Valero Energy (NYSE:VLO) Shares Up 4% – Here’s Why

Valero Energy Corporation (NYSE:VLO) rose 4% during mid-day trading on Friday. The company traded as high as $400.60 and last traded at $400.04. 4,223,414 shares changed hands during mid-day trading, an increase of 28% from the average daily volume of 3,301,728 shares. The stock had previously closed at $384.57.

More Valero Energy News

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

• Positive Sentiment: $10 billion share-repurchase authorization: Valero reportedly approved substantial additional buyback capacity following a strong quarter. Repurchases could support earnings per share and provide a significant source of shareholder returns. Valero authorizes USD 10.0 billion buyback
• Positive Sentiment: Strong operating performance and favorable valuation: Valero’s latest quarterly results substantially exceeded expectations, with $23.90 in earnings per share and $46.1 billion in revenue. Analysts’ consolidated fair-value estimate rose to approximately $426.42 from $401.53, while the stock’s reported P/E ratio remains below 9, supporting the view that earnings may still justify the valuation. Valero fair value lift
• Positive Sentiment: Houston refinery-site acquisition: Valero agreed to acquire LyondellBasell’s former Houston refinery site and related assets for $320.5 million. The purchase could expand Valero’s Houston infrastructure and refining footprint at a relatively modest cost, with closing expected in the fourth quarter of 2026. Valero to acquire former Houston refinery
• Neutral Sentiment: Put-option activity increased: Traders bought roughly 16,660 put options, about 41% above average volume. This may indicate increased hedging or bearish speculation, but options activity alone does not establish a definitive outlook for VLO.
• Negative Sentiment: Refining-cycle concerns: Commentary urging investors to sell refiners highlights the risk that unusually strong margins and a major rally have already been priced in. If gasoline and diesel cracks weaken, Valero’s earnings and valuation could face pressure. It’s Time to Sell the Refiners

Analysts Set New Price Targets

Several analysts have commented on the stock. Morgan Stanley boosted their target price on shares of Valero Energy from $255.00 to $411.00 and gave the stock an “equal weight” rating in a research report on Monday, September 14th. Zacks Research upgraded shares of Valero Energy from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 4th. Raymond James Financial lifted their price objective on shares of Valero Energy from $350.00 to $450.00 and gave the company a “strong-buy” rating in a research note on Monday, September 14th. Mizuho upped their price objective on shares of Valero Energy from $300.00 to $434.00 and gave the stock a “neutral” rating in a report on Thursday, October 8th. Finally, Piper Sandler increased their target price on shares of Valero Energy from $329.00 to $435.00 and gave the stock an “overweight” rating in a research report on Thursday, September 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $379.94.

Valero Energy Stock Performance

The stock’s 50-day moving average price is $396.46 and its 200 day moving average price is $283.96. 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 company has a market cap of $115.18 billion, a P/E ratio of 9.00, a price-to-earnings-growth ratio of 0.20 and a beta of 0.59.

Valero Energy (NYSE:VLO) last posted its quarterly earnings data 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 net margin of 8.44% and a return on equity of 47.50%. The business had revenue of $46.10 billion during the quarter, compared to the consensus estimate of $42.71 billion. During the same period in the prior year, the firm earned $3.66 EPS. Valero Energy’s quarterly revenue was up 43.3% compared to the same quarter last year. As a group, research analysts expect that Valero Energy Corporation will post 57.42 EPS for the current fiscal year.

Valero Energy Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Tuesday, November 24th will be given a $1.20 dividend. This represents a $4.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, November 24th. Valero Energy’s dividend payout ratio (DPR) is currently 10.80%.

Hedge Funds Weigh In On Valero Energy

A number of institutional investors have recently made changes to their positions in the business. Moore Capital Management LP acquired a new position in shares of Valero Energy during the second quarter worth approximately $13,193,000. QRG Capital Management Inc. grew its stake in shares of Valero Energy by 5.5% in the second quarter. QRG Capital Management Inc. now owns 58,558 shares of the oil and gas company’s stock worth $15,251,000 after acquiring an additional 3,037 shares during the last quarter. Jennison Associates LLC increased its position in Valero Energy by 377.1% during the first quarter. Jennison Associates LLC now owns 413,437 shares of the oil and gas company’s stock worth $102,152,000 after acquiring an additional 326,777 shares during the period. Journey Advisory Group LLC increased its position in Valero Energy by 23.3% during the first quarter. Journey Advisory Group LLC now owns 21,676 shares of the oil and gas company’s stock worth $5,356,000 after acquiring an additional 4,098 shares during the period. Finally, National Pension Service raised its stake in Valero Energy by 1.0% during the 2nd quarter. National Pension Service now owns 549,675 shares of the oil and gas company’s stock valued at $143,157,000 after purchasing an additional 5,609 shares during the last quarter. 78.69% of the stock is currently owned by institutional investors.

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.