Valero Energy (NYSE:VLO) Stock Price Down 9.4% - Time to Sell?

Key Points

• Valero shares fell 9.4% to about $386 during heavy trading, as investors reassessed the company’s strong refining outlook and took profits after a substantial run-up.
• Market concerns include potentially easing fuel-market tightness from lower crude prices, increased Russian diesel production and possible Middle East diplomatic progress. Freedom Broker downgraded the stock to Sell, while insider sales and mixed institutional positioning added caution.
• Despite the selloff, Valero reported quarterly EPS of $23.90, well above the $21.17 consensus, and revenue of $46.10 billion. Analysts maintain an overall “Moderate Buy” rating, though the average price target of $379.94 is below the stock’s recent trading level.

Valero Energy Corporation (NYSE:VLO - Get Free Report) dropped 9.4% during mid-day trading on Tuesday. The stock traded as low as $385.65 and last traded at $386.7750. Approximately 5,065,837 shares were traded during mid-day trading, an increase of 54% from the average session volume of 3,295,015 shares. The stock had previously closed at $426.76.

Key Valero Energy News

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

• Positive Sentiment: Zacks named Valero Energy (VLO) a top momentum and growth pick, citing strong earnings surprises, favorable estimate revisions and robust projected growth. Seagate and One Momentum Stock to Buy Now for Big Upside
• Positive Sentiment: VLO was also included in Zacks’ Rank #1 “Strong Buy” growth-stock list, reinforcing the view that improving earnings expectations could support the shares. Best Growth Stocks to Buy for October 27th
• Positive Sentiment: Recent commentary highlighted Valero’s earnings momentum, valuation and growth characteristics, while another analyst roundup indicated continued interest in the energy company. These factors may limit downside if refining conditions remain supportive. Is Valero Energy a Solid Growth Stock?
• Neutral Sentiment: Institutional positioning was mixed, with hundreds of funds adding shares while others reduced exposure. Recent insider activity showed sales but no purchases, a signal investors may monitor rather than a definitive change in fundamentals.
• Negative Sentiment: Traders are reassessing refining tailwinds as lower crude prices, possible Middle East diplomatic progress and increased Russian diesel production raise expectations that fuel-market tightness and refining margins could ease. After VLO’s substantial run, those concerns have increased profit-taking pressure. Valero Energy Shares Fall as Traders Reassess Refining Tailwinds
• Negative Sentiment: Freedom Broker downgraded Valero from Hold to Sell, adding to near-term caution. Michael Burry also indicated he was considering reducing or exiting VLO after its strong performance. Freedom Broker Downgrades Valero Energy

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on VLO. Weiss Ratings upgraded Valero Energy from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday, October 8th. UBS Group restated a "buy" rating and set a $467.00 price objective on shares of Valero Energy in a report on Tuesday, October 6th. Piper Sandler boosted their price objective on Valero Energy from $329.00 to $435.00 and gave the company an "overweight" rating in a report on Thursday, September 3rd. The Goldman Sachs Group increased their target price on Valero Energy from $365.00 to $457.00 and gave the stock a "buy" rating in a research note on Wednesday, September 23rd. Finally, Citigroup increased their target price on Valero Energy from $485.00 to $490.00 and gave the stock a "neutral" rating in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $379.94.

Valero Energy Stock Down 9.4%

The company's 50 day moving average price is $392.44 and its two-hundred day moving average price is $279.72. The company has a quick ratio of 1.23, a current ratio of 1.64 and a debt-to-equity ratio of 0.37. The stock has a market cap of $111.36 billion, a P/E ratio of 8.70, a P/E/G ratio of 0.24 and a beta of 0.59.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $21.17 by $2.73. The company had revenue of $46.10 billion for the quarter, compared to analysts' expectations of $42.71 billion. Valero Energy had a return on equity of 47.50% and a net margin of 8.44%. Valero Energy's revenue was up 43.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.66 earnings per share. As a group, research analysts expect that Valero Energy Corporation will post 54.22 earnings per share for the current year.

Hedge Funds Weigh In On Valero Energy

Several institutional investors have recently made changes to their positions in VLO. Bank of America Corp DE bought a new position in Valero Energy during the 2nd quarter worth about $1,195,943,000. Amundi boosted its stake in shares of Valero Energy by 45.3% during 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. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Valero Energy by 33.9% during the second 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 valued at $536,074,000 after buying an additional 520,642 shares during the period. Corient Private Wealth LP purchased a new position in Valero Energy during the second quarter valued at approximately $59,917,000. Finally, Arrowstreet Capital Limited Partnership raised its stake in 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 worth $702,285,000 after buying an additional 442,177 shares in 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 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.