Norges Bank Invests $1.11 Billion in Valero Energy Corporation $VLO

Key Points

• Norges Bank bought a new stake in Valero Energy in the fourth quarter, acquiring 6.83 million shares valued at about $1.11 billion. The position represented roughly 2.24% of Valero at the end of the period.
• Valero reported better-than-expected quarterly results, posting EPS of $4.22 versus $3.16 expected and revenue of $32.38 billion versus $31.38 billion expected. Revenue rose 7% year over year.
• The company also declared a quarterly dividend of $1.20 per share, equal to an annualized yield of about 2.0%. Analysts remain generally positive, with a consensus rating of Moderate Buy and an average price target of $243.65.

Norges Bank purchased a new position in shares of Valero Energy Corporation (NYSE:VLO - Free Report) in the fourth quarter, according to its most recent disclosure with the SEC. The firm purchased 6,828,073 shares of the oil and gas company's stock, valued at approximately $1,111,542,000. Norges Bank owned approximately 2.24% of Valero Energy at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. JPL Wealth Management LLC purchased a new stake in shares of Valero Energy during the 3rd quarter worth about $27,000. Torren Management LLC purchased a new stake in shares of Valero Energy during the 4th quarter worth about $30,000. Triumph Capital Management purchased a new stake in shares of Valero Energy during the 3rd quarter worth about $35,000. Physician Wealth Advisors Inc. raised its stake in shares of Valero Energy by 145.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 211 shares of the oil and gas company's stock worth $36,000 after purchasing an additional 125 shares in the last quarter. Finally, Accordant Advisory Group Inc raised its stake in shares of Valero Energy by 194.4% during the 4th quarter. Accordant Advisory Group Inc now owns 212 shares of the oil and gas company's stock worth $35,000 after purchasing an additional 140 shares in the last quarter. 78.69% of the stock is owned by hedge funds and other institutional investors.

Valero Energy Stock Performance

Shares of NYSE VLO opened at $245.08 on Friday. 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 business's 50 day moving average is $242.80 and its two-hundred day moving average is $207.03. The company has a market cap of $72.77 billion, a P/E ratio of 17.81, a P/E/G ratio of 0.36 and a beta of 0.58. Valero Energy Corporation has a 12 month low of $125.10 and a 12 month high of $263.75.

Valero Energy (NYSE:VLO - Get Free Report) last issued its quarterly earnings results 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. The company had revenue of $32.38 billion for 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 revenue for the quarter was up 7.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.89 EPS. On average, equities analysts expect that Valero Energy Corporation will post 26.51 EPS for the current year.

Valero Energy Announces Dividend

The firm also recently declared 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 2.0%. The ex-dividend date of this dividend is Thursday, May 21st. Valero Energy's payout ratio is currently 34.88%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Wells Fargo & Company raised their price target on Valero Energy from $220.00 to $292.00 and gave the stock an "overweight" rating in a research note on Tuesday, March 31st. Citigroup raised their price objective on Valero Energy from $246.00 to $259.00 and gave the company a "neutral" rating in a research note on Friday, May 1st. Morgan Stanley raised their price objective on Valero Energy from $182.00 to $222.00 and gave the company an "equal weight" rating in a research note on Friday, April 24th. BMO Capital Markets raised their price objective on Valero Energy from $230.00 to $270.00 and gave the company an "outperform" rating in a research note on Monday, April 6th. Finally, UBS Group raised their price objective on Valero Energy from $215.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday, April 2nd. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Valero Energy presently has a consensus rating of "Moderate Buy" and an average target price of $243.65.

Insider Buying and Selling

In other Valero Energy news, SVP Eric A. Fisher sold 8,311 shares of Valero Energy stock in a transaction that occurred on 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 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.36% of the stock is currently owned by corporate insiders.

Valero Energy Company 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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