Valero Energy Corporation $VLO Shares Acquired by Centaurus Financial Inc.

Key Points

• Centaurus Financial increased its Valero Energy position by 147.7% in the first quarter, owning 6,067 shares worth approximately $1.5 million. Institutional investors and hedge funds collectively own 78.69% of VLO.
• Valero reported a major second-quarter earnings beat, with adjusted EPS of $12.54 and revenue of $44.48 billion, driven by stronger refining margins, fuel demand and exports. Renewable fuels and disciplined capital allocation also supported results.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and several firms raising price targets. Valero also reaffirmed its quarterly dividend of $1.20 per share, while investors face risks from potentially normalizing refining margins and biofuel regulatory challenges.

Centaurus Financial Inc. boosted its position in Valero Energy Corporation (NYSE:VLO - Free Report) by 147.7% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 6,067 shares of the oil and gas company's stock after buying an additional 3,618 shares during the quarter. Centaurus Financial Inc.'s holdings in Valero Energy were worth $1,499,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of VLO. Bull Harbor Capital LLC acquired a new stake in shares of Valero Energy during the 1st quarter valued at approximately $336,000. Encore Global Management LP acquired a new position in Valero Energy in the first quarter worth $4,892,000. Opal Capital LLC acquired a new position in Valero Energy in the first quarter worth $8,921,000. Sunbelt Securities Inc. increased its stake in Valero Energy by 1.2% during the first quarter. Sunbelt Securities Inc. now owns 17,700 shares of the oil and gas company's stock valued at $4,373,000 after purchasing an additional 212 shares during the last quarter. Finally, Amundi increased its stake in Valero Energy by 45.3% during the first quarter. Amundi now owns 2,584,976 shares of the oil and gas company's stock valued at $638,695,000 after purchasing an additional 806,018 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company's stock.

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

Wall Street Analyst Weigh In

VLO has been the topic of a number of recent research reports. TD Cowen raised their price target on shares of Valero Energy from $292.00 to $338.00 and gave the stock a "hold" rating in a research report on Tuesday, July 21st. Barclays boosted their price objective on shares of Valero Energy from $279.00 to $323.00 and gave the company an "overweight" rating in a research report on Friday. Piper Sandler reiterated an "overweight" rating and set a $329.00 price objective on shares of Valero Energy in a research note on Thursday, July 23rd. Raymond James Financial raised their target price on shares of Valero Energy from $300.00 to $340.00 and gave the stock a "strong-buy" rating in a report on Monday, July 13th. Finally, Zacks Research downgraded Valero Energy from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, eleven have given 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 Price Performance

Shares of NYSE VLO opened at $312.89 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.15. The firm has a market capitalization of $92.91 billion, a PE ratio of 12.98, a P/E/G ratio of 0.20 and a beta of 0.55. Valero Energy Corporation has a 1-year low of $130.78 and a 1-year high of $320.24. The business's fifty day moving average price is $270.62 and its two-hundred day moving average price is $238.69.

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

Valero Energy Dividend Announcement

The company 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. The ex-dividend date is Friday, July 31st. This represents a $4.80 annualized dividend and a yield of 1.5%. Valero Energy's dividend payout ratio (DPR) is currently 19.92%.

Insider Transactions at Valero Energy

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 shares were sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the completion of the transaction, the senior vice president directly owned 19,742 shares of the company's stock, valued at $5,294,212.14. The trade was a 27.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.36% of the stock is owned by 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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