Valero Energy Corporation (NYSE:VLO) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Valero Energy has a consensus analyst rating of "Moderate Buy" from 21 firms, with the average 12-month price target at about $253.06. Recent analyst moves were mixed, including higher targets from Raymond James and BMO, but downgrades or neutral calls from others.
• The company announced a quarterly dividend of $1.20 per share and expanded its share repurchase authorization, signaling confidence in cash flow and supporting shareholder returns. The dividend implies a 1.6% yield and an annualized payout of $4.80 per share.
• Valero recently reported strong quarterly results, beating earnings and revenue estimates with $4.22 EPS versus $3.16 expected and revenue of $32.38 billion. The stock also touched a 52-week high near $309.90, reflecting improved momentum.

Shares of Valero Energy Corporation (NYSE:VLO - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the twenty-one ratings firms that are presently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, nine have issued a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $253.0588.

Several equities analysts have recently weighed in on VLO shares. Mizuho increased their price objective on shares of Valero Energy from $222.00 to $289.00 and gave the company a "neutral" rating in a research report on Wednesday, May 27th. Wolfe Research reaffirmed an "underperform" rating and set a $203.00 target price on shares of Valero Energy in a report on Tuesday, April 21st. Raymond James Financial upped their price target on shares of Valero Energy from $300.00 to $340.00 and gave the company a "strong-buy" rating in a research note on Monday, July 13th. Zacks Research cut shares of Valero Energy from a "strong-buy" rating to a "hold" rating in a report on Monday, June 22nd. Finally, BMO Capital Markets raised their price objective on shares of Valero Energy from $230.00 to $270.00 and gave the stock an "outperform" rating in a research report on Monday, April 6th.

Valero Energy News Roundup

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

• Positive Sentiment: Valero expanded its share repurchase authorization, which can boost earnings per share over time and indicates the board sees value in the stock. Valero Energy Expands Share Repurchase Authorization Program
• Positive Sentiment: Valero declared a quarterly cash dividend of $1.20 per share, reinforcing its appeal to income-focused investors and highlighting strong cash generation. Valero Energy Corporation Declares Regular Cash Dividend on Common Stock
• Positive Sentiment: Energy stocks rose late Friday afternoon, with the broader sector gaining on the day, which likely provided a supportive backdrop for VLO shares. Sector Update: Energy Stocks Rise Late Afternoon
• Neutral Sentiment: Separately, there was unusual put-option activity in Valero, suggesting some traders are hedging or positioning for near-term volatility rather than making a clear directional bet.
• Neutral Sentiment: Recent articles also pointed to improving earnings estimates and momentum, which may be helping sentiment, though these were commentary pieces rather than new company announcements. Can Valero Energy (VLO) Run Higher on Rising Earnings Estimates?

Valero Energy Stock Performance

Shares of NYSE VLO opened at $309.50 on Friday. The company has a current ratio of 1.58, a quick ratio of 1.15 and a debt-to-equity ratio of 0.39. Valero Energy has a 12 month low of $130.78 and a 12 month high of $309.90. The stock has a 50 day moving average of $258.97 and a 200-day moving average of $229.32. The company has a market capitalization of $91.90 billion, a P/E ratio of 22.49, a P/E/G ratio of 0.37 and a beta of 0.55.

Valero Energy (NYSE:VLO - Get Free Report) last posted its earnings results on Thursday, April 30th. The oil and gas company reported $4.22 earnings per share for the quarter, topping analysts' consensus estimates of $3.16 by $1.06. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.The business had revenue of $32.38 billion for the quarter, compared to analyst estimates of $31.38 billion. During the same period in the previous year, the firm earned $0.89 EPS. The firm's revenue was up 7.0% compared to the same quarter last year. As a group, equities research analysts predict that Valero Energy will post 32.04 EPS for the current year.

Valero Energy Dividend Announcement

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 issued a dividend of $1.20 per share. This represents a $4.80 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Friday, July 31st. Valero Energy's dividend payout ratio (DPR) is presently 34.88%.

Insider Transactions at Valero Energy

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

Institutional Investors Weigh In On Valero Energy

A number of institutional investors have recently modified their holdings of the business. Whipplewood Advisors LLC raised its stake in Valero Energy by 3,400.0% in the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock worth $26,000 after purchasing an additional 102 shares in the last quarter. JPL Wealth Management LLC acquired a new position in shares of Valero Energy during the 3rd quarter worth approximately $27,000. Financial Life Planners acquired a new position in shares of Valero Energy during the 1st quarter worth approximately $28,000. Valued Wealth Advisors LLC increased its holdings in shares of Valero Energy by 134.0% during the first quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock worth $29,000 after purchasing an additional 67 shares during the period. Finally, Torren Management LLC bought a new position in shares of Valero Energy during the fourth quarter worth approximately $30,000. Institutional investors own 78.69% of the company's stock.

Valero Energy Company Profile

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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