Valero Energy Corporation $VLO Shares Bought by Sapient Capital LLC

Key Points

• Sapient Capital increased its Valero Energy position by 724.2% in the first quarter, acquiring 30,192 additional shares for a total stake worth approximately $8.5 million. Institutional investors and hedge funds collectively own 78.69% of VLO.
• Valero reported a strong second quarter, with EPS of $12.54 beating estimates of $10.11 and revenue rising 48.8% year over year to $44.48 billion, driven by higher refining margins and fuel demand.
• The company maintained its $1.20 quarterly dividend, equivalent to a $4.80 annual payout and a 1.5% yield. Analysts broadly remain positive, with a consensus rating of “Moderate Buy,” though the stock’s rally may leave less upside if refining margins normalize.

Sapient Capital LLC grew its position in shares of Valero Energy Corporation (NYSE:VLO - Free Report) by 724.2% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 34,361 shares of the oil and gas company's stock after purchasing an additional 30,192 shares during the period. Sapient Capital LLC's holdings in Valero Energy were worth $8,491,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the company. Woodline Partners LP grew its holdings in Valero Energy by 40.7% during the 1st quarter. Woodline Partners LP now owns 26,747 shares of the oil and gas company's stock valued at $3,532,000 after purchasing an additional 7,735 shares in the last quarter. Sivia Capital Partners LLC increased its stake in Valero Energy by 13.0% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,929 shares of the oil and gas company's stock worth $259,000 after buying an additional 222 shares during the period. Gamco Investors INC. ET AL acquired a new position in Valero Energy in the 2nd quarter worth $528,000. Sei Investments Co. lifted its holdings in Valero Energy by 11.3% in the 2nd quarter. Sei Investments Co. now owns 269,043 shares of the oil and gas company's stock worth $36,165,000 after buying an additional 27,291 shares in the last quarter. Finally, Treasurer of the State of North Carolina boosted its position in Valero Energy by 0.9% in the 2nd quarter. Treasurer of the State of North Carolina now owns 145,810 shares of the oil and gas company's stock valued at $19,600,000 after buying an additional 1,338 shares during the last quarter. 78.69% of the stock is owned by institutional investors and hedge funds.

Valero Energy Price Performance

Shares of VLO stock opened at $312.89 on Monday. The firm has a fifty day moving average of $270.62 and a two-hundred day moving average of $239.10. The firm has a market cap of $92.91 billion, a P/E 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 company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23.

Valero Energy (NYSE:VLO - Get Free Report) last issued its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $39.47 billion. During the same quarter in the prior year, the business posted $2.28 EPS. The company's revenue for the quarter was up 48.8% on a year-over-year basis. As a group, research analysts anticipate that Valero Energy Corporation will post 36.95 earnings per share for the current fiscal 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 paid a dividend of $1.20 per share. 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 is presently 19.92%.

Analysts Set New Price Targets

VLO has been the subject of several recent analyst reports. Barclays raised 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. Mizuho increased their price target on Valero Energy from $222.00 to $289.00 and gave the company a "neutral" rating in a report on Wednesday, May 27th. Raymond James Financial raised their price objective on Valero Energy from $300.00 to $340.00 and gave the company a "strong-buy" rating in a research note on Monday, July 13th. TD Cowen lifted their price objective on Valero Energy from $292.00 to $338.00 and gave the stock a "hold" rating in a report on Tuesday, July 21st. Finally, Citigroup upped their target price on Valero Energy from $259.00 to $302.00 and gave the company a "neutral" rating in a research report on Tuesday, July 14th. 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 given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $277.47.

Insider Transactions at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the 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 transaction, the senior vice president owned 19,742 shares of the company's stock, valued at $5,294,212.14. This trade represents a 27.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.36% of the stock is owned by insiders.

Key Valero Energy News

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

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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