Valero Energy (NYSE:VLO) Price Target Raised to $356.00 at Wells Fargo & Company

Key Points

• Wells Fargo raised Valero Energy’s price target to $356 from $292 and maintained an “overweight” rating, implying roughly 15% upside from the prior close.
• Valero’s latest quarter significantly exceeded expectations, with adjusted EPS of $12.54 versus the $10.13 consensus and revenue of $44.48 billion, up 48.8% year over year, driven by stronger refining margins and renewable-fuels performance.
• Analyst sentiment remains positive overall, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $273.06, though the stock’s proximity to its 52-week high highlights risks from cyclical refining profits.

Valero Energy (NYSE:VLO - Get Free Report) had its price target raised by Wells Fargo & Company from $292.00 to $356.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the oil and gas company's stock. Wells Fargo & Company's price objective indicates a potential upside of 15.06% from the company's previous close.

Several other equities analysts have also recently issued reports on the company. UBS Group restated a "buy" rating and set a $280.00 price objective on shares of Valero Energy in a research note on Thursday, June 11th. TD Cowen increased their target price on shares of Valero Energy from $292.00 to $338.00 and gave the stock a "hold" rating in a report on Tuesday, July 21st. BMO Capital Markets raised their price target 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. Barclays lifted their price target on shares of Valero Energy from $279.00 to $323.00 and gave the company an "overweight" rating in a report on Friday. Finally, Raymond James Financial boosted their price objective on shares of Valero Energy from $300.00 to $340.00 and gave the company a "strong-buy" rating in a research report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $273.06.

Valero Energy Stock Down 0.7%

NYSE VLO traded down $2.30 during trading hours on Friday, reaching $309.41. 317,590 shares of the company traded hands, compared to its average volume of 3,408,446. The stock has a market capitalization of $91.87 billion, a PE ratio of 22.47, a PEG ratio of 0.19 and a beta of 0.55. 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 $320.24. The company has a 50 day moving average of $269.31 and a two-hundred day moving average of $238.16.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, beating the consensus estimate of $10.13 by $2.41. The firm had revenue of $44.48 billion during the quarter, compared to analyst estimates of $39.47 billion. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.Valero Energy's quarterly revenue was up 48.8% on a year-over-year basis. During the same period in the previous year, the company earned $2.28 earnings per share. As a group, equities analysts expect that Valero Energy will post 36.64 earnings per share for the current year.

Insider Transactions at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the firm'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 sale, the senior vice president directly owned 19,742 shares in the company, valued at approximately $5,294,212.14. This trade represents a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.36% of the company's stock.

Hedge Funds Weigh In On Valero Energy

Institutional investors have recently modified their holdings of the company. Friedenthal Financial bought a new position in shares of Valero Energy in the fourth quarter worth $954,000. Robeco Institutional Asset Management B.V. raised its stake in shares of Valero Energy by 24.7% during the fourth 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 in the last quarter. Whittier Trust Co. lifted its holdings in Valero Energy by 2.8% in the fourth quarter. Whittier Trust Co. now owns 212,104 shares of the oil and gas company's stock worth $37,812,000 after purchasing an additional 5,694 shares during the period. V Square Quantitative Management LLC acquired a new stake in Valero Energy in the fourth quarter worth about $1,079,000. Finally, Sierra Summit Advisors LLC grew its position 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 buying an additional 34,878 shares in the last quarter. Institutional investors own 78.69% of the company's stock.

Key Valero Energy News

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

• Positive Sentiment: Record earnings beat expectations. Valero reported second-quarter net income of $3.7 billion, or $12.62 per share, compared with $714 million, or $2.28 per share, a year earlier. Adjusted EPS of $12.54 exceeded analyst estimates of approximately $10.13, while revenue rose 48.8% year over year to $44.48 billion versus the $39.47 billion consensus. Valero Energy beats quarterly profit estimates on higher refining margins
• Positive Sentiment: Refining and renewable-fuels performance drove the surge. Higher refining margins, strong fuel demand and exports, plus gains in renewable diesel and ethanol, lifted profits and cash flow. Lower-cost Venezuelan feedstocks were also cited as benefiting results. Valero jumps after posting highest-ever Q2 profit
• Positive Sentiment: Barclays raised its outlook. Barclays lifted its price target from $279 to $323 and upgraded or reaffirmed an “overweight” rating, implying additional upside from the referenced market price. Barclays raises Valero price target
• Positive Sentiment: Shareholder returns remain supportive. Valero declared a $1.20-per-share cash dividend payable August 31 to shareholders of record as of July 31, underscoring its commitment to returning cash while earnings are strong. Valero Energy dividend analysis
• Neutral Sentiment: Management said regulatory changes and registration hurdles have slowed biofuel imports, potentially complicating compliance with renewable-fuel blending mandates. Valero discusses slower biofuel imports
• Negative Sentiment: At a valuation near recent highs, some commentary warns that refining profits are cyclical and the stock may already reflect peak-cycle earnings, leaving less margin for disappointment if margins normalize.

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.

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.