Valero Energy (NYSE:VLO) Stock Price Down 1% - What's Next?

Key Points

• Valero shares fell 1% to roughly $384.56 in midday trading, despite trading volume remaining close to its average.
• Valero reported a strong quarter, with EPS of $23.90 beating the $21.17 consensus and revenue of $46.10 billion exceeding estimates; earnings increased 43.3% year over year.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $379.94, while the company maintained its $1.20 quarterly dividend ($4.80 annualized).

Valero Energy Corporation (NYSE:VLO - Get Free Report) shares traded down 1% on Thursday. The company traded as low as $377.45 and last traded at $384.5620. 3,339,998 shares changed hands during mid-day trading, an increase of 1% from the average daily volume of 3,296,839 shares. The stock had previously closed at $388.48.

Trending Headlines about Valero Energy

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Valero’s strong quarter reportedly expanded its capacity for share repurchases, potentially supporting per-share value and signaling confidence in cash generation. The company recently reported record earnings, with EPS of $23.90 exceeding the $21.17 consensus and revenue of $46.10 billion surpassing estimates. Valero Energy stock: Buyback capacity expands after strong quarter
• Positive Sentiment: Zacks added VLO to its Rank #1 (Strong Buy) growth-stock list, citing its earnings momentum, growth outlook and recent operating performance. Best Growth Stocks to Buy for October 29th
• Positive Sentiment: Valero maintained its quarterly dividend at $1.20 per share, payable December 21 to shareholders of record November 24. The annualized payout is $4.80 per share, providing continued income support. Valero Energy Corporation Declares Regular Cash Dividend on Common Stock

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Wells Fargo & Company lifted their price objective on shares of Valero Energy from $485.00 to $489.00 and gave the company an "overweight" rating in a research report on Friday, October 23rd. Zacks Research upgraded Valero Energy from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 4th. Weiss Ratings raised shares of Valero Energy from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, October 8th. Erste Group Bank downgraded Valero Energy from a "buy" rating to a "hold" rating in a research report on Thursday, August 27th. Finally, TD Cowen increased their price objective on Valero Energy from $375.00 to $400.00 and gave the stock a "hold" rating in a research note on Thursday, October 22nd. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $379.94.

Valero Energy Stock Down 1.0%

The company has a current ratio of 1.64, a quick ratio of 1.23 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $110.73 billion, a PE ratio of 8.65, a price-to-earnings-growth ratio of 0.24 and a beta of 0.59. The business's 50-day simple moving average is $395.69 and its 200-day simple moving average is $282.96.

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 47.50%. 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. As a group, equities research analysts anticipate that Valero Energy Corporation will post 56.78 EPS for the current fiscal year.

Valero Energy Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 21st. Shareholders of record on Tuesday, November 24th will be paid a dividend of $1.20 per share. 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 1.2%. Valero Energy's payout ratio is 10.80%.

Hedge Funds Weigh In On Valero Energy

A number of hedge funds have recently modified their holdings of VLO. Bank of America Corp DE increased its stake in Valero Energy by 11.4% during the first quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company's stock worth $1,243,630,000 after purchasing an additional 516,975 shares during the period. Bank of New York Mellon Corp boosted its stake in shares of Valero Energy by 9.4% in the first quarter. Bank of New York Mellon Corp now owns 2,969,320 shares of the oil and gas company's stock valued at $733,660,000 after purchasing an additional 254,604 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in shares of Valero Energy by 18.4% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,842,339 shares of the oil and gas company's stock valued at $702,285,000 after purchasing an additional 442,177 shares in the last quarter. Amundi grew its holdings in shares of Valero Energy by 45.3% in the first quarter. Amundi now owns 2,584,976 shares of the oil and gas company's stock valued at $638,695,000 after purchasing an additional 806,018 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Valero Energy by 33.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,058,341 shares of the oil and gas company's stock worth $536,074,000 after buying an additional 520,642 shares during the period. 78.69% of the stock is currently owned by hedge funds and other institutional investors.

About Valero Energy

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company's primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.

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