Los Angeles Capital Management LLC Boosts Position in Valero Energy Corporation $VLO

Key Points

• Los Angeles Capital Management increased its Valero Energy stake by 200.4% in the fourth quarter, ending with 372,640 shares valued at about $63.4 million.
• Valero reported better-than-expected quarterly results, posting EPS of $4.22 versus the $3.16 consensus and revenue of $32.38 billion, while also announcing a $1.20 quarterly dividend payable June 23.
• Analyst sentiment is mixed but generally positive, with multiple firms raising price targets and MarketBeat showing a consensus rating of Moderate Buy with an average target price of $243.65.

Los Angeles Capital Management LLC lifted its stake in shares of Valero Energy Corporation (NYSE:VLO - Free Report) by 200.4% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 372,640 shares of the oil and gas company's stock after acquiring an additional 248,586 shares during the period. Los Angeles Capital Management LLC owned 0.12% of Valero Energy worth $63,386,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also modified their holdings of the stock. Norges Bank purchased a new position in shares of Valero Energy during the 4th quarter worth $1,111,542,000. Franklin Resources Inc. raised its holdings in shares of Valero Energy by 5.0% during the 3rd quarter. Franklin Resources Inc. now owns 5,273,517 shares of the oil and gas company's stock worth $897,869,000 after acquiring an additional 249,195 shares during the period. Barclays PLC raised its holdings in shares of Valero Energy by 5.3% during the 3rd quarter. Barclays PLC now owns 4,143,672 shares of the oil and gas company's stock worth $705,502,000 after acquiring an additional 209,597 shares during the period. Legal & General Group Plc raised its holdings in shares of Valero Energy by 2.3% during the 3rd quarter. Legal & General Group Plc now owns 1,904,181 shares of the oil and gas company's stock worth $324,206,000 after acquiring an additional 43,237 shares during the period. Finally, Arrowstreet Capital Limited Partnership purchased a new position in shares of Valero Energy during the 3rd quarter worth $275,239,000. Hedge funds and other institutional investors own 78.69% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on VLO shares. Wolfe Research reiterated an "underperform" rating and set a $203.00 price target on shares of Valero Energy in a report on Tuesday, April 21st. Morgan Stanley raised their price objective on Valero Energy from $182.00 to $222.00 and gave the stock an "equal weight" rating in a research report on Friday, April 24th. BMO Capital Markets raised their price objective on Valero Energy from $230.00 to $270.00 and gave the stock an "outperform" rating in a research report on Monday, April 6th. Zacks Research raised Valero Energy from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 21st. Finally, TD Cowen raised their price objective on Valero Energy from $255.00 to $276.00 and gave the stock a "hold" rating in a research report on Monday, May 4th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $243.65.

Valero Energy Stock Down 1.1%

Shares of NYSE:VLO opened at $256.03 on Friday. The business has a 50-day moving average price of $244.66 and a 200 day moving average price of $209.79. The company has a current ratio of 1.58, a quick ratio of 1.15 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $76.02 billion, a price-to-earnings ratio of 18.61, a PEG ratio of 0.38 and a beta of 0.55. Valero Energy Corporation has a 12-month low of $127.83 and a 12-month high of $265.61.

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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.16 by $1.06. The firm had revenue of $32.38 billion during the quarter, compared to the consensus estimate of $31.38 billion. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.The company's quarterly revenue was up 7.0% on a year-over-year basis. During the same period last year, the company earned $0.89 EPS. Sell-side analysts expect that Valero Energy Corporation will post 26.51 EPS for the current year.

Valero Energy Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Thursday, May 21st will be given a $1.20 dividend. This represents a $4.80 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Thursday, May 21st. Valero Energy's payout ratio is currently 34.88%.

Key Stories Impacting Valero Energy

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

Insiders Place Their Bets

In other Valero Energy news, SVP Eric A. Fisher sold 8,311 shares of Valero Energy stock in a transaction dated Wednesday, March 11th. The stock was 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 of the company's stock, valued at $9,618,080.98. The trade was a 16.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.36% of the stock is currently owned by corporate 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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