Valero Energy Target of Unusually High Options Trading (NYSE:VLO)

Valero Energy Corporation (NYSE:VLO) saw some unusual options trading on Thursday. Traders bought 11,077 put options on the company. This represents an increase of approximately 31% compared to the typical volume of 8,480 put options.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Valero has benefited from repeated analyst upgrades and higher price targets, including Citigroup lifting its target to $302, which helped reinforce the stock’s recent strength and pushed shares to new highs. Valero Energy had its price target raised by Citigroup Inc. from $259.00 to $302.00.
• Positive Sentiment: Several articles highlighted Valero’s rising earnings estimates and momentum profile, suggesting investors expect improving fundamentals and continued upside potential. Can Valero Energy (VLO) Run Higher on Rising Earnings Estimates?
• Positive Sentiment: Refining-sector optimism is also supportive, with strong refining margins and tight fuel markets seen as favorable for companies like Valero’s peer Marathon Petroleum, which can spill over to sentiment across the refining group. How Current Refining Margins Are Driving an Edge for MPC (Revised)
• Neutral Sentiment: Valero saw unusually heavy options activity, with both call and put buying above average. That can signal elevated investor interest, but it does not clearly point to one direction.
• Neutral Sentiment: Recent coverage also framed Valero as a top-ranked value stock and a recent market outperformer, reinforcing that the stock has already had a strong move and may now be trading on expectations rather than fresh company-specific news. Valero Energy (VLO) is a Top-Ranked Value Stock: Should You Buy?
• Negative Sentiment: Heavy put buying on Thursday suggests some traders are hedging against a pullback after the sharp rally, which may reflect concern that the stock has moved too far, too fast.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on VLO shares. Barclays raised their price objective on shares of Valero Energy from $261.00 to $279.00 and gave the stock an “overweight” rating in a report on Wednesday, July 1st. UBS Group reaffirmed a “buy” rating and set a $280.00 target price on shares of Valero Energy in a report on Thursday, June 11th. Morgan Stanley increased their price target on shares of Valero Energy from $232.00 to $255.00 and gave the stock an “equal weight” rating in a research report on Friday, June 12th. Raymond James Financial boosted their price objective on shares of Valero Energy from $300.00 to $340.00 and gave the company a “strong-buy” rating in a research report on Monday. Finally, Scotiabank upped their price objective on Valero Energy from $178.00 to $226.00 and gave the stock a “sector outperform” rating in a research note on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $253.06.

Insiders Place Their Bets

In other Valero Energy news, SVP Eric A. Fisher sold 7,500 shares of the firm’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $268.17, for a total value of $2,011,275.00. Following the transaction, the senior vice president directly owned 19,742 shares of the company’s stock, 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 is accessible through this hyperlink. Corporate insiders own 0.36% of the company’s stock.

Institutional Investors Weigh In On Valero Energy

A number of institutional investors have recently added to or reduced their stakes in the stock. Whipplewood Advisors LLC lifted its holdings in shares of Valero Energy by 3,400.0% in the first quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company’s stock worth $26,000 after buying an additional 102 shares in the last quarter. JPL Wealth Management LLC purchased a new stake in Valero Energy in the 3rd quarter worth $27,000. Financial Life Planners purchased a new position in shares of Valero Energy during the first quarter valued at about $28,000. Valued Wealth Advisors LLC increased its holdings in shares of Valero Energy by 134.0% in the first quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company’s stock worth $29,000 after purchasing an additional 67 shares during the last quarter. Finally, Torren Management LLC purchased a new stake in shares of Valero Energy in the fourth quarter worth about $30,000. 78.69% of the stock is owned by hedge funds and other institutional investors.

Valero Energy Price Performance

Shares of VLO traded up $9.81 during trading hours on Thursday, reaching $302.48. 959,594 shares of the stock traded hands, compared to its average volume of 3,483,621. The company has a market cap of $89.81 billion, a P/E ratio of 21.97, a price-to-earnings-growth ratio of 0.37 and a beta of 0.55. The company has a current ratio of 1.58, a quick ratio of 1.15 and a debt-to-equity ratio of 0.39. The company’s 50-day moving average price is $256.30 and its two-hundred day moving average price is $227.80. Valero Energy has a 52-week low of $130.78 and a 52-week high of $303.64.

Valero Energy (NYSE:VLO) last issued its quarterly earnings results on Thursday, April 30th. The oil and gas company reported $4.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.16 by $1.06. The business had revenue of $32.38 billion during the quarter, compared to analyst estimates of $31.38 billion. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.Valero Energy’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.89 EPS. On average, analysts anticipate that Valero Energy will post 32.04 earnings per share for the current year.

Valero Energy Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Thursday, May 21st were given a dividend of $1.20 per share. The ex-dividend date was Thursday, May 21st. This represents a $4.80 annualized dividend and a dividend yield of 1.6%. Valero Energy’s dividend payout ratio (DPR) is currently 34.88%.

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.