Investors Buy Large Volume of Valero Energy Put Options (NYSE:VLO)

Valero Energy Corporation (NYSE:VLO) was the target of unusually large options trading on Friday. Stock traders acquired 16,660 put options on the company. This represents an increase of 41% compared to the typical volume of 11,821 put options.

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 Analyst Weigh In

VLO has been the topic of a number of research analyst reports. Piper Sandler boosted their target price on Valero Energy from $329.00 to $435.00 and gave the company an “overweight” rating in a research report on Thursday, September 3rd. UBS Group reiterated a “buy” rating and issued a $467.00 price objective on shares of Valero Energy in a report on Tuesday, October 6th. The Goldman Sachs Group increased their target price on Valero Energy from $365.00 to $457.00 and gave the stock a “buy” rating in a research note on Wednesday, September 23rd. Weiss Ratings upgraded Valero Energy from a “buy (b+)” rating to a “buy (a-)” rating in a report on Thursday. Finally, Citigroup lifted their target price on Valero Energy from $485.00 to $490.00 and gave the company a “neutral” rating in a research report on Friday, October 23rd. Three equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Valero Energy presently has a consensus rating of “Moderate Buy” and a consensus price target of $379.94.

Hedge Funds Weigh In On Valero Energy

A number of institutional investors have recently made changes to their positions in VLO. Bank of America Corp DE raised its stake in shares of Valero Energy by 11.4% during the first quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company’s stock valued at $1,243,630,000 after purchasing an additional 516,975 shares in the last quarter. Bank of New York Mellon Corp boosted its position in shares of Valero Energy by 9.4% in the 1st quarter. Bank of New York Mellon Corp now owns 2,969,320 shares of the oil and gas company’s stock valued at $733,660,000 after purchasing an additional 254,604 shares during the period. Arrowstreet Capital Limited Partnership grew its position in Valero Energy by 18.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,842,339 shares of the oil and gas company’s stock worth $702,285,000 after purchasing an additional 442,177 shares in the last quarter. Amundi raised its position in Valero Energy by 45.3% during the first quarter. Amundi now owns 2,584,976 shares of the oil and gas company’s stock valued at $638,695,000 after buying an additional 806,018 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Valero Energy by 33.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,058,341 shares of the oil and gas company’s stock valued at $536,074,000 after acquiring an additional 520,642 shares in the last quarter. 78.69% of the stock is owned by institutional investors and hedge funds.

Valero Energy Stock Up 4.0%

VLO traded up $15.47 on Friday, reaching $400.04. The company’s stock had a trading volume of 4,224,597 shares, compared to its average volume of 3,301,890. The company has a quick ratio of 1.23, a current ratio of 1.64 and a debt-to-equity ratio of 0.37. Valero Energy has a fifty-two week low of $159.90 and a fifty-two week high of $461.52. The company has a market capitalization 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 stock has a 50 day moving average of $397.64 and a two-hundred day moving average of $285.06.

Valero Energy (NYSE:VLO) last issued its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $21.17 by $2.73. The company had revenue of $46.10 billion for the quarter, compared to analyst estimates of $42.71 billion. Valero Energy had a return on equity of 47.50% and a net margin of 8.44%. The business’s quarterly revenue was up 43.3% compared to the same quarter last year. During the same quarter last year, the company posted $3.66 earnings per share. As a group, analysts forecast that Valero Energy will post 57.42 EPS for the current fiscal 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 given a dividend of $1.20 per share. The ex-dividend date is Tuesday, November 24th. This represents a $4.80 annualized dividend and a yield of 1.2%. Valero Energy’s payout ratio is presently 10.80%.

Valero Energy Company Profile

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.