energy during the first quarter, acquiring 28,702 shares. Institutional investors collectively own 78.69% of the company.
• Valero reported a strong second quarter, with adjusted earnings of $12.54 per share and revenue of $44.48 billion, significantly exceeding analyst expectations. Higher refining margins, fuel demand and exports were key drivers.
• Analysts raised several price targets and maintained generally bullish ratings, while Valero reaffirmed its quarterly dividend of $1.20 per share. Risks include potential normalization of refining margins and challenges affecting its renewable-fuels business.

Groupe la Francaise bought a new stake in shares of Valero Energy Corporation (NYSE:VLO - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 28,702 shares of the oil and gas company's stock, valued at approximately $7,092,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Whipplewood Advisors LLC increased its holdings in Valero Energy by 3,400.0% in the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock valued at $26,000 after buying an additional 102 shares during the period. JPL Wealth Management LLC bought a new position in shares of Valero Energy during the 3rd quarter worth about $27,000. Financial Life Planners bought a new position in shares of Valero Energy during the 1st quarter worth about $28,000. Valued Wealth Advisors LLC boosted its position 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 valued at $29,000 after acquiring an additional 67 shares in the last quarter. Finally, Torren Management LLC acquired a new stake in shares of Valero Energy during the 4th quarter valued at about $30,000. Institutional investors and hedge funds own 78.69% of the company's stock.

Insiders Place Their Bets

In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the business's stock in a transaction dated 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 completion of the sale, the senior vice president directly owned 19,742 shares of the company's stock, valued at approximately $5,294,212.14. The trade was a 27.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.36% of the stock is owned by company insiders.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Record earnings significantly exceeded expectations. Valero reported second-quarter net income of $3.7 billion, or $12.62 per share, versus $714 million, or $2.28 per share, a year earlier. Adjusted EPS of $12.54 surpassed consensus estimates near $9.87-$10.13, while revenue rose 48.8% to $44.48 billion. Valero Energy beats quarterly profit estimates on higher refining margins
• Positive Sentiment: Refining conditions were particularly favorable. Higher refining margins, sturdy fuel demand and increased U.S. fuel exports—partly supported by heightened Middle East tensions—boosted profitability. Lower-cost Venezuelan feedstocks also aided results. Valero posts highest-ever Q2 profit
• Positive Sentiment: Renewables and capital discipline added support. Gains in renewable diesel and ethanol contributed to stronger profits and cash flow, while management emphasized disciplined capital allocation and ongoing shareholder returns. VLO Q2 Earnings Call Highlights Refining Strength
• Positive Sentiment: Analysts raised their outlooks. Wells Fargo increased its price target from $292 to $356 and retained an “overweight” rating. Barclays lifted its target from $279 to $323 and also rated the stock “overweight,” reinforcing the positive reaction to the earnings report.
• Positive Sentiment: The dividend remains a key attraction. Valero reaffirmed its $1.20-per-share quarterly dividend, payable August 31 to shareholders of record July 31, supporting the investment case based on cash returns. Valero Energy Corp's Dividend Analysis
• Neutral Sentiment: Valero’s strong quarter improves its value profile, but the stock’s rally leaves less upside to some analyst targets and increases sensitivity to future refining-margin normalization.
• Negative Sentiment: Management said tax-credit changes and registration hurdles have slowed biofuel imports, creating challenges for renewable-fuel compliance and potentially limiting near-term benefits in the company’s renewables business. Tax-credit overhaul slows biofuel imports

Valero Energy Stock Up 0.4%

Shares of NYSE:VLO opened at $312.89 on Friday. Valero Energy Corporation has a 12 month low of $130.78 and a 12 month high of $320.24. The company's 50-day moving average price is $270.62 and its two-hundred day moving average price is $238.69. The company has a quick ratio of 1.15, a current ratio of 1.58 and a debt-to-equity ratio of 0.39. The firm has a market cap of $92.91 billion, a P/E ratio of 12.98, a P/E/G ratio of 0.20 and a beta of 0.55.

Valero Energy (NYSE:VLO - Get Free Report) last announced its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, topping analysts' consensus estimates of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 27.11%. The company had revenue of $44.48 billion during the quarter, compared to the consensus estimate of $39.47 billion. During the same period in the previous year, the firm posted $2.28 earnings per share. The company's revenue was up 48.8% on a year-over-year basis. As a group, research analysts forecast that Valero Energy Corporation will post 36.64 EPS for the current fiscal year.

Valero Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be given a $1.20 dividend. This represents a $4.80 annualized dividend and a yield of 1.5%. The ex-dividend date is Friday, July 31st. Valero Energy's payout ratio is 19.92%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on VLO. Barclays increased their price target on shares of Valero Energy from $279.00 to $323.00 and gave the stock an "overweight" rating in a research report on Friday. Raymond James Financial upped their price objective on Valero Energy from $300.00 to $340.00 and gave the company a "strong-buy" rating in a research note on Monday, July 13th. Wells Fargo & Company increased their target price on Valero Energy from $292.00 to $356.00 and gave the stock an "overweight" rating in a report on Friday. Morgan Stanley raised their target price on Valero Energy from $232.00 to $255.00 and gave the stock an "equal weight" rating in a research report on Friday, June 12th. Finally, UBS Group upped their price target on Valero Energy from $280.00 to $355.00 and gave the company a "buy" rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $277.47.

Valero Energy Profile

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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