Valero Energy (NYSE:VLO) Hits New 1-Year High – What’s Next?

Valero Energy Corporation (NYSE:VLO) shares hit a new 52-week high during trading on Tuesday . The stock traded as high as $322.28 and last traded at $322.43, with a volume of 540262 shares trading hands. The stock had previously closed at $314.95.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Robust Q2 results: Valero reported $12.54 in quarterly EPS, well above the $10.11 consensus estimate, while revenue reached $44.48 billion versus expectations of $39.47 billion. Revenue increased 48.8% year over year, and EPS rose sharply from $2.28 in the prior-year period. Valero Energy Is Up After Robust Q2 Earnings and Buyback Completion
• Positive Sentiment: Large buyback completed: Valero repurchased 48.1 million shares for approximately $8.42 billion. The reduction in shares outstanding can support per-share earnings and signals management’s confidence in the company’s cash-generation capacity.
• Positive Sentiment: Higher earnings forecasts: Erste Group Bank raised its FY2026 EPS estimate to $42.13 from $33.58 and lifted its FY2027 forecast to $25.43 from $23.83. The FY2026 estimate is also above the broader consensus of $40.62, suggesting expectations for stronger near-term refining profitability. Valero Energy analyst estimates
• Positive Sentiment: Favorable investor positioning: Valero has been highlighted as a momentum stock and as a relatively low-leverage energy company. Analysts collectively maintain a “Moderate Buy” recommendation, while the stock’s valuation metrics remain supportive despite its strong rally.
• Neutral Sentiment: Momentum versus cyclicality: VLO is substantially above its 50-day and 200-day moving averages and near its one-year high. While this confirms strong momentum, it also raises the risk of profit-taking. Future performance will remain sensitive to refining margins, fuel demand and oil-market volatility.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. TD Cowen increased their price target on Valero Energy from $338.00 to $350.00 and gave the company a “hold” rating in a report on Monday, August 3rd. Piper Sandler reiterated an “overweight” rating and issued a $329.00 price target on shares of Valero Energy in a research report on Thursday, July 23rd. Citigroup lifted their price target on shares of Valero Energy from $259.00 to $302.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 14th. UBS Group boosted their price objective on shares of Valero Energy from $280.00 to $355.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, Wells Fargo & Company upped their price objective on Valero Energy from $292.00 to $356.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. Two research 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $288.00.

Valero Energy Price Performance

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 has a market cap of $95.18 billion, a PE ratio of 13.72, a P/E/G ratio of 0.21 and a beta of 0.55. The firm’s fifty day simple moving average is $280.52 and its two-hundred day simple moving average is $246.21.

Valero Energy (NYSE:VLO) last announced its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The firm had revenue of $44.48 billion during the quarter, compared to analysts’ expectations of $39.47 billion. During the same period in the prior year, the company posted $2.28 earnings per share. The company’s revenue for the quarter was up 48.8% compared to the same quarter last year. As a group, research analysts expect that Valero Energy Corporation will post 40.62 EPS for the current year.

Valero Energy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Friday, July 31st will be given a $1.20 dividend. This represents a $4.80 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, July 31st. Valero Energy’s payout ratio is presently 19.92%.

Insider Activity

In related news, SVP Eric A. Fisher sold 7,500 shares of the stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the completion of the sale, the senior vice president owned 19,742 shares in the company, valued at approximately $5,294,212.14. This trade represents a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.36% of the company’s stock.

Institutional Trading of Valero Energy

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. V Square Quantitative Management LLC increased its stake in Valero Energy by 0.6% during the 1st quarter. V Square Quantitative Management LLC now owns 6,670 shares of the oil and gas company’s stock worth $1,648,000 after acquiring an additional 42 shares during the period. M.E. Allison & CO. Inc. increased its stake in shares of Valero Energy by 5.8% in the 2nd quarter. M.E. Allison & CO. Inc. now owns 916 shares of the oil and gas company’s stock valued at $239,000 after purchasing an additional 50 shares during the last quarter. Ridgecrest Wealth Partners LLC raised its holdings in shares of Valero Energy by 5.0% during the 2nd quarter. Ridgecrest Wealth Partners LLC now owns 1,054 shares of the oil and gas company’s stock worth $275,000 after buying an additional 50 shares in the last quarter. CYBER HORNET ETFs LLC raised its holdings in shares of Valero Energy by 5.5% during the 4th quarter. CYBER HORNET ETFs LLC now owns 975 shares of the oil and gas company’s stock worth $159,000 after buying an additional 51 shares in the last quarter. Finally, Bruce G. Allen Investments LLC lifted its position in shares of Valero Energy by 32.9% during the 4th quarter. Bruce G. Allen Investments LLC now owns 206 shares of the oil and gas company’s stock worth $34,000 after buying an additional 51 shares during the last quarter. 78.69% of the stock is currently owned by institutional investors.

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.