Valero Energy (NYSE:VLO) Hits New 12-Month High After Better-Than-Expected Earnings

Valero Energy Corporation (NYSE:VLO)’s share price hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The company traded as high as $194.50 and last traded at $188.3070, with a volume of 1868986 shares. The stock had previously closed at $184.02.

The oil and gas company reported $3.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.27 by $0.55. The firm had revenue of $30.37 billion for the quarter, compared to analyst estimates of $28.20 billion. Valero Energy had a return on equity of 12.34% and a net margin of 1.91%.Valero Energy’s revenue was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.64 EPS.

Valero Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 9th. Investors of record on Thursday, February 5th will be given a dividend of $1.20 per share. The ex-dividend date is Thursday, February 5th. This represents a $4.80 dividend on an annualized basis and a yield of 2.6%. This is a boost from Valero Energy’s previous quarterly dividend of $1.13. Valero Energy’s dividend payout ratio (DPR) is 94.36%.

More Valero Energy News

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

• Positive Sentiment: Q4 earnings beat — Valero posted adjusted EPS of $3.82 vs. consensus ~$3.27 and reported higher refining margins that lifted profitability. Read More.
• Positive Sentiment: Record throughput and operational strength highlighted on the earnings call — management cited record throughput that supports margin recovery and cash generation. Read More.
• Positive Sentiment: Analyst upgrade — Piper Sandler raised its price target to $220 and set an “overweight” rating, signaling ~21% upside versus recent levels and reinforcing bullish analyst sentiment. Read More.
• Neutral Sentiment: Other analyst moves mixed — Morgan Stanley increased its target to $180 (below some peers’ targets and close to current levels), showing varied analyst views on near-term upside. Read More.
• Neutral Sentiment: Supply actions — Valero said it will buy Venezuelan crude from three authorized sellers; operationally notable but carries geopolitical/supply considerations rather than immediate earnings surprises. Read More.
• Negative Sentiment: Offsetting margin and revenue notes — analysts and reports flagged weaker renewable-diesel margins and a small (-1.2%) y/y revenue decline; Valero’s net margin remained modest, which could limit multiple expansion despite the EPS beat. Read More.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Zacks Research downgraded shares of Valero Energy from a “strong-buy” rating to a “hold” rating in a report on Tuesday, January 20th. Weiss Ratings restated a “hold (c)” rating on shares of Valero Energy in a research report on Wednesday, January 21st. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $195.00 target price (up from $181.00) on shares of Valero Energy in a research note on Friday, October 24th. UBS Group restated a “buy” rating on shares of Valero Energy in a report on Tuesday, January 6th. Finally, Morgan Stanley lifted their price objective on Valero Energy from $175.00 to $180.00 and gave the company an “equal weight” rating in a research report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $183.53.

Insiders Place Their Bets

In other Valero Energy news, CFO Jason W. Fraser sold 9,933 shares of the business’s stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $174.02, for a total transaction of $1,728,540.66. Following the completion of the sale, the chief financial officer owned 134,196 shares of the company’s stock, valued at approximately $23,352,787.92. The trade was a 6.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.04% of the company’s stock.

Institutional Trading of Valero Energy

Institutional investors have recently modified their holdings of the company. Norges Bank acquired a new position in Valero Energy during the second quarter valued at approximately $827,390,000. Arrowstreet Capital Limited Partnership purchased a new stake in Valero Energy during the 3rd quarter worth $275,239,000. Geode Capital Management LLC increased its holdings in Valero Energy by 16.7% in the 2nd quarter. Geode Capital Management LLC now owns 8,141,511 shares of the oil and gas company’s stock valued at $1,089,897,000 after purchasing an additional 1,164,217 shares in the last quarter. American Century Companies Inc. raised its position in Valero Energy by 162.5% in the second quarter. American Century Companies Inc. now owns 523,692 shares of the oil and gas company’s stock valued at $70,395,000 after purchasing an additional 324,174 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its stake in shares of Valero Energy by 2.5% during the second quarter. Charles Schwab Investment Management Inc. now owns 11,724,707 shares of the oil and gas company’s stock worth $1,576,035,000 after purchasing an additional 286,942 shares in the last quarter. Hedge funds and other institutional investors own 78.69% of the company’s stock.

Valero Energy Price Performance

The company has a debt-to-equity ratio of 0.36, a current ratio of 1.60 and a quick ratio of 1.09. The company has a market cap of $55.42 billion, a PE ratio of 23.78, a P/E/G ratio of 1.04 and a beta of 0.77. The company has a 50-day moving average price of $175.25 and a two-hundred day moving average price of $163.61.

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.