Valero Energy (NYSE:VLO) Shares Down 9.4% – Here’s Why

Shares of Valero Energy Corporation (NYSE:VLO) were down 9.4% on Tuesday. The company traded as low as $385.65 and last traded at $386.7750. Approximately 5,065,837 shares changed hands during mid-day trading, an increase of 54% from the average daily volume of 3,295,015 shares. The stock had previously closed at $426.76.

Valero Energy News Roundup

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

• Positive Sentiment: Strong analyst and momentum signals: Zacks added VLO to its Rank #1 (Strong Buy) growth-stock list and identified it as a momentum pick, citing earnings surprises and favorable growth projections. Best Growth Stocks to Buy for October 29th
• Positive Sentiment: Dividend maintained: Valero declared its regular quarterly dividend of $1.20 per share, payable December 21 to shareholders of record November 24. The annualized payout is $4.80 per share, supporting the stock’s income appeal. Valero Energy Corporation Declares Regular Cash Dividend
• Positive Sentiment: Record profitability provides fundamental support: Valero recently reported its most profitable quarter, with earnings and revenue exceeding analyst expectations. However, investors appear more concerned about whether refining conditions can remain this strong.
• Neutral Sentiment: Investor attention is elevated: VLO is trending among Zacks users, which may increase near-term trading activity but does not by itself change the company’s fundamentals. Is Trending Stock Valero Energy Corporation a Buy Now?
• Negative Sentiment: Refining-margin concerns drove a sector-wide selloff: Valero, Marathon Petroleum, Phillips 66 and HF Sinclair all fell as crude prices retreated and signs of improving supply raised concerns that fuel prices and refinery margins could weaken. Refiners Slide Together
• Negative Sentiment: Potentially higher diesel supply is another overhang: The U.S. energy secretary indicated that more Russian diesel could enter the American market, raising fears of additional supply pressure on diesel prices and refining profitability. More Russian Diesel Is Coming to America
• Negative Sentiment: Valuation expectations were reduced: Evercore ISI cut its Valero price target to $325 from $385, reinforcing concerns that peak refining earnings may not persist. Evercore ISI Adjusts Price Target

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Piper Sandler boosted their price objective on shares of Valero Energy from $329.00 to $435.00 and gave the stock an “overweight” rating in a report on Thursday, September 3rd. The Goldman Sachs Group upped their price objective on shares of Valero Energy from $365.00 to $457.00 and gave the company a “buy” rating in a research note on Wednesday, September 23rd. UBS Group reissued a “buy” rating and issued a $467.00 target price on shares of Valero Energy in a research report on Tuesday, October 6th. TD Cowen upped their target price on shares of Valero Energy from $375.00 to $400.00 and gave the company a “hold” rating in a research note on Thursday, October 22nd. Finally, Mizuho lifted their price target on shares of Valero Energy from $300.00 to $434.00 and gave the company a “neutral” rating in a report on Thursday, October 8th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $379.94.

Valero Energy Trading Down 2.2%

The business’s 50-day moving average is $395.69 and its 200 day moving average is $282.96. The firm has a market capitalization of $109.38 billion, a P/E ratio of 8.55, a price-to-earnings-growth ratio of 0.24 and a beta of 0.59. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23.

Valero Energy (NYSE:VLO) last released its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share for the quarter, beating the consensus estimate of $21.17 by $2.73. Valero Energy had a return on equity of 47.50% and a net margin of 8.44%. The business had revenue of $46.10 billion for the quarter, compared to analyst estimates of $42.71 billion. During the same period last year, the firm posted $3.66 earnings per share. Valero Energy’s revenue was up 43.3% compared to the same quarter last year. As a group, analysts anticipate that Valero Energy Corporation will post 56.78 EPS for the current fiscal year.

Valero Energy Announces Dividend

The company also recently declared 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. The ex-dividend date is Tuesday, November 24th. This represents a $4.80 annualized dividend and a yield of 1.3%. Valero Energy’s dividend payout ratio is presently 10.80%.

Institutional Investors Weigh In On Valero Energy

A number of institutional investors have recently added to or reduced their stakes in the company. Bank Julius Baer & Co. Ltd Zurich raised its holdings in Valero Energy by 12.5% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 3,396 shares of the oil and gas company’s stock valued at $1,317,000 after acquiring an additional 376 shares in the last quarter. Virtue Capital Management LLC boosted its holdings in shares of Valero Energy by 14.8% in the 3rd quarter. Virtue Capital Management LLC now owns 1,058 shares of the oil and gas company’s stock valued at $410,000 after buying an additional 136 shares in the last quarter. Nippon Life Global Investors Americas Inc. acquired a new position in shares of Valero Energy in the 3rd quarter valued at $919,000. Bell Investment Advisors Inc raised its stake in shares of Valero Energy by 190.7% during the third quarter. Bell Investment Advisors Inc now owns 375 shares of the oil and gas company’s stock worth $145,000 after purchasing an additional 246 shares during the last quarter. Finally, Verus Financial Partners Inc. acquired a new position in Valero Energy during the 3rd quarter worth approximately $215,000. 78.69% of the stock is owned by institutional investors.

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.