Valero Energy (NYSE:VLO) Shares Down 4.2% Following Analyst Downgrade

Valero Energy Corporation (NYSE:VLO)’s share price fell 4.2% on Friday after Piper Sandler lowered their price target on the stock from $223.00 to $217.00. Piper Sandler currently has an overweight rating on the stock. Valero Energy traded as low as $182.61 and last traded at $183.3680. 2,252,264 shares traded hands during trading, a decline of 58% from the average session volume of 5,315,714 shares. The stock had previously closed at $191.32.

A number of other research firms also recently commented on VLO. Bank of America restated a “neutral” rating and issued a $195.00 price objective (down from $198.00) on shares of Valero Energy in a report on Thursday, December 11th. Erste Group Bank started coverage on shares of Valero Energy in a report on Monday, November 10th. They issued a “buy” rating on the stock. UBS Group reaffirmed a “buy” rating on shares of Valero Energy in a research report on Tuesday. Wells Fargo & Company increased their price objective on shares of Valero Energy from $216.00 to $220.00 and gave the stock an “overweight” rating in a research report on Monday, November 10th. Finally, Mizuho reissued a “neutral” rating and issued a $192.00 target price (up previously from $190.00) on shares of Valero Energy in a research note on Friday, December 12th. Three research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $183.00.

Insider Buying and Selling

In other Valero Energy news, CFO Jason W. Fraser sold 9,933 shares of the firm’s stock in a transaction on Friday, November 21st. The shares were sold at an average price of $174.02, for a total transaction of $1,728,540.66. Following the completion of the transaction, the chief financial officer directly owned 134,196 shares of the company’s stock, valued at $23,352,787.92. This trade represents a 6.89% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.04% of the stock is owned by company insiders.

Valero Energy News Roundup

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

• Positive Sentiment: Wells Fargo and Barclays reaffirmed buy ratings on VLO, reinforcing institutional support that can underpin the stock. Wells Fargo Keeps Their Buy Rating on Valero Energy (VLO)
• Positive Sentiment: JPMorgan raised its price target to $200 and keeps an overweight view, signaling analysts see upside versus recent levels. JPMorgan raises VLO target
• Positive Sentiment: Media and TV commentary (Jim Cramer) highlight refiners like Valero as potential beneficiaries if U.S. policy opens access to Venezuelan crude — a positive sentiment tailwind for refining margins and investor interest. Jim Cramer Says Refiners Like Valero as Potential Winners From Venezuelan Oil
• Positive Sentiment: Zacks notes Valero’s strong earnings surprise history and factors (operational flexibility, margin capture) that increase the odds of an earnings beat — a catalyst that could lift the stock if results beat again. Will Valero Energy (VLO) Beat Estimates Again?
• Neutral Sentiment: Unusually high options volume indicates heavy positioning/speculation around VLO — can amplify moves in either direction but doesn’t signal a fundamental change alone. Valero Energy Sees Unusually High Options Volume (NYSE:VLO)
• Neutral Sentiment: Coverage of a White House meeting with oil majors (Barron’s) and comments that majors may move slowly into Venezuela (Reuters) create a mixed timeline: policy momentum exists, but execution and investment timelines remain uncertain. Trump to Meet With Chevron and Other Oil Companies on Venezuela Bessent says largest oil companies are likely to move slower in Venezuela
• Negative Sentiment: Critical analysis (Seeking Alpha) calls the “Venezuela hype” into question, arguing the upside may be overstated — this increased skepticism can pressure the stock if investors reassess realistic benefits. Valero Energy: Sell The Venezuela Hype
• Negative Sentiment: Reports that U.S. oil companies want firm guarantees before investing in Venezuela (FT/Reuters) highlight political, legal and investment risk — a material constraint on how quickly Valero could benefit. US oil companies say they need guarantees to invest in Venezuela
• Negative Sentiment: Piper Sandler trimmed its price target (from $223 to $217) — a modest downgrade to upside expectations that can add downward pressure despite an overweight rating. Piper Sandler lowers PT

Institutional Trading of Valero Energy

Several institutional investors and hedge funds have recently bought and sold shares of VLO. Hoey Investments Inc. acquired a new stake in shares of Valero Energy during the 2nd quarter valued at approximately $26,000. GFG Capital LLC bought a new stake in Valero Energy during the second quarter valued at $27,000. Highline Wealth Partners LLC raised its holdings in shares of Valero Energy by 70.2% during the third quarter. Highline Wealth Partners LLC now owns 160 shares of the oil and gas company’s stock worth $27,000 after purchasing an additional 66 shares during the period. JPL Wealth Management LLC acquired a new stake in shares of Valero Energy during the third quarter worth $27,000. Finally, Hantz Financial Services Inc. lifted its position in shares of Valero Energy by 1,277.8% in the 2nd quarter. Hantz Financial Services Inc. now owns 248 shares of the oil and gas company’s stock worth $33,000 after buying an additional 230 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.

Valero Energy Price Performance

The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.09 and a current ratio of 1.60. The firm has a market capitalization of $56.52 billion, a price-to-earnings ratio of 38.68, a price-to-earnings-growth ratio of 1.06 and a beta of 0.77. The company’s fifty day moving average price is $172.96 and its 200 day moving average price is $159.50.

Valero Energy (NYSE:VLO) last announced its quarterly earnings results on Thursday, October 23rd. The oil and gas company reported $3.66 earnings per share for the quarter, topping analysts’ consensus estimates of $3.15 by $0.51. Valero Energy had a return on equity of 8.69% and a net margin of 1.21%.The company had revenue of $32.17 billion during the quarter, compared to analysts’ expectations of $28.80 billion. During the same quarter in the previous year, the firm earned $1.14 earnings per share. The business’s quarterly revenue was down 2.2% compared to the same quarter last year. Equities research analysts expect that Valero Energy Corporation will post 7.92 earnings per share for the current year.

Valero Energy Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Stockholders of record on Thursday, November 20th were given a $1.13 dividend. The ex-dividend date of this dividend was Thursday, November 20th. This represents a $4.52 dividend on an annualized basis and a dividend yield of 2.4%. Valero Energy’s dividend payout ratio (DPR) is currently 94.36%.

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.