Valero Energy (NYSE:VLO) Hits New 12-Month High – Time to Buy?

Valero Energy Corporation (NYSE:VLO) shares hit a new 52-week high on Wednesday . The company traded as high as $193.33 and last traded at $190.1220, with a volume of 539832 shares trading hands. The stock had previously closed at $184.73.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Board raised the quarterly dividend to $1.20 (annualized $4.80), up 6.2% from $1.13; ex-dividend date Feb 5 and payable March 9 — a clear capital-return boost that typically supports the stock. Valero Energy Corporation Increases Regular Cash Dividend on Common Stock
• Positive Sentiment: Analysts and research pieces highlight Valero as positioned to benefit if crude softens — lower crude can widen refining margins and improve downstream results, which would boost earnings and cash flow. What Lies Ahead for Valero With Prevailing Softness in Crude Price
• Positive Sentiment: Preview coverage expects VLO to deliver an earnings beat next week, citing factors that historically drive upside for refiners — this can fuel short-term upside if results beat consensus. Valero Energy (VLO) Earnings Expected to Grow: What to Know Ahead of Next Week’s Release
• Neutral Sentiment: Valero was highlighted by VanEck among oil plays — increased investor/inflow attention can help multiple expansion but is not a direct earnings catalyst. VanEck spotlights SLB, HAL, BKR, PSX, and VLO as oil plays
• Neutral Sentiment: Valero reportedly bought a Venezuelan crude cargo under Washington’s deal with Caracas — could provide incremental supply at favorable economics, but carries geopolitical/operational uncertainty. Exclusive: Valero buys Venezuelan oil cargo as part of Washington’s deal with Caracas
• Neutral Sentiment: Coverage flags mixed valuation signals — P/E and DCF analyses give conflicting indications on whether the stock is fairly valued, creating ambiguity for longer-term buyers. A Look At Valero Energy (VLO) Valuation As P/E And DCF Send Mixed Signals
• Negative Sentiment: Zacks Research downgraded VLO from “strong-buy” to “hold,” which can dampen near-term momentum from institutional or retail investors following that flow. Zacks.com

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Bank of America reaffirmed a “neutral” rating and set a $195.00 price objective (down previously from $198.00) on shares of Valero Energy in a research report on Thursday, December 11th. JPMorgan Chase & Co. upped their price objective on Valero Energy from $197.00 to $200.00 and gave the stock an “overweight” rating in a research report on Thursday, January 8th. Erste Group Bank began coverage on Valero Energy in a report on Monday, November 10th. They issued a “buy” rating for the company. Piper Sandler cut their price target on Valero Energy from $223.00 to $217.00 and set an “overweight” rating on the stock in a report on Thursday, January 8th. Finally, Barclays increased their price target on Valero Energy from $169.00 to $184.00 and gave the company an “overweight” rating in a research report on Monday, November 17th. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $183.00.

Valero Energy Price Performance

The stock has a market capitalization of $57.01 billion, a price-to-earnings ratio of 39.02, a P/E/G ratio of 1.12 and a beta of 0.77. The company has a quick ratio of 1.09, a current ratio of 1.60 and a debt-to-equity ratio of 0.36. The stock has a fifty day moving average of $174.62 and a 200-day moving average of $162.20.

Valero Energy (NYSE:VLO) last issued its earnings results on Thursday, October 23rd. The oil and gas company reported $3.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.51. The business had revenue of $32.17 billion during the quarter, compared to analysts’ expectations of $28.80 billion. Valero Energy had a net margin of 1.21% and a return on equity of 8.69%. The company’s revenue for the quarter was down 2.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.14 EPS. On average, equities research analysts predict that Valero Energy Corporation will post 7.92 EPS for the current fiscal year.

Valero Energy Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 9th. Investors of record on Thursday, February 5th will be given a $1.20 dividend. This is a positive change from Valero Energy’s previous quarterly dividend of $1.13. The ex-dividend date is Thursday, February 5th. This represents a $4.80 annualized dividend and a yield of 2.6%. Valero Energy’s payout ratio is currently 94.36%.

Insider Transactions at Valero Energy

In other Valero Energy news, CFO Jason W. Fraser sold 9,933 shares of Valero Energy stock in a transaction on Friday, November 21st. The shares were sold at an average price of $174.02, for a total value of $1,728,540.66. Following the transaction, the chief financial officer directly owned 134,196 shares in the company, valued at approximately $23,352,787.92. The trade was a 6.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.04% of the company’s stock.

Hedge Funds Weigh In On Valero Energy

A number of hedge funds and other institutional investors have recently made changes to their positions in VLO. Robeco Institutional Asset Management B.V. lifted its stake in shares of Valero Energy by 24.7% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 565,171 shares of the oil and gas company’s stock valued at $92,004,000 after purchasing an additional 112,118 shares during the period. Diversify Advisory Services LLC increased its holdings in Valero Energy by 65.4% in the fourth quarter. Diversify Advisory Services LLC now owns 2,148 shares of the oil and gas company’s stock valued at $350,000 after buying an additional 849 shares in the last quarter. Venturi Wealth Management LLC lifted its position in shares of Valero Energy by 2.7% during the 4th quarter. Venturi Wealth Management LLC now owns 2,758 shares of the oil and gas company’s stock valued at $449,000 after acquiring an additional 72 shares during the period. Premier Path Wealth Partners LLC boosted its stake in shares of Valero Energy by 6.3% during the 4th quarter. Premier Path Wealth Partners LLC now owns 1,970 shares of the oil and gas company’s stock worth $321,000 after acquiring an additional 116 shares in the last quarter. Finally, Apollon Wealth Management LLC grew its holdings in shares of Valero Energy by 4.3% in the 4th quarter. Apollon Wealth Management LLC now owns 10,421 shares of the oil and gas company’s stock worth $1,696,000 after acquiring an additional 425 shares during the period. Hedge funds and other institutional investors own 78.69% of the company’s stock.

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.