Valero Energy (NYSE:VLO) Reaches New 12-Month High Following Analyst Upgrade

Key Points

• Valero Energy reached a new 52-week high after Bank of America raised its price target from $395 to $414, though the firm maintained a neutral rating. Shares traded as high as $419.45.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy”; however, the average price target of $348.81 is below the current share price.
• Valero reported strong quarterly results, posting $12.54 in earnings per share and $44.48 billion in revenue, while institutional investors own approximately 78.69% of the company.

Valero Energy Corporation (NYSE:VLO - Get Free Report)'s stock price hit a new 52-week high on Monday after Bank of America raised their price target on the stock from $395.00 to $414.00. Bank of America currently has a neutral rating on the stock. Valero Energy traded as high as $419.45 and last traded at $419.2580, with a volume of 1095176 shares changing hands. The stock had previously closed at $406.30.

VLO has been the topic of several other research reports. TD Cowen lifted their price target on shares of Valero Energy from $338.00 to $350.00 and gave the stock a "hold" rating in a research note on Monday, August 3rd. Erste Group Bank downgraded Valero Energy from a "buy" rating to a "hold" rating in a report on Thursday, August 27th. Weiss Ratings raised Valero Energy from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 6th. Raymond James Financial increased their price objective on Valero Energy from $350.00 to $450.00 and gave the stock a "strong-buy" rating in a report on Monday, September 14th. Finally, Barclays lifted 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, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have given 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 price target of $348.81.

Institutional Trading of Valero Energy

A number of large investors have recently added to or reduced their stakes in the stock. Moore Capital Management LP bought a new position in shares of Valero Energy during the second quarter valued at approximately $13,193,000. Fort Washington Investment Advisors Inc. OH boosted its position in Valero Energy by 4.2% during 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 in the last quarter. Dymon Asia Capital Singapore PTE. LTD. purchased a new stake in Valero Energy during the 4th quarter valued at about $2,268,000. TrueMark Investments LLC purchased a new stake in Valero Energy during the 1st quarter worth approximately $8,921,000. Finally, Jennison Associates LLC raised its stake in Valero Energy by 377.1% during the first quarter. Jennison Associates LLC now owns 413,437 shares of the oil and gas company's stock worth $102,152,000 after purchasing an additional 326,777 shares during the period. Hedge funds and other institutional investors own 78.69% of the company's stock.

Valero Energy Stock Performance

The firm's 50 day moving average is $356.53 and its two-hundred day moving average is $290.28. The stock has a market capitalization of $120.90 billion, a PE ratio of 17.42, a P/E/G ratio of 0.27 and a beta of 0.59. 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 (NYSE:VLO - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 EPS for the quarter, beating the consensus estimate of $10.11 by $2.43. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The company had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. During the same period last year, the company posted $2.28 earnings per share. The firm's revenue was up 48.8% compared to the same quarter last year. As a group, research analysts predict that Valero Energy Corporation will post 49.17 earnings per share for the current year.

Valero Energy Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, August 31st. Stockholders of record on Friday, July 31st were paid a $1.20 dividend. The ex-dividend date was Friday, July 31st. This represents a $4.80 annualized dividend and a dividend yield of 1.1%. Valero Energy's dividend payout ratio (DPR) is currently 19.92%.

Valero Energy Company Profile

Valero Energy Corporation is an international petroleum refining, renewable fuels and marketing company headquartered in San Antonio, Texas. Founded in 1980, the company processes crude oil and other feedstocks into transportation fuels and other products used by commercial, industrial and consumer customers.

Valero's refined products include gasoline, diesel, jet fuel, asphalt, lubricants and petrochemical feedstocks. The company also produces and markets ethanol and renewable diesel, including through its Diamond Green Diesel joint venture with Darling Ingredients.

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