Valero Energy (NYSE:VLO) Shares Up 4.7% - Here's What Happened

Key Points

• Valero shares rose 4.7% to approximately $456.63 in Tuesday trading, with about 2.5 million shares changing hands.
• Analyst sentiment remains positive overall, with the stock carrying a consensus “Moderate Buy” rating, although the average price target of $365.19 is below its current price.
• Valero reported quarterly earnings of $12.54 per share, beating estimates by $2.43, while revenue increased 48.8% year over year to $44.48 billion. The company also paid a $1.20 quarterly dividend, equivalent to a 1.1% annual yield.

Shares of Valero Energy Corporation (NYSE:VLO - Get Free Report) shot up 4.7% during trading on Tuesday. The company traded as high as $457.20 and last traded at $456.6280. Approximately 2,499,547 shares were traded during mid-day trading, a decline of 25% from the average session volume of 3,332,752 shares. The stock had previously closed at $436.00.

Analysts Set New Price Targets

A number of research analysts recently weighed in on VLO shares. Barclays increased their price objective on shares of Valero Energy from $323.00 to $441.00 and gave the company an "overweight" rating in a research report on Tuesday, October 6th. Zacks Research raised shares of Valero Energy from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 4th. Mizuho boosted their target price on shares of Valero Energy from $300.00 to $434.00 and gave the company a "neutral" rating in a research note on Thursday, October 8th. Jefferies Financial Group decreased their target price on shares of Valero Energy from $401.00 to $394.00 and set a "hold" rating for the company in a research note on Thursday, October 8th. Finally, Citigroup increased their price target on Valero Energy from $259.00 to $302.00 and gave the company a "neutral" rating in a report on Tuesday, July 14th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $365.19.

Valero Energy Price Performance

The company has a market capitalization of $131.48 billion, a P/E ratio of 18.95, a price-to-earnings-growth ratio of 0.28 and a beta of 0.59. 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's 50-day moving average is $371.24 and its 200-day moving average is $298.31.

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, topping 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 business had revenue of $44.48 billion for the quarter, compared to the consensus estimate of $39.47 billion. During the same period last year, the firm earned $2.28 earnings per share. The company's quarterly revenue was up 48.8% on a year-over-year basis. Analysts predict that Valero Energy Corporation will post 51.31 EPS for the current fiscal year.

Valero Energy Announces Dividend

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

Institutional Trading of Valero Energy

Hedge funds have recently bought and sold shares of the stock. Grove Bank & Trust increased its position in Valero Energy by 1.0% in the third quarter. Grove Bank & Trust now owns 2,608 shares of the oil and gas company's stock worth $1,011,000 after buying an additional 25 shares in the last quarter. QRG Capital Management Inc. lifted its position in shares of Valero Energy by 5.5% during the 2nd quarter. QRG Capital Management Inc. now owns 58,558 shares of the oil and gas company's stock valued at $15,251,000 after buying an additional 3,037 shares in the last quarter. Envestnet Portfolio Solutions Inc. lifted its position in shares of Valero Energy by 24.1% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,454 shares of the oil and gas company's stock valued at $1,681,000 after buying an additional 1,255 shares in the last quarter. Security National Bank of SO Dak bought a new position in shares of Valero Energy during the 2nd quarter valued at approximately $108,000. Finally, Bouchey Financial Group Ltd. grew its stake in shares of Valero Energy by 4.6% during the 2nd quarter. Bouchey Financial Group Ltd. now owns 1,016 shares of the oil and gas company's stock valued at $265,000 after acquiring an additional 45 shares during the period. Institutional investors own 78.69% of the company's stock.

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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