Valero Energy Corporation (VLO) – What Are Researchers Saying About This Stock?

Shares of Valero Energy Corporation (NYSE:VLO) have received an average recommendation of “Moderate Buy” from the twenty-one research firms that are covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, eight have assigned a buy rating and three have given a strong buy rating to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $379.94.

Several research analysts have issued reports on VLO shares. Bank of America upped their price objective on Valero Energy from $395.00 to $414.00 and gave the stock a “neutral” rating in a report on Friday, October 2nd. Erste Group Bank downgraded Valero Energy from a “buy” rating to a “hold” rating in a research report on Thursday, August 27th. Mizuho upped their price target on Valero Energy from $300.00 to $434.00 and gave the company a “neutral” rating in a research note on Thursday, October 8th. Jefferies Financial Group dropped their price objective on Valero Energy from $401.00 to $394.00 and set a “hold” rating for the company in a report on Thursday, October 8th. Finally, UBS Group reaffirmed a “buy” rating and issued a $467.00 target price on shares of Valero Energy in a research note on Tuesday, October 6th.

Valero Energy Trading Up 4.0%

VLO opened at $400.04 on Monday. Valero Energy has a 1-year low of $159.90 and a 1-year high of $461.52. The stock has a market capitalization of $115.18 billion, a PE ratio of 9.00, a PEG 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 firm has a 50-day moving average price of $397.64 and a two-hundred day moving average price of $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 (EPS) for the quarter, topping analysts’ consensus estimates 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 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 period in the prior year, the business earned $3.66 earnings per share. As a group, equities analysts anticipate that Valero Energy will post 57.42 earnings per share for the current fiscal year.

Valero Energy Announces Dividend

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

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Bank of America Corp DE grew its holdings 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 worth $1,243,630,000 after buying an additional 516,975 shares in the last quarter. Bank of New York Mellon Corp raised its position in 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 buying an additional 254,604 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in Valero Energy by 18.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,842,339 shares of the oil and gas company’s stock valued at $702,285,000 after acquiring an additional 442,177 shares in the last quarter. Amundi boosted its position in Valero Energy by 45.3% during the 1st quarter. Amundi now owns 2,584,976 shares of the oil and gas company’s stock worth $638,695,000 after acquiring an additional 806,018 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in 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 worth $536,074,000 after acquiring an additional 520,642 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.

Valero Energy News Summary

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

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.