Valero Energy (NYSE:VLO) Shares Climb 4.7% on Analyst Upgrade

Valero Energy Corporation (NYSE:VLO) shares were up 4.7% on Tuesday after Wells Fargo & Company raised their price target on the stock from $389.00 to $485.00. Wells Fargo & Company currently has an overweight rating on the stock. Valero Energy traded as high as $457.20 and last traded at $456.6280. Approximately 2,499,547 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 3,332,752 shares. The stock had previously closed at $436.00.

A number of other research analysts have also issued reports on VLO. Citigroup boosted their price target on shares of Valero Energy from $302.00 to $485.00 and gave the stock a “neutral” rating in a research note on Tuesday. UBS Group restated a “buy” rating and set a $467.00 target price on shares of Valero Energy in a research report on Tuesday, October 6th. The Goldman Sachs Group boosted their price objective on shares of Valero Energy from $365.00 to $457.00 and gave the stock a “buy” rating in a report on Wednesday, September 23rd. Barclays lifted their price objective on Valero Energy from $323.00 to $441.00 and gave the stock an “overweight” rating in a report on Tuesday, October 6th. Finally, Raymond James Financial increased their price target on shares of Valero Energy from $350.00 to $450.00 and gave the company a “strong-buy” rating in a research report on Monday, September 14th. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $382.62.

Valero Energy News Summary

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

• Positive Sentiment: Analysts raised their price targets: Wells Fargo lifted its target to $485 from $389 and upgraded VLO to “overweight.” Citigroup also raised its target to $485 from $302, although it retained a “neutral” rating. The revisions reflect stronger expectations for refining profitability and provide a bullish signal for investor sentiment. Wells Fargo Adjusts Price Target on Valero Energy Citigroup Raises VLO Target to $485
• Positive Sentiment: Refining-margin outlook remains favorable: Valero’s ability to source discounted heavy sour crude, including Canadian and potentially Venezuelan supplies, could support margins by lowering feedstock costs and improving refinery economics. Can Valero’s Heavy Crude Advantage Support Stronger Refining Margins?
• Positive Sentiment: Recent operating momentum is strong: Coverage points to resilient fuel demand and tighter product supply as key reasons Valero returned to substantial profitability. VLO was also included in a Zacks list of top-ranked growth stocks. What Did Valero Stock Investors Miss Before the Run?
• Neutral Sentiment: Earnings are approaching: Valero is scheduled to report quarterly results next week. Analysts expect earnings growth, and Erste Group raised its fiscal-year EPS estimates, but it continues to rate the shares “hold.” Valero Energy Set to Announce Quarterly Earnings
• Negative Sentiment: Beat expectations are not especially strong: Zacks says VLO lacks the combination of estimate revisions and earnings-surprise factors that typically signal a likely earnings beat. That caution may weigh on the stock ahead of results, particularly after its substantial recent advance. Valero Energy Earnings Expected to Grow

Institutional Inflows and Outflows

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

Valero Energy Stock Performance

The stock has a market cap of $127.97 billion, a P/E ratio of 18.44, a P/E/G ratio of 0.29 and a beta of 0.59. The firm has a 50 day moving average of $377.35 and a two-hundred day moving average of $301.37. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.23 and a current ratio of 1.64.

Valero Energy (NYSE:VLO) last released its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $10.11 by $2.43. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%. The business had revenue of $44.48 billion for the quarter, compared to analysts’ expectations of $39.47 billion. During the same period in the previous year, the business posted $2.28 earnings per share. Valero Energy’s quarterly revenue was up 48.8% on a year-over-year basis. On average, research analysts predict that Valero Energy Corporation will post 51.77 EPS for the current fiscal year.

Valero Energy Company Profile

Valero Energy Corporation is an international petroleum refining, renewable fuels and marketing company headquartered in San Antonio, Texas. Founded in 1980, the company processes crude oil and other feedstocks into transportation fuels and other products used by commercial, industrial and consumer customers.

Valero’s refined products include gasoline, diesel, jet fuel, asphalt, lubricants and petrochemical feedstocks. The company also produces and markets ethanol and renewable diesel, including through its Diamond Green Diesel joint venture with Darling Ingredients.