Traders Buy Large Volume of Call Options on Valero Energy (NYSE:VLO)

Valero Energy Corporation (NYSE:VLO) was the recipient of some unusual options trading activity on Tuesday. Stock traders acquired 13,172 call options on the stock. This is an increase of 57% compared to the typical volume of 8,412 call options.

Insiders Place Their Bets

In related news, SVP Eric A. Fisher sold 7,500 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $268.17, for a total value of $2,011,275.00. Following the sale, the senior vice president owned 19,742 shares in the company, valued at approximately $5,294,212.14. This trade represents a 27.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.36% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Valero Energy

Several institutional investors have recently bought and sold shares of VLO. Ballast Inc. increased its holdings in Valero Energy by 7.4% in the 2nd quarter. Ballast Inc. now owns 6,217 shares of the oil and gas company’s stock valued at $1,619,000 after acquiring an additional 430 shares during the last quarter. Regent Peak Wealth Advisors LLC bought a new position in shares of Valero Energy during the 2nd quarter valued at about $205,000. Heck Capital Advisors LLC purchased a new position in Valero Energy during the 2nd quarter valued at approximately $286,000. Tema ETFs LLC grew its holdings in Valero Energy by 10.2% during the 2nd quarter. Tema ETFs LLC now owns 6,270 shares of the oil and gas company’s stock valued at $1,633,000 after buying an additional 580 shares in the last quarter. Finally, HRC Wealth Management LLC bought a new stake in Valero Energy in the 2nd quarter worth approximately $208,000. 78.69% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

VLO has been the subject of a number of research reports. Raymond James Financial boosted their target price on shares of Valero Energy from $300.00 to $340.00 and gave the company a “strong-buy” rating in a research note on Monday. Mizuho lifted their price objective on Valero Energy from $222.00 to $289.00 and gave the stock a “neutral” rating in a report on Wednesday, May 27th. Wall Street Zen raised Valero Energy from a “buy” rating to a “strong-buy” rating in a report on Saturday, April 4th. Piper Sandler raised their target price on Valero Energy from $236.00 to $263.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 8th. Finally, Wells Fargo & Company boosted their price target on Valero Energy from $220.00 to $292.00 and gave the company an “overweight” rating in a research note on Tuesday, March 31st. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $253.06.

Trending Headlines about Valero Energy

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

• Positive Sentiment: Citigroup raised its price target on Valero Energy to $302 from $259, while Raymond James lifted its target to $340 and reiterated a strong-buy view, signaling continued analyst confidence in the stock’s outlook.
• Positive Sentiment: Valero saw unusually large call option buying, with 13,172 contracts traded versus an average of 8,412, suggesting traders are positioning for further upside.
• Positive Sentiment: Articles citing renewed Middle East tensions and disruptions around the Strait of Hormuz point to higher gasoline and refined-product prices, which can support Valero’s refining margins and earnings.
• Positive Sentiment: Recent coverage also highlighted Valero’s strong stock performance over the past year and year to date, reinforcing momentum-driven interest from investors.
• Neutral Sentiment: Valero was mentioned in broader market commentary about energy stocks benefiting from higher U.S. gas prices, but this was not a company-specific development.
• Neutral Sentiment: A Zacks note said Valero has outperformed the market recently, but it was more of a performance recap than a new fundamental catalyst.

Valero Energy Stock Performance

NYSE VLO opened at $300.26 on Wednesday. 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 twelve month low of $130.78 and a twelve month high of $301.43. The business has a 50-day moving average price of $255.16 and a 200-day moving average price of $226.88. The firm has a market cap of $89.16 billion, a price-to-earnings ratio of 21.82, a price-to-earnings-growth ratio of 0.37 and a beta of 0.55.

Valero Energy (NYSE:VLO) last issued its earnings results on Thursday, April 30th. The oil and gas company reported $4.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.16 by $1.06. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.The company had revenue of $32.38 billion for the quarter, compared to the consensus estimate of $31.38 billion. During the same quarter last year, the company earned $0.89 EPS. The firm’s quarterly revenue was up 7.0% on a year-over-year basis. As a group, equities research analysts predict that Valero Energy will post 31.04 EPS for the current fiscal year.

Valero Energy Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Thursday, May 21st were issued a $1.20 dividend. This represents a $4.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Thursday, May 21st. Valero Energy’s payout ratio is 34.88%.

About Valero Energy

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.