Valero Energy (NYSE:VLO) Reaches New 52-Week High - Should You Buy?

Key Points

• Valero Energy reached a new 52-week high, trading as high as $353, while analysts maintain a “Moderate Buy” consensus rating. However, the $288 average price target is below the current share price.
• Valero reported strong quarterly results, with EPS of $12.54 beating estimates by $2.43 and revenue of $44.48 billion exceeding expectations; revenue increased 48.8% year over year.
• The company declared a quarterly dividend of $1.20 per share, equivalent to $4.80 annually and a 1.4% yield. Institutional investors own approximately 78.69% of Valero’s outstanding shares.

Valero Energy Corporation (NYSE:VLO - Get Free Report)'s stock price hit a new 52-week high on Monday . The company traded as high as $353.00 and last traded at $347.9010, with a volume of 238231 shares traded. The stock had previously closed at $348.86.

Wall Street Analyst Weigh In

VLO has been the subject of a number of recent research reports. Citigroup lifted their price objective on shares of Valero Energy from $259.00 to $302.00 and gave the company a "neutral" rating in a research note on Tuesday, July 14th. Piper Sandler reissued an "overweight" rating and set a $329.00 price objective on shares of Valero Energy in a report on Thursday, July 23rd. Mizuho upped their price target on Valero Energy from $289.00 to $300.00 and gave the company a "neutral" rating in a research report on Tuesday, August 4th. Raymond James Financial raised 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. Finally, Jefferies Financial Group set a $350.00 target price on shares of Valero Energy in a research note on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $288.00.

Valero Energy Trading Down 1.0%

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's fifty day moving average is $292.93 and its two-hundred day moving average is $254.21. The firm has a market cap of $99.42 billion, a P/E ratio of 14.30, a PEG ratio of 0.23 and a beta of 0.55.

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, beating the consensus estimate of $10.11 by $2.43. The business had revenue of $44.48 billion for the quarter, compared to analysts' expectations of $39.47 billion. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The business's revenue was up 48.8% on a year-over-year basis. During the same period in the previous year, the firm posted $2.28 EPS. Analysts predict that Valero Energy Corporation will post 40.62 earnings per share for the current fiscal year.

Valero Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, July 31st will be given a dividend of $1.20 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $4.80 annualized dividend and a yield of 1.4%. Valero Energy's dividend payout ratio (DPR) is currently 19.92%.

Insider Activity at Valero Energy

In other news, SVP Eric A. Fisher sold 7,500 shares of the company's stock in a transaction dated Monday, June 29th. The shares were 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 of the company's stock, valued at $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 available through the SEC website. Company insiders own 0.36% of the company's stock.

Institutional Investors Weigh In On Valero Energy

A number of hedge funds and other institutional investors have recently bought and sold shares of VLO. Whipplewood Advisors LLC grew its stake in shares of Valero Energy by 3,400.0% in the first quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock worth $26,000 after acquiring an additional 102 shares during the last quarter. Financial Life Planners purchased a new position in shares of Valero Energy in the first quarter worth $28,000. Valued Wealth Advisors LLC increased its holdings in Valero Energy by 134.0% in the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock worth $29,000 after buying an additional 67 shares in the last quarter. Global Assets Advisory LLC purchased a new stake in shares of Valero Energy during the 1st quarter valued at about $33,000. Finally, JPL Wealth Management LLC bought a new stake in Valero Energy during the 3rd quarter worth approximately $27,000. Hedge funds and other institutional investors own 78.69% of the company's stock.

About Valero Energy

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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