Valero Energy (NYSE:VLO) Reaches New 1-Year High - Should You Buy?

Key Points

• Valero Energy shares reached a new 52-week high of $347.61, trading about 1.6% higher and well above their 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy”; however, the average price target of $288 is below the current share price, and ratings range from Buy to Underperform.
• Valero significantly beat quarterly earnings and revenue estimates, reporting $12.54 in EPS and $44.48 billion in revenue, while announcing a quarterly dividend of $1.20, equivalent to a 1.4% annual yield.

Valero Energy Corporation (NYSE:VLO - Get Free Report)'s share price hit a new 52-week high on Monday . The stock traded as high as $347.61 and last traded at $347.0670, with a volume of 110573 shares. The stock had previously closed at $341.67.

Analysts Set New Price Targets

Several brokerages recently issued reports on VLO. TD Cowen raised their target price on Valero Energy from $338.00 to $350.00 and gave the stock a "hold" rating in a research report on Monday, August 3rd. Wolfe Research reissued an "underperform" rating and issued a $203.00 price target on shares of Valero Energy in a research note on Tuesday, April 21st. UBS Group raised their price objective on Valero Energy from $280.00 to $355.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Barclays lifted their price objective on Valero Energy from $279.00 to $323.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Finally, Scotiabank upped their target price on Valero Energy from $178.00 to $226.00 and gave the company a "sector outperform" rating in a report on Wednesday, April 22nd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $288.00.

Valero Energy Stock Up 1.6%

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 firm has a market cap of $99.99 billion, a P/E ratio of 14.40, a PEG ratio of 0.23 and a beta of 0.55. The stock's 50-day simple moving average is $283.92 and its 200 day simple moving average is $248.42.

Valero Energy (NYSE:VLO - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, topping the consensus estimate of $10.11 by $2.43. 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 26.74% and a net margin of 5.17%.The business's quarterly revenue was up 48.8% on a year-over-year basis. During the same period last year, the company posted $2.28 EPS. As a group, research analysts forecast that Valero Energy Corporation will post 40.62 EPS for the current fiscal year.

Valero Energy Announces Dividend

The firm 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 $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, July 31st. Valero Energy's payout ratio is presently 19.92%.

Insider Transactions at Valero Energy

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

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of VLO. V Square Quantitative Management LLC raised its stake in shares of Valero Energy by 0.6% in the first quarter. V Square Quantitative Management LLC now owns 6,670 shares of the oil and gas company's stock worth $1,648,000 after acquiring an additional 42 shares during the last quarter. M.E. Allison & CO. Inc. increased its holdings in shares of Valero Energy by 5.8% in the second quarter. M.E. Allison & CO. Inc. now owns 916 shares of the oil and gas company's stock valued at $239,000 after purchasing an additional 50 shares in the last quarter. Ridgecrest Wealth Partners LLC raised its position in Valero Energy by 5.0% in the 2nd quarter. Ridgecrest Wealth Partners LLC now owns 1,054 shares of the oil and gas company's stock worth $275,000 after purchasing an additional 50 shares during the last quarter. CYBER HORNET ETFs LLC lifted its holdings in Valero Energy by 5.5% during the 4th quarter. CYBER HORNET ETFs LLC now owns 975 shares of the oil and gas company's stock worth $159,000 after buying an additional 51 shares in the last quarter. Finally, Bruce G. Allen Investments LLC boosted its position in Valero Energy by 32.9% in the 4th quarter. Bruce G. Allen Investments LLC now owns 206 shares of the oil and gas company's stock valued at $34,000 after buying an additional 51 shares during the last quarter. Institutional investors and hedge funds 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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