Valero Energy Receives “Moderate Buy” Rating from Analysts

Valero Energy Corporation (NYSE: VLO) has garnered a consensus recommendation of “Moderate Buy” from the twenty research firms monitoring the company, according to MarketBeat Ratings. This outlook reflects a blend of opinions, with eight analysts rating the stock as a hold, nine as a buy, and three as a strong buy. The average target price set by brokers over the past year is $183.20.

Several investment firms have recently updated their assessments of Valero Energy. On October 24, 2023, Raymond James Financial reaffirmed a “strong buy” rating and increased its price target from $181.00 to $195.00. Similarly, TD Cowen raised its target from $162.00 to $165.00, maintaining a hold rating. Another firm, Wells Fargo & Company, adjusted its price target from $216.00 to $220.00 while giving the stock an “overweight” rating. Additionally, Mizuho reaffirmed a “neutral” rating with a revised price objective of $192.00.

Institutional Investors Adjust Holdings

Recent shifts in institutional investment reflect growing interest in Valero Energy. JPL Wealth Management LLC acquired a new position in the third quarter valued at $27,000. Meanwhile, Highline Wealth Partners LLC increased its stake by 70.2%, now owning 160 shares worth $27,000 after purchasing an additional 66 shares. Other notable transactions included Hoey Investments Inc. acquiring a new position worth about $26,000, and Cypress Capital Management LLC purchasing shares valued at approximately $34,000. Institutional investors now hold 78.69% of Valero Energy’s stock.

Valero Energy’s stock opened at $165.31 on Tuesday. The company has a market capitalization of $50.42 billion, with a price-to-earnings ratio of 34.51 and a PEG ratio of 0.94. Its fifty-day moving average stands at $171.66, while the two-hundred-day moving average is $157.91. Over the past year, the stock has fluctuated between a low of $99.00 and a high of $185.62.

Recent Earnings and Dividend Announcement

On October 23, 2023, Valero Energy reported its quarterly earnings, revealing earnings per share (EPS) of $3.66, surpassing analysts’ expectations of $3.15 by $0.51. The company achieved a net revenue of $32.17 billion, exceeding estimates of $28.80 billion. Although this figure reflects a 2.2% decrease from the previous year, analysts anticipate Valero Energy will report an EPS of $7.92 for the current year.

In addition, Valero Energy has declared a quarterly dividend of $1.13 per share, paid on December 18, 2023. Shareholders of record on November 20 received this dividend, which translates to an annualized dividend of $4.52 and a yield of 2.7%. The company’s dividend payout ratio currently stands at 94.36%.

Valero Energy, based in San Antonio, Texas, operates as an integrated downstream energy company. It specializes in refining crude oil into various fuels, including gasoline, diesel, and jet fuel, while also producing asphalt and other industrial products. The company has expanded its operations into renewable fuels, producing ethanol and biofuels, and maintains a robust logistics network for transporting both feedstocks and finished products.