Valero Energy (NYSE:VLO) Sets New 52-Week High - Should You Buy?

Key Points

• Valero shares reached a new 52-week high, trading around $360.70 and rising 1.8%; however, the consensus price target of $288 is well below the current price. Analysts maintain a “Moderate Buy” consensus, with ratings ranging from Strong Buy to Sell.
• Valero reported a strong quarter, posting $12.54 in EPS versus the $10.11 estimate and $44.48 billion in revenue, up 48.8% year over year. Analysts expect approximately $40.70 in EPS for the current fiscal year.
• The company declared a quarterly dividend of $1.20, or $4.80 annualized, representing a 1.3% yield and a 19.92% payout ratio. Institutional investors own approximately 78.69% of Valero’s outstanding shares.

Shares of Valero Energy Corporation (NYSE:VLO - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $359.89 and last traded at $360.7020, with a volume of 31198 shares changing hands. The stock had previously closed at $352.36.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on VLO shares. UBS Group lifted their price target on Valero Energy from $280.00 to $355.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Citigroup upped their price objective on Valero Energy from $259.00 to $302.00 and gave the company a "neutral" rating in a research note on Tuesday, July 14th. The Goldman Sachs Group raised their price objective on Valero Energy from $286.00 to $357.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Morgan Stanley boosted their target price on Valero Energy from $232.00 to $255.00 and gave the stock an "equal weight" rating in a report on Friday, June 12th. Finally, Erste Group Bank cut Valero Energy from a "buy" rating to a "hold" rating in a research note on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $288.00.

Valero Energy Stock Up 1.8%

The firm has a market cap of $103.33 billion, a P/E ratio of 14.90, a P/E/G ratio of 0.23 and a beta of 0.55. The firm's fifty day moving average is $303.55 and its 200 day moving average is $259.47. 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 results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, beating the consensus estimate of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The firm had revenue of $44.48 billion for the quarter, compared to analysts' expectations of $39.47 billion. During the same period in the prior year, the firm earned $2.28 EPS. The business's revenue was up 48.8% on a year-over-year basis. As a group, equities research analysts anticipate that Valero Energy Corporation will post 40.7 earnings per share for the current fiscal year.

Valero Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be paid a $1.20 dividend. The ex-dividend date is Friday, July 31st. This represents a $4.80 annualized dividend and a yield of 1.3%. Valero Energy's payout ratio is 19.92%.

Insider Buying and Selling

In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the transaction, the senior vice president owned 19,742 shares in the company, valued at $5,294,212.14. This trade represents a 27.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.36% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Valero Energy

Several institutional investors and hedge funds have recently modified their holdings of VLO. Cornerstone Financial Management LLC boosted its position in Valero Energy by 57.6% during the second quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company's stock valued at $27,000 after buying an additional 38 shares during the period. V Square Quantitative Management LLC grew its stake in shares of Valero Energy by 0.6% during the first quarter. V Square Quantitative Management LLC now owns 6,670 shares of the oil and gas company's stock valued at $1,648,000 after buying an additional 42 shares during the last quarter. M.E. Allison & CO. Inc. increased its holdings in shares of Valero Energy by 5.8% in the second quarter. M.E. Allison & CO. Inc. now owns 916 shares of the oil and gas company's stock worth $239,000 after buying an additional 50 shares during the period. Ridgecrest Wealth Partners LLC increased its holdings in shares of Valero Energy by 5.0% in the second quarter. Ridgecrest Wealth Partners LLC now owns 1,054 shares of the oil and gas company's stock worth $275,000 after buying an additional 50 shares during the period. Finally, CYBER HORNET ETFs LLC lifted its stake in shares of Valero Energy by 5.5% in the 4th quarter. CYBER HORNET ETFs LLC now owns 975 shares of the oil and gas company's stock valued at $159,000 after acquiring an additional 51 shares during the last quarter. 78.69% of the stock is currently owned by institutional investors and hedge funds.

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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