Valero Energy (NYSE:VLO) Stock Falls 3.3% – Should You Sell?

Shares of Valero Energy Corporation (NYSE:VLO) dropped 3.3% during mid-day trading on Thursday. The company traded as low as $437.02 and last traded at $444.4450. 2,512,636 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 3,322,583 shares. The stock had previously closed at $459.78.

More Valero Energy News

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

• Positive Sentiment: Analysts expect third-quarter earnings to surge approximately 480.1% year over year, supported by strong refining margins and tight fuel markets. Valero is scheduled to report on October 22. Valero Energy Gears Up to Report Q3 Earnings: What’s in the Cards?
• Positive Sentiment: Valero’s ability to process discounted heavy sour crude, including Canadian and potentially Venezuelan supplies, could support stronger capture rates and refining profitability by lowering feedstock costs. Can Valero’s Heavy Crude Advantage Support Stronger Refining Margins?
• Positive Sentiment: Zacks added VLO to its Rank #1, or Strong Buy, growth-stock list. Wells Fargo raised its price target to $485 from $389, while Citigroup lifted its target to $485 and cited long-term refinery capture potential and wider heavy-crude discounts. Wells Fargo Adjusts Price Target on Valero Energy
• Neutral Sentiment: Valuation analysts raised their fair-value estimate from about $360 to roughly $402 as margin and capital-return expectations improved, but ratings remain mixed and the stock’s recent run has been unusually strong. Valero Energy Stock Fair Value Rises
• Negative Sentiment: Rising crude costs could reduce refining margins, and analysts caution that VLO may be fully priced after its sharp rally. The stock also declined in the prior session while the broader market gained, highlighting profit-taking and sensitivity to earnings expectations. Valero Energy Stock Looks Fully Priced

Analysts Set New Price Targets

Several brokerages have commented on VLO. Barclays upped their target price on shares of Valero Energy from $323.00 to $441.00 and gave the company an “overweight” rating in a research report on Tuesday, October 6th. Mizuho lifted their price objective on Valero Energy from $300.00 to $434.00 and gave the stock a “neutral” rating in a research note on Thursday, October 8th. UBS Group reiterated a “buy” rating and issued a $467.00 price objective on shares of Valero Energy in a report on Tuesday, October 6th. Raymond James Financial upped their price objective on Valero Energy from $350.00 to $450.00 and gave the company a “strong-buy” rating in a report on Monday, September 14th. Finally, Citigroup increased their target price on Valero Energy from $302.00 to $485.00 and gave the company a “neutral” rating in a research note on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $382.62.

Valero Energy Price Performance

The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. The stock has a market cap of $128.17 billion, a P/E ratio of 18.47, a P/E/G ratio of 0.28 and a beta of 0.59. The company’s 50 day simple moving average is $383.13 and its 200 day simple moving average is $303.70.

Valero Energy (NYSE:VLO) last posted its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, topping the consensus estimate of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The company had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. During the same period last year, the business posted $2.28 earnings per share. The business’s revenue for the quarter was up 48.8% compared to the same quarter last year. As a group, equities analysts forecast that Valero Energy Corporation will post 51.77 earnings per share for the current year.

Institutional Investors Weigh In On Valero Energy

Several large investors have recently modified their holdings of VLO. Cornerstone Financial Management LLC grew its position in shares of Valero Energy by 57.6% in the 2nd quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company’s stock valued at $27,000 after purchasing an additional 38 shares during the period. Whipplewood Advisors LLC increased its position in shares of Valero Energy by 3,400.0% during the first quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company’s stock worth $26,000 after acquiring an additional 102 shares in the last quarter. Financial Life Planners bought a new stake in shares of Valero Energy during the first quarter worth $28,000. Valued Wealth Advisors LLC increased its position in shares of Valero Energy by 134.0% during the first quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company’s stock worth $29,000 after acquiring an additional 67 shares in the last quarter. Finally, Global Assets Advisory LLC acquired a new stake in shares of Valero Energy during the first quarter worth $33,000. 78.69% of the stock is currently owned by institutional investors.

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.