Valero Energy (NYSE:VLO) Shares Up 1.2% - Should You Buy?

Key Points

• Valero shares rose 1.2% to about $379.58 in Friday’s trading, while volume was 34% below its average.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $406.32; recent targets ranged from $414 to $496, alongside some Hold and Sell ratings.
• Valero beat quarterly earnings and revenue estimates, reporting EPS of $23.90 and revenue of $46.10 billion. It also declared a quarterly dividend of $1.20 per share, equivalent to a 1.3% yield.

Valero Energy Corporation (NYSE:VLO - Get Free Report)'s share price rose 1.2% during mid-day trading on Friday. The stock traded as high as $380.67 and last traded at $379.5840. Approximately 2,178,768 shares changed hands during trading, a decline of 34% from the average session volume of 3,303,816 shares. The stock had previously closed at $374.95.

Analysts Set New Price Targets

Several equities research analysts have commented on VLO shares. Morgan Stanley upped their price target on shares of Valero Energy from $411.00 to $420.00 and gave the company an "equal weight" rating in a report on Monday, November 2nd. The Goldman Sachs Group lifted their price objective on Valero Energy from $457.00 to $496.00 and gave the company a "buy" rating in a research note on Friday, October 9th. Zacks Research raised Valero Energy from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 4th. Barclays boosted their price objective on Valero Energy from $441.00 to $443.00 and gave the company an "overweight" rating in a report on Friday, October 23rd. Finally, Bank of America raised their target price on Valero Energy from $395.00 to $414.00 and gave the stock a "neutral" rating in a report on Friday, October 2nd. Three equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Valero Energy currently has an average rating of "Moderate Buy" and an average target price of $406.32.

Valero Energy Stock Performance

The firm's 50 day moving average is $399.72 and its 200-day moving average is $293.11. The stock has a market capitalization of $105.86 billion, a price-to-earnings ratio of 8.54, a PEG ratio of 0.19 and a beta of 0.58. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.33 and a current ratio of 1.72.

Valero Energy (NYSE:VLO - Get Free Report) last released its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share for the quarter, beating analysts' consensus estimates of $21.17 by $2.73. The company had revenue of $46.10 billion during the quarter, compared to analysts' expectations of $42.71 billion. Valero Energy had a net margin of 8.44% and a return on equity of 45.90%. The firm's revenue for the quarter was up 43.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.66 earnings per share. Analysts forecast that Valero Energy Corporation will post 58.33 earnings per share for the current fiscal year.

Valero Energy Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 21st. Investors of record on Tuesday, November 24th will be issued a $1.20 dividend. The ex-dividend date of this dividend is Tuesday, November 24th. This represents a $4.80 dividend on an annualized basis and a yield of 1.3%. Valero Energy's dividend payout ratio is presently 10.80%.

Hedge Funds Weigh In On Valero Energy

Hedge funds have recently bought and sold shares of the business. New World Advisors LLC lifted its holdings in Valero Energy by 10.7% during the third quarter. New World Advisors LLC now owns 1,088 shares of the oil and gas company's stock valued at $422,000 after purchasing an additional 105 shares in the last quarter. State Board of Administration of Florida Retirement System increased its stake in shares of Valero Energy by 7.2% during the third quarter. State Board of Administration of Florida Retirement System now owns 266,381 shares of the oil and gas company's stock worth $103,252,000 after purchasing an additional 17,901 shares in the last quarter. 49 Wealth Management LLC purchased a new stake in shares of Valero Energy during the third quarter worth about $354,000. Insigneo Advisory Services LLC acquired a new position in shares of Valero Energy during the 3rd quarter worth about $327,000. Finally, Banco de Sabadell S.A raised its position in shares of Valero Energy by 0.3% during the 3rd quarter. Banco de Sabadell S.A now owns 13,520 shares of the oil and gas company's stock worth $5,238,000 after purchasing an additional 38 shares during the last quarter. Hedge funds and other institutional investors own 78.69% of the company's stock.

Valero Energy Company Profile

Valero Energy Corporation is an international refiner and producer of transportation fuels and other petroleum products, headquartered in San Antonio, Texas. Its refining business processes crude oil and other feedstocks into products such as gasoline, diesel, jet fuel, asphalt and petrochemical feedstocks. The company markets and distributes fuels to wholesale customers and through branded distribution networks. Its refining operations span the United States, Canada and the United Kingdom, with products serving customers in North America and other markets.

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