Prudential PLC Grows Position in Valero Energy Corporation $VLO

Key Points

• Prudential PLC increased its stake in Valero Energy by 66.5% in the fourth quarter, ending with 13,322 shares valued at about $2.17 million. Several other hedge funds also added or initiated positions, and institutional investors now own 78.69% of the company.
• Valero posted stronger-than-expected quarterly results, reporting EPS of $4.22 versus estimates of $3.16 and revenue of $32.38 billion versus expectations of $31.38 billion. Revenue rose 7% year over year, and analysts now forecast full-year EPS of 26.51.
• The company continues to reward shareholders and attract analyst attention, with a quarterly dividend of $1.20 per share due June 23 and a 1.9% annualized yield. Analysts currently rate the stock a Moderate Buy on average, with an average price target of $243.65.

Prudential PLC lifted its position in shares of Valero Energy Corporation (NYSE:VLO - Free Report) by 66.5% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 13,322 shares of the oil and gas company's stock after purchasing an additional 5,322 shares during the quarter. Prudential PLC's holdings in Valero Energy were worth $2,169,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently bought and sold shares of VLO. JPL Wealth Management LLC acquired a new position in Valero Energy during the third quarter valued at approximately $27,000. Torren Management LLC purchased a new position in shares of Valero Energy in the 4th quarter valued at $30,000. AXS Investments LLC purchased a new position in shares of Valero Energy in the 4th quarter valued at $32,000. Bruce G. Allen Investments LLC lifted its holdings in shares of 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 acquiring an additional 51 shares in the last quarter. Finally, Triumph Capital Management acquired a new position in shares of Valero Energy during the 3rd quarter valued at $35,000. Institutional investors and hedge funds own 78.69% of the company's stock.

Valero Energy Trading Up 0.1%

Shares of VLO opened at $256.03 on Monday. Valero Energy Corporation has a one year low of $127.83 and a one year high of $265.61. The stock has a 50-day moving average price of $244.66 and a 200 day moving average price of $210.01. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.15 and a current ratio of 1.58. The company has a market capitalization of $76.02 billion, a P/E ratio of 18.61, a P/E/G ratio of 0.38 and a beta of 0.55.

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

Valero Energy Dividend Announcement

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

Analysts Set New Price Targets

Several brokerages recently issued reports on VLO. Wolfe Research reiterated an "underperform" rating and issued a $203.00 price target on shares of Valero Energy in a report on Tuesday, April 21st. Wall Street Zen raised Valero Energy from a "buy" rating to a "strong-buy" rating in a research report on Saturday, April 4th. The Goldman Sachs Group increased their target price on Valero Energy from $203.00 to $237.00 and gave the company a "buy" rating in a research note on Thursday, March 12th. Mizuho boosted their price target on Valero Energy from $222.00 to $289.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 27th. Finally, Morgan Stanley upped their price target on Valero Energy from $182.00 to $222.00 and gave the stock an "equal weight" rating in a report on Friday, April 24th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average 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 the firm's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $227.69, for a total transaction 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. This trade represents a 16.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.36% of the stock is owned by company insiders.

Valero Energy News Roundup

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

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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