Valero Energy (NYSE:VLO) Stock Falls 1% – What’s Next?

Valero Energy Corporation (NYSE:VLO) shares were down 1% during mid-day trading on Thursday. The company traded as low as $377.45 and last traded at $384.5620. Approximately 3,339,998 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 3,296,839 shares. The stock had previously closed at $388.48.

More Valero Energy News

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

• Positive Sentiment: Houston acquisition expands Valero’s refining footprint: Valero agreed to acquire LyondellBasell’s former Houston Refinery site and related assets for $320.5 million. The transaction is expected to close in the fourth quarter of 2026 and includes the assumption of site operations, environmental liabilities, pension costs and related employee obligations. The deal could provide strategic infrastructure and operational growth in a major refining market. Valero to Acquire Former Houston Refinery from LyondellBasell
• Positive Sentiment: Large buyback authorization supports the stock: Valero reportedly authorized up to $10 billion in share repurchases after a strong quarter, increasing its ability to return excess cash to shareholders and potentially support per-share earnings. Valero authorizes USD 10.0 billion buyback
• Positive Sentiment: Exceptional quarterly profitability remains a catalyst: Valero generated $6.8 billion of third-quarter net income, while management allocated $1.7 billion of 2026 capital guidance to sustaining operations. Strong cash generation and refining margins reinforce the company’s capacity for shareholder returns. Valero: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Analyst valuation views improved but remain mixed: A consolidated fair-value estimate reportedly increased to $426.42 from $401.53, while some analysts remain cautious after the stock’s significant multiyear gains. Another analysis argues that Valero may still be undervalued on current earnings. Valero Energy Stock Sees Fair Value Lift
• Negative Sentiment: Put-option activity signals hedging or bearish positioning: Traders bought approximately 16,660 VLO put options, about 41% above average volume. This may reflect increased concern about downside risk following the stock’s strong run.
• Negative Sentiment: Sector-wide profit-taking risk persists: Commentary argued that investors should consider selling refiners after an exceptionally strong year, suggesting concerns that refining margins and share prices may have peaked. It’s Time to Sell the Refiners

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on VLO. UBS Group reissued a “buy” rating and set a $467.00 price target on shares of Valero Energy in a research note on Tuesday, October 6th. Morgan Stanley upped their price objective on Valero Energy from $255.00 to $411.00 and gave the company an “equal weight” rating in a research note on Monday, September 14th. Zacks Research upgraded shares of Valero Energy from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 4th. Erste Group Bank lowered shares of Valero Energy from a “buy” rating to a “hold” rating in a report on Thursday, August 27th. Finally, Piper Sandler lifted their target price on shares of Valero Energy from $329.00 to $435.00 and gave the stock an “overweight” rating in a research report on Thursday, September 3rd. Three investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $379.94.

Valero Energy Stock Up 4.0%

The stock has a market cap of $115.18 billion, a price-to-earnings ratio of 9.00, a P/E/G ratio of 0.20 and a beta of 0.59. The company has a current ratio of 1.72, a quick ratio of 1.23 and a debt-to-equity ratio of 0.32. The stock’s 50-day moving average price is $397.64 and its 200-day moving average price is $285.06.

Valero Energy (NYSE:VLO) last announced its earnings results on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share for the quarter, topping analysts’ consensus estimates of $21.17 by $2.73. The business had revenue of $46.10 billion during the quarter, compared to the consensus estimate of $42.71 billion. Valero Energy had a net margin of 8.44% and a return on equity of 45.90%. Valero Energy’s quarterly revenue was up 43.3% on a year-over-year basis. During the same quarter last year, the firm earned $3.66 earnings per share. On average, sell-side analysts expect that Valero Energy Corporation will post 57.42 earnings per share for the current year.

Valero Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 21st. Shareholders of record on Tuesday, November 24th will be issued a $1.20 dividend. This represents a $4.80 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Tuesday, November 24th. Valero Energy’s payout ratio is presently 10.80%.

Hedge Funds Weigh In On Valero Energy

Several institutional investors have recently made changes to their positions in the stock. Blue Zone Wealth Advisors LLC increased its stake in Valero Energy by 2.4% in the 3rd quarter. Blue Zone Wealth Advisors LLC now owns 1,027 shares of the oil and gas company’s stock worth $398,000 after buying an additional 24 shares in the last quarter. Grove Bank & Trust lifted its position in Valero Energy by 1.0% during the third quarter. Grove Bank & Trust now owns 2,608 shares of the oil and gas company’s stock valued at $1,011,000 after purchasing an additional 25 shares during the last quarter. Sigma Planning Corp boosted its holdings in shares of Valero Energy by 0.4% in the 3rd quarter. Sigma Planning Corp now owns 7,171 shares of the oil and gas company’s stock worth $2,779,000 after purchasing an additional 29 shares during the period. Modera Wealth Management LLC boosted its stake in Valero Energy by 3.7% during the third quarter. Modera Wealth Management LLC now owns 956 shares of the oil and gas company’s stock worth $370,000 after buying an additional 34 shares during the period. Finally, Cornerstone Financial Management LLC lifted its stake in Valero Energy by 57.6% in the second quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company’s stock worth $27,000 after purchasing an additional 38 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.

About Valero Energy

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company’s primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.