Valero Energy Corporation $VLO Stock: Pinnacle Associates Ltd. Cuts Position

Key Points

• Pinnacle Associates cut its Valero Energy position by 4.9% in the third quarter, selling 4,264 shares and retaining 82,232 shares valued at approximately $31.9 million. Institutional investors collectively own 78.69% of VLO.
• Valero’s third-quarter earnings report, scheduled for October 22, is the key near-term catalyst. Higher refining margins and tight fuel markets are supporting optimism, though DBS Bank downgraded the stock to Hold, citing limited upside after its rally.
• VLO opened at $433.85, near its 52-week high of $461.52, while analysts maintain a Moderate Buy consensus with an average price target of $382.62. The company recently exceeded earnings expectations, reporting $12.54 in EPS versus a $10.11 consensus estimate.

Pinnacle Associates Ltd. decreased its position in shares of Valero Energy Corporation (NYSE:VLO - Free Report) by 4.9% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 82,232 shares of the oil and gas company's stock after selling 4,264 shares during the period. Pinnacle Associates Ltd.'s holdings in Valero Energy were worth $31,874,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of VLO. Integrated Advisors Network LLC lifted its position in shares of Valero Energy by 3.2% during the third quarter. Integrated Advisors Network LLC now owns 1,529 shares of the oil and gas company's stock worth $593,000 after purchasing an additional 48 shares in the last quarter. Diversify Advisory Services LLC boosted its stake in shares of Valero Energy by 103.6% in the third quarter. Diversify Advisory Services LLC now owns 7,820 shares of the oil and gas company's stock valued at $3,031,000 after purchasing an additional 3,979 shares during the period. Miller Financial Services LLC acquired a new position in shares of Valero Energy in the third quarter valued at approximately $213,000. DUTCH ASSET Corp grew its holdings in shares of Valero Energy by 9.0% in the third quarter. DUTCH ASSET Corp now owns 1,018 shares of the oil and gas company's stock valued at $395,000 after purchasing an additional 84 shares in the last quarter. Finally, 55 North Private Wealth LLC grew its holdings in shares of Valero Energy by 7.3% in the third quarter. 55 North Private Wealth LLC now owns 1,787 shares of the oil and gas company's stock valued at $693,000 after purchasing an additional 121 shares in 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: Investors are optimistic ahead of Valero’s third-quarter results, scheduled before the market opens on October 22. Higher refining margins are expected to support profitability and could reinforce the company’s strong earnings momentum. Valero Energy's Q3 Earnings Approach: Higher Refining Margins Fuel Optimism
• Positive Sentiment: Valero was included in Zacks’ Rank #1, or “Strong Buy,” growth-stock list. The designation may attract additional interest, particularly as the company trades well above its longer-term moving averages and approaches its 52-week high. Best Growth Stocks to Buy for October 19th
• Positive Sentiment: A new $8 billion federal program to help farmers offset surging diesel costs highlights tight fuel markets and supply disruptions linked to Iran. Elevated diesel prices can improve refinery economics for Valero, although the longer-term effect depends on demand and the duration of the disruption. Trump announces $8B bailout for farmers to cover diesel cost surge
• Neutral Sentiment: Preview reports are focusing on estimates for Valero’s third-quarter revenue, earnings and operating metrics, making the October 22 release the key near-term catalyst. Valero previously exceeded quarterly earnings expectations, raising the bar for another beat. Insights Into Valero Energy Q3
• Negative Sentiment: DBS Bank downgraded Valero to Hold while assigning a $436 price target, indicating limited near-term upside after the stock’s substantial rally. The call could temper bullish sentiment ahead of earnings. DBS Bank Downgrades Valero Energy to Hold

Wall Street Analyst Weigh In

VLO has been the topic of several recent research reports. Jefferies Financial Group cut their target price on shares of Valero Energy from $401.00 to $394.00 and set a "hold" rating on the stock in a research note on Thursday, October 8th. Citigroup raised their price target on shares of Valero Energy from $302.00 to $485.00 and gave the company a "neutral" rating in a research report on Tuesday, October 13th. TD Cowen raised their price target on shares of Valero Energy from $338.00 to $350.00 and gave the company a "hold" rating in a research report on Monday, August 3rd. Weiss Ratings upgraded shares of Valero Energy from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, October 8th. Finally, Zacks Research raised Valero Energy from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $382.62.

Valero Energy Price Performance

VLO stock opened at $433.85 on Wednesday. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. The firm has a market capitalization of $124.92 billion, a P/E ratio of 18.00, a P/E/G ratio of 0.28 and a beta of 0.59. The business's 50-day moving average is $387.70 and its two-hundred day moving average is $306.74. Valero Energy Corporation has a 1 year low of $156.26 and a 1 year high of $461.52.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $44.48 billion during the quarter, compared to analysts' expectations of $39.47 billion. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%. The business's quarterly revenue was up 48.8% compared to the same quarter last year. During the same quarter last year, the business posted $2.28 EPS. Analysts anticipate that Valero Energy Corporation will post 51.77 earnings per share for the current fiscal year.

About Valero Energy

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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