Valero Energy (NYSE:VLO) Reaches New 52-Week High on Analyst Upgrade

Key Points

• Valero Energy's stock reached a new 52-week high of $166.41 after UBS Group upgraded their price target from $165.00 to $183.00 and maintained a buy rating.
• Various analysts have differing views on Valero Energy, with Citigroup downgrading the stock to "neutral" while others, including Bank of America, upgraded it to "buy" and raised their price targets significantly.
• Valero Energy announced a recent dividend of $1.13 per share, contributing to an annualized dividend yield of 2.7%, although it has a high dividend payout ratio of 188.33%.

Valero Energy Corporation (NYSE:VLO - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Monday after UBS Group raised their price target on the stock from $165.00 to $183.00. UBS Group currently has a buy rating on the stock. Valero Energy traded as high as $166.01 and last traded at $166.41, with a volume of 465668 shares traded. The stock had previously closed at $162.62.

Other analysts have also issued reports about the stock. Evercore ISI increased their target price on shares of Valero Energy from $135.00 to $185.00 and gave the stock an "in-line" rating in a report on Friday. Wells Fargo & Company increased their target price on shares of Valero Energy from $151.00 to $168.00 and gave the stock an "overweight" rating in a report on Wednesday, July 9th. Bank of America upgraded shares of Valero Energy from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $152.00 to $179.00 in a report on Wednesday, September 3rd. Wolfe Research lowered shares of Valero Energy from an "outperform" rating to a "peer perform" rating in a report on Monday, July 14th. Finally, Piper Sandler raised their price objective on shares of Valero Energy from $171.00 to $200.00 and gave the stock an "overweight" rating in a report on Thursday, September 11th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $165.00.

Institutional Investors Weigh In On Valero Energy

Institutional investors and hedge funds have recently made changes to their positions in the company. State of Wyoming grew its position in Valero Energy by 11.3% in the 4th quarter. State of Wyoming now owns 1,449 shares of the oil and gas company's stock worth $178,000 after purchasing an additional 147 shares during the period. Woodline Partners LP bought a new stake in Valero Energy in the 4th quarter worth approximately $2,331,000. Vise Technologies Inc. grew its position in Valero Energy by 57.0% in the 4th quarter. Vise Technologies Inc. now owns 4,775 shares of the oil and gas company's stock worth $585,000 after purchasing an additional 1,733 shares during the period. Forum Financial Management LP grew its position in Valero Energy by 2.4% in the 4th quarter. Forum Financial Management LP now owns 6,361 shares of the oil and gas company's stock worth $780,000 after purchasing an additional 152 shares during the period. Finally, Mackenzie Financial Corp grew its position in Valero Energy by 1.6% in the 4th quarter. Mackenzie Financial Corp now owns 130,551 shares of the oil and gas company's stock worth $16,004,000 after purchasing an additional 2,030 shares during the period. Institutional investors own 78.69% of the company's stock.

Valero Energy Stock Performance

The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.11 and a current ratio of 1.62. The firm has a market cap of $51.73 billion, a P/E ratio of 69.38, a P/E/G ratio of 1.76 and a beta of 1.10. The business's 50-day simple moving average is $146.80 and its 200 day simple moving average is $134.42.

Valero Energy (NYSE:VLO - Get Free Report) last posted its earnings results on Thursday, July 24th. The oil and gas company reported $2.28 EPS for the quarter, topping analysts' consensus estimates of $1.66 by $0.62. The business had revenue of $29.89 billion during the quarter, compared to the consensus estimate of $27 billion. Valero Energy had a net margin of 0.62% and a return on equity of 5.76%. The firm's revenue was down 13.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.71 EPS. As a group, equities analysts predict that Valero Energy Corporation will post 7.92 earnings per share for the current year.

Valero Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 2nd. Stockholders of record on Thursday, July 31st were paid a dividend of $1.13 per share. This represents a $4.52 annualized dividend and a dividend yield of 2.7%. The ex-dividend date was Thursday, July 31st. Valero Energy's dividend payout ratio (DPR) is currently 188.33%.

Valero Energy Company Profile

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol.