Valero Energy (NYSE:VLO) Hits New 1-Year High - Should You Buy?

Key Points

• Valero Energy shares hit a new 52-week high, trading around $381.60 after closing at $370.72. The stock has a “Moderate Buy” consensus rating, although its $296.18 average analyst price target is below the current price.
• Valero reported strong quarterly results, with EPS of $12.54 versus the $10.11 consensus and revenue of $44.48 billion, up 48.8% year over year.
• The company maintains a quarterly dividend of $1.20, or $4.80 annually and a 1.3% yield. Its payout ratio is relatively low at 19.92%, while institutional investors own 78.69% of outstanding shares.

Valero Energy Corporation (NYSE:VLO - Get Free Report) shares reached a new 52-week high on Tuesday . The company traded as high as $381.46 and last traded at $381.5960, with a volume of 315686 shares changing hands. The stock had previously closed at $370.72.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on VLO. Barclays upped their price objective on shares of Valero Energy from $279.00 to $323.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Zacks Research raised shares of Valero Energy from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 4th. Morgan Stanley upped their price target on shares of Valero Energy from $232.00 to $255.00 and gave the stock an "equal weight" rating in a report on Friday, June 12th. Piper Sandler increased their price target on Valero Energy from $329.00 to $435.00 and gave the company an "overweight" rating in a research note on Thursday, September 3rd. Finally, Wells Fargo & Company boosted their price objective on Valero Energy from $356.00 to $389.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 1st. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Valero Energy currently has a consensus rating of "Moderate Buy" and a consensus target price of $296.18.

Valero Energy Stock Up 2.5%

The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.23 and a current ratio of 1.64. The stock's fifty day simple moving average is $317.34 and its two-hundred day simple moving average is $266.53. The stock has a market capitalization of $109.43 billion, a P/E ratio of 15.77, a price-to-earnings-growth ratio of 0.42 and a beta of 0.57.

Valero Energy (NYSE:VLO - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The oil and gas company reported $12.54 EPS for the quarter, topping analysts' consensus estimates of $10.11 by $2.43. The company had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. Valero Energy's revenue was up 48.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.28 earnings per share. As a group, research analysts expect that Valero Energy Corporation will post 41.15 EPS for the current fiscal year.

Valero Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Friday, July 31st were paid a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend was Friday, July 31st. Valero Energy's payout ratio is currently 19.92%.

Insider Buying and Selling

In other Valero Energy news, SVP Eric Fisher sold 7,500 shares of the stock in a transaction that occurred on 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 sale, the senior vice president owned 19,742 shares of the company's stock, valued at approximately $5,294,212.14. This represents a 27.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.36% of the stock is owned by insiders.

Hedge Funds Weigh In On Valero Energy

A number of hedge funds have recently bought and sold shares of the company. Cornerstone Financial Management LLC boosted its position in shares of Valero Energy by 57.6% during the 2nd quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company's stock valued at $27,000 after purchasing an additional 38 shares in the last quarter. Whipplewood Advisors LLC boosted its holdings in shares of Valero Energy by 3,400.0% during the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock worth $26,000 after buying an additional 102 shares in the last quarter. Financial Life Planners acquired a new stake in shares of Valero Energy during the 1st quarter worth approximately $28,000. Valued Wealth Advisors LLC grew its position in shares of Valero Energy by 134.0% during the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock worth $29,000 after buying an additional 67 shares during the period. Finally, Global Assets Advisory LLC bought a new stake in shares of Valero Energy in the 1st quarter valued at $33,000. Institutional investors own 78.69% of the company's stock.

About Valero Energy

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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