Valero Energy Corporation $VLO Stock Holdings Lowered by Sterling Capital Management LLC

Key Points

• Sterling Capital Management cut its Valero Energy stake by 27.3% in the third quarter, selling 16,852 shares and retaining 44,824 shares valued at approximately $17.4 million. Institutional investors and hedge funds collectively own 78.69% of VLO.
• Valero delivered strong third-quarter results: adjusted earnings per share reached $23.90 versus the $21.17 consensus, while revenue rose 43.3% year over year to $46.1 billion, driven by higher refining margins.
• Analyst sentiment remains moderately bullish but divided. Wells Fargo and Barclays maintained overweight ratings with targets of $489 and $443, respectively, while other analysts cited valuation concerns and the cyclical nature of refining profits.

Sterling Capital Management LLC reduced its holdings in shares of Valero Energy Corporation (NYSE:VLO - Free Report) by 27.3% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 44,824 shares of the oil and gas company's stock after selling 16,852 shares during the quarter. Sterling Capital Management LLC's holdings in Valero Energy were worth $17,374,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. Moore Capital Management LP bought a new position in Valero Energy during the second quarter worth $13,193,000. Fort Washington Investment Advisors Inc. OH raised its position in shares of Valero Energy by 4.2% in the first quarter. Fort Washington Investment Advisors Inc. OH now owns 192,430 shares of the oil and gas company's stock valued at $47,546,000 after purchasing an additional 7,702 shares during the period. QRG Capital Management Inc. raised its position in shares of Valero Energy by 5.5% in the second quarter. QRG Capital Management Inc. now owns 58,558 shares of the oil and gas company's stock valued at $15,251,000 after purchasing an additional 3,037 shares during the period. Jennison Associates LLC lifted its stake in shares of Valero Energy by 377.1% during the 1st quarter. Jennison Associates LLC now owns 413,437 shares of the oil and gas company's stock worth $102,152,000 after buying an additional 326,777 shares during the last quarter. Finally, Journey Advisory Group LLC lifted its stake in shares of Valero Energy by 23.3% during the 1st quarter. Journey Advisory Group LLC now owns 21,676 shares of the oil and gas company's stock worth $5,356,000 after buying an additional 4,098 shares during the last quarter. 78.69% of the stock is owned by institutional investors and hedge funds.

Valero Energy News Summary

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

• Positive Sentiment: Exceptional Q3 earnings: Valero reported adjusted EPS of $23.90, well above the roughly $21.17 consensus, while revenue increased 43.3% year over year to $46.1 billion. Net income surged to $6.8 billion from $1.1 billion, driven primarily by sharply higher refining margins. Valero Energy Reports Third Quarter 2026 Results
• Positive Sentiment: Favorable operating outlook: Management highlighted tight fuel markets, resilient demand, record ethanol production, improving renewable diesel and ethanol profitability, and expectations that fuel margins could rise again. The company also cited $9.8 billion in cash and disciplined capital spending, supporting financial flexibility. Valero Q3 Earnings Call Highlights Refining and Cash Strength
• Positive Sentiment: Several analysts remain constructive: Barclays raised its price target to $443 and retained an overweight rating, while Wells Fargo lifted its target to $489 and also maintained an overweight rating. Citigroup increased its target to $490, although it kept a neutral rating.
• Neutral Sentiment: Refining-sector momentum is strong but cyclical: Coverage emphasizes that Valero and other refiners are benefiting from tight fuel inventories and unusually high margins. Those conditions support near-term earnings but may be vulnerable to changes in crude prices, fuel demand, supply, or refinery utilization. Valero kicks off refiner results with record quarterly profit on higher margins
• Negative Sentiment: Valuation and analyst disagreement are weighing on sentiment: Freedom Broker reaffirmed a sell rating and assigned a $276 price target, implying substantial downside from the referenced trading level. TD Cowen raised its target to $400 but maintained a hold rating, underscoring concerns that much of the refining upside may already be reflected in VLO’s valuation.

Valero Energy Stock Down 1.7%

Shares of NYSE VLO traded down $7.09 during midday trading on Friday, hitting $419.19. 2,401,619 shares of the stock traded hands, compared to its average volume of 2,548,150. 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 one year low of $159.90 and a one year high of $461.52. The business has a 50 day moving average price of $393.03 and a two-hundred day moving average price of $310.15. The company has a market cap of $120.70 billion, a PE ratio of 9.43, a P/E/G ratio of 0.25 and a beta of 0.59.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share for the quarter, beating the consensus estimate of $21.17 by $2.73. Valero Energy had a return on equity of 47.50% and a net margin of 8.44%. The firm had revenue of $46.10 billion for the quarter, compared to analysts' expectations of $42.71 billion. During the same period in the prior year, the business posted $3.66 earnings per share. The company's revenue was up 43.3% on a year-over-year basis. On average, equities analysts predict that Valero Energy Corporation will post 52.55 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Weiss Ratings upgraded Valero Energy from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, October 8th. Mizuho upped their price objective on Valero Energy from $300.00 to $434.00 and gave the company a "neutral" rating in a research note on Thursday, October 8th. Raymond James Financial raised their price objective on shares of Valero Energy from $350.00 to $450.00 and gave the company a "strong-buy" rating in a report on Monday, September 14th. Wells Fargo & Company lifted their target price on shares of Valero Energy from $485.00 to $489.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, Barclays upped their price target on shares of Valero Energy from $441.00 to $443.00 and gave the company an "overweight" rating in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $379.94.

Valero Energy 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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