Valero Energy Sees Unusually Large Options Volume (NYSE:VLO)

Key Points

• Unusual options activity: Traders purchased 23,642 put options on Valero Energy, approximately 179% above average volume, potentially signaling increased hedging or bearish speculation.
• Strong quarterly performance: Valero reported adjusted earnings of $12.54 per share, beating estimates of $10.11, while revenue rose 48.8% year over year to $44.48 billion.
• Positive analyst sentiment: Several firms raised their price targets, with the stock carrying a “Moderate Buy” consensus rating and an average target of $288. Valero also declared a quarterly dividend of $1.20 per share, yielding about 1.4%.

Valero Energy Corporation (NYSE:VLO - Get Free Report) was the recipient of unusually large options trading activity on Monday. Stock traders acquired 23,642 put options on the stock. This is an increase of approximately 179% compared to the average volume of 8,462 put options.

Insider Buying and Selling at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the firm'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 sale, the senior vice president owned 19,742 shares of the company's stock, valued at $5,294,212.14. This trade represents a 27.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.36% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of VLO. Whipplewood Advisors LLC lifted its stake in Valero Energy by 3,400.0% during the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock valued at $26,000 after acquiring an additional 102 shares during the period. JPL Wealth Management LLC bought a new stake in shares of Valero Energy in the third quarter worth approximately $27,000. Financial Life Planners bought a new stake in shares of Valero Energy in the first quarter worth approximately $28,000. Valued Wealth Advisors LLC raised its holdings in shares of Valero Energy by 134.0% during the first quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock valued at $29,000 after purchasing an additional 67 shares during the last quarter. Finally, Torren Management LLC bought a new position in Valero Energy during the fourth quarter valued at approximately $30,000. Hedge funds and other institutional investors own 78.69% of the company's stock.

Valero Energy News Summary

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

• Positive Sentiment: Strong Buy recognition: VLO was added to Zacks’ Rank #1 (Strong Buy) list and was separately identified as both a leading value and growth stock. These designations may attract additional investor interest. New Strong Buy Stocks for August 17th Best Value Stocks to Buy for August 17th Best Growth Stocks to Buy for August 17th
• Positive Sentiment: Rising earnings estimates: Zacks reported that analysts are moving their earnings estimates higher for Valero, suggesting improving expectations for the refining company and supporting the possibility of further gains. Earnings Estimates Moving Higher for Valero Energy
• Positive Sentiment: Strong operating backdrop: Valero’s latest reported quarter substantially exceeded consensus expectations, with earnings per share of $12.54 versus an estimate of $10.11 and revenue growth of 48.8% year over year. This performance likely reinforces the bullish estimate revisions.
• Neutral Sentiment: Unusual options activity: Traders bought 23,642 put options, roughly 179% above typical volume. The activity may indicate increased hedging or bearish speculation, but it does not necessarily predict a decline in VLO shares.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on VLO shares. Weiss Ratings raised shares of Valero Energy from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, August 6th. Wells Fargo & Company raised their target price on shares of Valero Energy from $292.00 to $356.00 and gave the stock an "overweight" rating in a report on Friday, July 31st. UBS Group upped their price target on Valero Energy from $280.00 to $355.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Barclays raised their target price on shares of Valero Energy from $279.00 to $323.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Finally, TD Cowen lifted their price target on Valero Energy from $338.00 to $350.00 and gave the company a "hold" rating in a research report on Monday, August 3rd. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $288.00.

Valero Energy Stock Up 1.6%

VLO stock traded up $5.31 during trading on Monday, hitting $346.98. 1,255,025 shares of the stock traded hands, compared to its average volume of 3,375,812. The stock has a market cap of $99.91 billion, a price-to-earnings ratio of 14.40, a price-to-earnings-growth ratio of 0.23 and a beta of 0.55. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. Valero Energy has a 1 year low of $135.02 and a 1 year high of $350.63. The firm's 50 day moving average is $283.92 and its two-hundred day moving average is $248.42.

Valero Energy (NYSE:VLO - Get Free Report) last issued its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.11 by $2.43. The firm had revenue of $44.48 billion for the quarter, compared to the consensus estimate of $39.47 billion. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The business's revenue was up 48.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.28 earnings per share. On average, sell-side analysts anticipate that Valero Energy will post 40.62 EPS for the current year.

Valero Energy Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be given a $1.20 dividend. 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 is 19.92%.

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.

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.

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