Valero Energy (NYSE:VLO) Hits New 52-Week High - Time to Buy?

Key Points

• Valero shares reached a new 52-week high of $322.28 and last traded at $322.43, well above their 50-day and 200-day moving averages.
• The latest quarter exceeded expectations, with EPS of $12.54 versus the $10.11 consensus estimate and revenue of $44.48 billion, up 48.8% year over year.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating, though the $288 average price target is below the current share price. Valero also declared a quarterly dividend of $1.20 per share, representing a 1.5% yield.

Valero Energy Corporation (NYSE:VLO - Get Free Report) shares hit a new 52-week high on Tuesday . The company traded as high as $322.28 and last traded at $322.43, with a volume of 540262 shares changing hands. The stock had previously closed at $314.95.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on VLO. Zacks Research raised shares of Valero Energy from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 4th. Weiss Ratings upgraded shares of Valero Energy from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday. Barclays lifted their target price on shares of Valero Energy from $279.00 to $323.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Wolfe Research restated an "underperform" rating and set a $203.00 price target on shares of Valero Energy in a report on Tuesday, April 21st. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $329.00 price target on shares of Valero Energy in a research note on Thursday, July 23rd. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $288.00.

Valero Energy Price Performance

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 stock has a market capitalization of $93.07 billion, a price-to-earnings ratio of 13.42, a PEG ratio of 0.20 and a beta of 0.55. The stock's 50 day simple moving average is $277.85 and its 200-day simple moving average is $244.24.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The oil and gas company reported $12.54 EPS 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 company had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. During the same quarter in the prior year, the business posted $2.28 EPS. Valero Energy's quarterly revenue was up 48.8% on a year-over-year basis. On average, analysts expect that Valero Energy Corporation will post 39.55 EPS for the current fiscal year.

Valero Energy Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Shareholders 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 1.5%. The ex-dividend date is Friday, July 31st. Valero Energy's dividend payout ratio (DPR) is 19.92%.

Insider Buying and Selling at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the business's stock in a transaction dated 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 completion of the sale, the senior vice president owned 19,742 shares of the company's stock, valued at $5,294,212.14. The trade was a 27.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.36% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Valero Energy

Large investors have recently added to or reduced their stakes in the stock. Friedenthal Financial acquired a new stake in shares of Valero Energy in the fourth quarter worth $954,000. Robeco Institutional Asset Management B.V. raised its stake in Valero Energy by 24.7% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 565,171 shares of the oil and gas company's stock valued at $92,004,000 after purchasing an additional 112,118 shares during the last quarter. Whittier Trust Co. boosted its holdings in Valero Energy by 2.8% in the 4th quarter. Whittier Trust Co. now owns 212,104 shares of the oil and gas company's stock valued at $37,812,000 after purchasing an additional 5,694 shares during the period. Sierra Summit Advisors LLC boosted its holdings in Valero Energy by 2,325.2% in the 4th quarter. Sierra Summit Advisors LLC now owns 36,378 shares of the oil and gas company's stock valued at $5,922,000 after purchasing an additional 34,878 shares during the period. Finally, Meiji Yasuda Asset Management Co Ltd. grew its position in Valero Energy by 846.9% in the 4th quarter. Meiji Yasuda Asset Management Co Ltd. now owns 14,752 shares of the oil and gas company's stock worth $2,401,000 after purchasing an additional 13,194 shares during the last quarter. 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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