Redwood Investment Management LLC Acquires New Holdings in Valero Energy Corporation $VLO

Key Points

• Redwood Investment Management acquired 4,554 Valero shares in the second quarter, worth approximately $1.19 million. Institutional investors collectively own 78.69% of Valero.
• Valero reported a strong quarter, with earnings of $12.54 per share beating estimates by $2.43 and revenue rising 48.8% year over year to $44.48 billion.
• The company declared a quarterly dividend of $1.20, equivalent to $4.80 annually and a 1.4% yield, while shares trade near their 52-week high amid favorable refining margins and rising analyst price targets.

Redwood Investment Management LLC bought a new stake in Valero Energy Corporation (NYSE:VLO - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 4,554 shares of the oil and gas company's stock, valued at approximately $1,186,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Whipplewood Advisors LLC lifted 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 worth $26,000 after purchasing an additional 102 shares during the last quarter. JPL Wealth Management LLC acquired a new stake in shares of Valero Energy in the third quarter worth $27,000. Financial Life Planners bought a new stake in shares of Valero Energy during the 1st quarter worth $28,000. Valued Wealth Advisors LLC grew its stake in Valero Energy by 134.0% in the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock valued at $29,000 after buying an additional 67 shares during the last quarter. Finally, Torren Management LLC bought a new position in Valero Energy in the 4th quarter worth $30,000. Institutional investors own 78.69% of the company's stock.

Insider Activity at Valero Energy

In other news, SVP Eric A. Fisher sold 7,500 shares of Valero Energy stock in a transaction that occurred on 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 sale, the senior vice president owned 19,742 shares of the company's stock, valued at approximately $5,294,212.14. This trade represents a 27.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.36% of the company's stock.

Valero Energy Stock Performance

NYSE:VLO opened at $348.67 on Thursday. The firm's 50-day moving average is $299.01 and its 200-day moving average is $257.39. The company has a market cap of $100.39 billion, a price-to-earnings ratio of 14.47, a PEG ratio of 0.22 and a beta of 0.55. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.23 and a current ratio of 1.64. Valero Energy Corporation has a 52-week low of $146.76 and a 52-week high of $353.00.

Valero Energy (NYSE:VLO - Get Free Report) last released its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, beating the consensus estimate of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The business had revenue of $44.48 billion during the quarter, compared to analysts' expectations of $39.47 billion. During the same quarter last year, the company earned $2.28 earnings per share. The firm's revenue was up 48.8% on a year-over-year basis. Equities research analysts anticipate that Valero Energy Corporation will post 40.62 earnings per share for the current year.

Valero Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, July 31st will be given a $1.20 dividend. The ex-dividend date is Friday, July 31st. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.4%. Valero Energy's dividend payout ratio (DPR) is currently 19.92%.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Strong refining environment supports earnings: Valero and Marathon Petroleum have more than doubled in 2026 as global refining margins surged amid supply disruptions. Barron’s reportedly sees additional upside for U.S. refiners if favorable market conditions persist. Marathon Petroleum and Valero Energy Have Exploded in 2026, But Barron’s Sees More Upside
• Positive Sentiment: Cash and balance-sheet strength may support shareholder returns: Analysts highlight Valero’s approximately $7.9 billion cash balance, low leverage, and history of capital returns. Refinery upgrades could improve future cash generation and provide flexibility for dividends, buybacks, or debt management. Will Valero’s Excess Cash Translate Into Higher Shareholder Returns?
• Positive Sentiment: Analyst and style-screen support remains favorable: Valero is being promoted as a growth, value, low-beta, and low-leverage idea. Zacks lists VLO among its Strong Buy growth stocks, while the average Wall Street recommendation is equivalent to Buy. Falling Treasury yields may also improve the appeal of financially resilient companies. Best Growth Stocks to Buy for August 25th
• Neutral Sentiment: Valero compares favorably with Marathon Petroleum: Marathon offers a lower valuation and MPLX exposure, but commentary favors Valero for its stronger balance sheet and share-price momentum. Marathon vs. Valero: Which Refining Stock Is the Better Buy Now?
• Negative Sentiment: Valuation creates downside risk: After substantial gains, including strong one- and three-month performance, some analysis questions whether Valero now trades above fair value. Investors may therefore become more sensitive to weaker refining margins or profit-taking. Is Valero Energy Fully Valued as Shares Trade Above Fair Value?

Analyst Ratings Changes

A number of equities research analysts have issued reports on VLO shares. Morgan Stanley upped their price target on shares of Valero Energy from $232.00 to $255.00 and gave the company an "equal weight" rating in a report on Friday, June 12th. Barclays increased their target price on Valero Energy from $279.00 to $323.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. The Goldman Sachs Group raised their target price on Valero Energy from $286.00 to $357.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. Citigroup lifted their price target on Valero Energy from $259.00 to $302.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 14th. Finally, Raymond James Financial upped their price target on Valero Energy from $300.00 to $340.00 and gave the stock a "strong-buy" rating in a report on Monday, July 13th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Valero Energy has an average rating of "Moderate Buy" and a consensus target price of $288.00.

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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