Valero Energy Corporation $VLO Stock: AIA Group Ltd Decreases Holdings

Key Points

• AIA Group cut its Valero stake by 52% in the third quarter, selling 28,589 shares and retaining 26,349 shares valued at about $10.2 million. Institutional investors and hedge funds collectively own 78.69% of the stock.
• Valero reported quarterly EPS of $23.90, beating estimates of $21.17, while revenue of $46.1 billion also topped forecasts and rose 43.3% year over year.
• Analyst sentiment is Moderate Buy, with an average price target of $380.47. Valero also declared a quarterly dividend of $1.20 per share, or $4.80 annualized.

AIA Group Ltd trimmed its holdings in shares of Valero Energy Corporation (NYSE:VLO - Free Report) by 52.0% in the third quarter, according to its most recent filing with the SEC. The firm owned 26,349 shares of the oil and gas company's stock after selling 28,589 shares during the period. AIA Group Ltd's holdings in Valero Energy were worth $10,213,000 as of its most recent filing with the SEC.

Several other institutional investors have also made changes to their positions in VLO. Bank of America Corp DE bought a new stake in shares of Valero Energy in the 2nd quarter valued at approximately $1,195,943,000. Amundi lifted its position in shares of Valero Energy by 45.3% during the 1st quarter. Amundi now owns 2,584,976 shares of the oil and gas company's stock worth $638,695,000 after buying an additional 806,018 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Valero Energy by 33.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,058,341 shares of the oil and gas company's stock valued at $536,074,000 after buying an additional 520,642 shares in the last quarter. Corient Private Wealth LP acquired a new stake in Valero Energy in the 2nd quarter valued at $59,917,000. Finally, Arrowstreet Capital Limited Partnership grew its position in Valero Energy by 18.4% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,842,339 shares of the oil and gas company's stock valued at $702,285,000 after acquiring an additional 442,177 shares during the period. 78.69% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. Erste Group Bank lowered Valero Energy from a "buy" rating to a "hold" rating in a research note on Thursday, August 27th. Jefferies Financial Group cut their price target on shares of Valero Energy from $401.00 to $394.00 and set a "hold" rating for the company in a report on Thursday, October 8th. The Goldman Sachs Group raised their price objective on shares of Valero Energy from $365.00 to $457.00 and gave the stock a "buy" rating in a report on Wednesday, September 23rd. UBS Group reiterated a "buy" rating and issued a $467.00 target price on shares of Valero Energy in a research note on Tuesday, October 6th. Finally, Barclays boosted their target price on Valero Energy from $441.00 to $443.00 and gave the stock an "overweight" rating in a report on Friday, October 23rd. Three research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $380.47.

Valero Energy Stock Performance

VLO stock opened at $387.16 on Wednesday. The company has a 50 day moving average price of $399.09 and a 200 day moving average price of $287.06. Valero Energy Corporation has a fifty-two week low of $159.90 and a fifty-two week high of $461.52. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.72 and a quick ratio of 1.33. The stock has a market capitalization of $111.47 billion, a PE ratio of 8.58, a price-to-earnings-growth ratio of 0.20 and a beta of 0.58.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 EPS for the quarter, beating analysts' consensus estimates of $21.17 by $2.73. The firm had revenue of $46.10 billion for the quarter, compared to analyst estimates of $42.71 billion. Valero Energy had a return on equity of 45.90% and a net margin of 8.44%. The business's quarterly revenue was up 43.3% compared to the same quarter last year. During the same period last year, the company earned $3.66 EPS. Analysts forecast that Valero Energy Corporation will post 57.42 EPS for the current year.

Valero Energy Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 21st. Investors of record on Tuesday, November 24th will be paid a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, November 24th. Valero Energy's payout ratio is 10.80%.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Valero plans to buy a former Houston refinery site from LyondellBasell for $320.5 million and restart 165,000 barrels per day of light-crude capacity by 2027. The acquisition could expand refining capacity and growth prospects, though the restart remains a future execution milestone. Valero to Acquire Houston Refining Site, Plans 165,000 BPD Restart
• Positive Sentiment: The board reaffirmed Valero’s quarterly dividend of $1.20 per share, supporting the stock’s income appeal. The article also characterizes the shares as potentially undervalued after their recent pullback. 11% Undervalued? Valero Energy Following Earnings And Dividend Decision
• Positive Sentiment: Valero was included in Zacks’ top growth-stock picks and in a roundup citing strong quarterly earnings, favorable refining conditions and improving growth prospects. These are supportive signals, though the selections are broad, list-based commentary. Best Growth Stocks to Buy for November 3rd
• Neutral Sentiment: Morgan Stanley raised its price target from $411 to $420 but maintained an “equal weight” rating, indicating a higher valuation view without a more bullish recommendation. Morgan Stanley price-target update
• Negative Sentiment: The dividend-and-valuation article notes that VLO had fallen 10.61% over the prior week and 6.11% over the prior month. That recent weakness could weigh on sentiment despite stronger longer-term returns and the announced refinery expansion. 11% Undervalued? Valero Energy Following Earnings And Dividend Decision

Valero Energy Company Profile

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company's primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.

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