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

Valero Energy Corporation (NYSE:VLO)’s share price was up 4.7% during mid-day trading 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 session volume of 3,332,752 shares. The stock had previously closed at $436.00.

Several other equities analysts have also issued reports on the company. Weiss Ratings upgraded Valero Energy from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, October 8th. Raymond James Financial raised their price objective on shares of Valero Energy from $350.00 to $450.00 and gave the stock a “strong-buy” rating in a report on Monday, September 14th. The Goldman Sachs Group boosted their price objective on shares of Valero Energy from $365.00 to $457.00 and gave the company a “buy” rating in a research report on Wednesday, September 23rd. Citigroup boosted their price objective on shares of Valero Energy from $302.00 to $485.00 and gave the company a “neutral” rating in a research report on Tuesday. Finally, Jefferies Financial Group lowered their target price on Valero Energy from $401.00 to $394.00 and set a “hold” rating for the company in a report on Thursday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $382.62.

More Valero Energy News

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

Hedge Funds Weigh In On Valero Energy

Several institutional investors and hedge funds have recently modified their holdings of VLO. Grove Bank & Trust lifted its holdings in Valero Energy by 1.0% during the 3rd quarter. Grove Bank & Trust now owns 2,608 shares of the oil and gas company’s stock worth $1,011,000 after buying an additional 25 shares during the period. QRG Capital Management Inc. increased 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 valued at $15,251,000 after buying an additional 3,037 shares during the period. Envestnet Portfolio Solutions Inc. increased its stake in shares of Valero Energy by 24.1% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 6,454 shares of the oil and gas company’s stock valued at $1,681,000 after buying an additional 1,255 shares during the period. Security National Bank of SO Dak bought a new position in shares of Valero Energy during the second quarter worth about $108,000. Finally, Bouchey Financial Group Ltd. raised its position in shares of Valero Energy by 4.6% during the second quarter. Bouchey Financial Group Ltd. now owns 1,016 shares of the oil and gas company’s stock worth $265,000 after acquiring an additional 45 shares during the last quarter. 78.69% of the stock is currently owned by institutional investors and hedge funds.

Valero Energy Stock Performance

The stock has a 50 day moving average of $377.35 and a 200 day moving average of $301.37. 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 capitalization of $127.97 billion, a price-to-earnings ratio of 18.44, a price-to-earnings-growth ratio of 0.29 and a beta of 0.59.

Valero Energy (NYSE:VLO) last released its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, beating 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 business had revenue of $44.48 billion during the quarter, compared to the consensus estimate of $39.47 billion. During the same quarter in the prior year, the firm posted $2.28 EPS. The company’s revenue for the quarter was up 48.8% compared to the same quarter last year. As a group, analysts predict that Valero Energy Corporation will post 51.77 EPS for the current 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.