Erste Group Bank Cuts Earnings Estimates for Valero Energy

Valero Energy Corporation (NYSE:VLO) – Research analysts at Erste Group Bank decreased their FY2027 earnings per share estimates for Valero Energy in a note issued to investors on Friday, May 15th. Erste Group Bank analyst H. Engel now expects that the oil and gas company will earn $18.94 per share for the year, down from their previous estimate of $19.02. The consensus estimate for Valero Energy’s current full-year earnings is $28.26 per share.

Valero Energy (NYSE:VLO) last issued its earnings results on Thursday, April 30th. The oil and gas company reported $4.22 EPS for the quarter, topping the consensus estimate of $3.16 by $1.06. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. The company had revenue of $32.38 billion for the quarter, compared to analyst estimates of $31.38 billion. During the same period in the previous year, the firm earned $0.89 EPS. The business’s revenue was up 7.0% on a year-over-year basis.

VLO has been the topic of several other reports. TD Cowen upped their target price on shares of Valero Energy from $255.00 to $276.00 and gave the stock a “hold” rating in a research report on Monday, May 4th. BMO Capital Markets lifted their price target on shares of Valero Energy from $230.00 to $270.00 and gave the company an “outperform” rating in a research report on Monday, April 6th. Zacks Research raised Valero Energy from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 21st. The Goldman Sachs Group upped their price target on Valero Energy from $203.00 to $237.00 and gave the stock a “buy” rating in a report on Thursday, March 12th. Finally, Piper Sandler raised their price objective on Valero Energy from $236.00 to $263.00 and gave the company an “overweight” rating in a research note on Wednesday, April 8th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Valero Energy currently has an average rating of “Moderate Buy” and an average price target of $237.94.

Valero Energy Stock Performance

Shares of VLO opened at $258.39 on Tuesday. The company has a quick ratio of 1.15, a current ratio of 1.58 and a debt-to-equity ratio of 0.39. Valero Energy has a 52-week low of $125.10 and a 52-week high of $260.31. The company has a 50-day simple moving average of $239.59 and a 200-day simple moving average of $202.50. The company has a market capitalization of $76.72 billion, a PE ratio of 18.78, a P/E/G ratio of 0.35 and a beta of 0.58.

Valero Energy Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Thursday, May 21st will be given a dividend of $1.20 per share. The ex-dividend date is Thursday, May 21st. This represents a $4.80 dividend on an annualized basis and a yield of 1.9%. Valero Energy’s payout ratio is presently 34.88%.

Insider Transactions at Valero Energy

In other Valero Energy news, SVP Eric A. Fisher sold 8,311 shares of the company’s stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $227.69, for a total value of $1,892,331.59. Following the sale, the senior vice president owned 42,242 shares of the company’s stock, valued at $9,618,080.98. This represents a 16.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.36% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. V Square Quantitative Management LLC lifted its stake in Valero Energy by 0.6% in the 1st quarter. V Square Quantitative Management LLC now owns 6,670 shares of the oil and gas company’s stock valued at $1,648,000 after buying an additional 42 shares in the last quarter. CYBER HORNET ETFs LLC increased its position in Valero Energy by 5.5% during the fourth 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. Bruce G. Allen Investments LLC raised its holdings in shares of Valero Energy by 32.9% in the fourth quarter. Bruce G. Allen Investments LLC now owns 206 shares of the oil and gas company’s stock worth $34,000 after acquiring an additional 51 shares during the last quarter. Providence Wealth Advisors LLC raised its holdings in shares of Valero Energy by 0.5% in the fourth quarter. Providence Wealth Advisors LLC now owns 9,610 shares of the oil and gas company’s stock worth $1,564,000 after acquiring an additional 52 shares during the last quarter. Finally, KPP Advisory Services LLC lifted its position in shares of Valero Energy by 2.5% in the first quarter. KPP Advisory Services LLC now owns 2,156 shares of the oil and gas company’s stock valued at $533,000 after acquiring an additional 52 shares in the last quarter. 78.69% of the stock is owned by hedge funds and other institutional investors.

Valero Energy News Summary

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

• Positive Sentiment: Valero remains a favored value and growth idea in recent screens, with Zacks placing VLO on its Rank #1 (Strong Buy) growth list and highlighting it as a strong value stock.
• Positive Sentiment: Recent coverage says Valero’s earnings estimate revisions are moving higher, which can signal stronger future fundamentals and support the stock.
• Positive Sentiment: Valero’s latest quarterly results were strong, with the company beating EPS and revenue expectations and management expected refining margins to remain solid.
• Neutral Sentiment: Several articles pointed to Valero as a possible dividend play, which may attract income-focused investors but is less likely to move the stock on its own.
• Neutral Sentiment: MarketWatch noted Valero outperformed peers on a strong trading day, reflecting relative strength rather than a new company-specific catalyst.
• Negative Sentiment: Erste Group Bank slightly lowered its FY2027 EPS estimate for Valero, trimming its forecast from $19.02 to $18.94, though the revision was modest.

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.