Valero Energy (NYSE:VLO) Stock Sees Unusually High Put Option Buying

Valero Energy Corporation (NYSE:VLO) saw some unusual options trading activity on Friday. Traders acquired 16,660 put options on the stock. This represents an increase of approximately 41% compared to the typical volume of 11,821 put options.

Valero Energy Price Performance

VLO stock opened at $400.04 on Friday. The firm has a 50 day moving average price of $397.64 and a 200-day moving average price of $285.06. Valero Energy has a 52-week low of $159.90 and a 52-week high of $461.52. The firm has a market capitalization of $115.18 billion, a price-to-earnings ratio of 9.00, a PEG ratio of 0.20 and a beta of 0.59. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.23 and a current ratio of 1.72.

Valero Energy (NYSE:VLO) last posted its quarterly earnings results on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $21.17 by $2.73. Valero Energy had a return on equity of 45.90% and a net margin of 8.44%. The firm had revenue of $46.10 billion during the quarter, compared to analyst estimates of $42.71 billion. During the same quarter in the previous year, the firm earned $3.66 EPS. Valero Energy’s quarterly revenue was up 43.3% compared to the same quarter last year. Equities research analysts forecast that Valero Energy will post 57.42 EPS for the current fiscal year.

Valero Energy Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 21st. Investors of record on Tuesday, November 24th will be given a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Tuesday, November 24th. Valero Energy’s payout ratio is currently 10.80%.

Institutional Investors Weigh In On Valero Energy

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Bank of America Corp DE increased its position in Valero Energy by 11.4% during the first quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company’s stock valued at $1,243,630,000 after acquiring an additional 516,975 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in Valero Energy by 9.4% during the 1st quarter. Bank of New York Mellon Corp now owns 2,969,320 shares of the oil and gas company’s stock worth $733,660,000 after acquiring an additional 254,604 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of Valero Energy by 18.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,842,339 shares of the oil and gas company’s stock valued at $702,285,000 after purchasing an additional 442,177 shares in the last quarter. Amundi lifted its holdings in Valero Energy by 45.3% during the first quarter. Amundi now owns 2,584,976 shares of the oil and gas company’s stock worth $638,695,000 after buying an additional 806,018 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Valero Energy by 33.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,058,341 shares of the oil and gas company’s stock worth $536,074,000 after acquiring an additional 520,642 shares in the last quarter. 78.69% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

VLO has been the subject of several analyst reports. Morgan Stanley raised their price objective on shares of Valero Energy from $255.00 to $411.00 and gave the stock an “equal weight” rating in a report on Monday, September 14th. Bank of America increased their price target on shares of Valero Energy from $395.00 to $414.00 and gave the stock a “neutral” rating in a report on Friday, October 2nd. Weiss Ratings raised Valero Energy from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Thursday. Piper Sandler lifted their price target on shares of Valero Energy from $329.00 to $435.00 and gave the stock an “overweight” rating in a research note on Thursday, September 3rd. Finally, Mizuho increased their target price on Valero Energy from $300.00 to $434.00 and gave the company a “neutral” rating in a report on Thursday, October 8th. Three investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $379.94.

Key Headlines Impacting Valero Energy

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

• Positive Sentiment: Houston acquisition expands Valero’s refining footprint: Valero agreed to acquire LyondellBasell’s former Houston Refinery site and related assets for $320.5 million. The transaction is expected to close in the fourth quarter of 2026 and includes the assumption of site operations, environmental liabilities, pension costs and related employee obligations. The deal could provide strategic infrastructure and operational growth in a major refining market. Valero to Acquire Former Houston Refinery from LyondellBasell
• Positive Sentiment: Large buyback authorization supports the stock: Valero reportedly authorized up to $10 billion in share repurchases after a strong quarter, increasing its ability to return excess cash to shareholders and potentially support per-share earnings. Valero authorizes USD 10.0 billion buyback
• Positive Sentiment: Exceptional quarterly profitability remains a catalyst: Valero generated $6.8 billion of third-quarter net income, while management allocated $1.7 billion of 2026 capital guidance to sustaining operations. Strong cash generation and refining margins reinforce the company’s capacity for shareholder returns. Valero: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Analyst valuation views improved but remain mixed: A consolidated fair-value estimate reportedly increased to $426.42 from $401.53, while some analysts remain cautious after the stock’s significant multiyear gains. Another analysis argues that Valero may still be undervalued on current earnings. Valero Energy Stock Sees Fair Value Lift
• Negative Sentiment: Put-option activity signals hedging or bearish positioning: Traders bought approximately 16,660 VLO put options, about 41% above average volume. This may reflect increased concern about downside risk following the stock’s strong run.
• Negative Sentiment: Sector-wide profit-taking risk persists: Commentary argued that investors should consider selling refiners after an exceptionally strong year, suggesting concerns that refining margins and share prices may have peaked. It’s Time to Sell the Refiners

About Valero Energy

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company’s primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.