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

Valero Energy Corporation (NYSE:VLO) saw some unusual options trading on Tuesday. Stock traders purchased 13,172 call options on the company. This is an increase of 57% compared to the average daily volume of 8,412 call options.

Valero Energy Stock Performance

VLO stock traded up $1.04 during trading hours on Tuesday, hitting $296.83. 1,050,256 shares of the stock were exchanged, compared to its average volume of 3,475,066. Valero Energy has a 12 month low of $130.78 and a 12 month high of $300.10. 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 firm has a market capitalization of $88.14 billion, a P/E ratio of 21.58, a P/E/G ratio of 0.35 and a beta of 0.55. The company has a 50-day simple moving average of $254.22 and a two-hundred day simple moving average of $225.92.

Valero Energy (NYSE:VLO) last released its quarterly earnings results on Thursday, April 30th. The oil and gas company reported $4.22 EPS for the quarter, beating the consensus estimate of $3.16 by $1.06. The business had revenue of $32.38 billion for the quarter, compared to the consensus estimate of $31.38 billion. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. Valero Energy’s revenue was up 7.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.89 earnings per share. On average, analysts forecast that Valero Energy will post 31.04 earnings per share for the current fiscal year.

Valero Energy Dividend Announcement

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

Analysts Set New Price Targets

Several research firms have commented on VLO. Morgan Stanley upped their price objective on shares of Valero Energy from $232.00 to $255.00 and gave the company an “equal weight” rating in a report on Friday, June 12th. Piper Sandler lifted their target price on shares of Valero Energy from $236.00 to $263.00 and gave the stock an “overweight” rating in a report on Wednesday, April 8th. Wall Street Zen upgraded shares of Valero Energy from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 4th. UBS Group reissued a “buy” rating and issued a $280.00 price target on shares of Valero Energy in a report on Thursday, June 11th. Finally, Weiss Ratings downgraded shares of Valero Energy from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given 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 stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $253.06.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Raymond James raised its price target on Valero Energy to $340 from $300 and reiterated a strong-buy view, signaling continued confidence in the stock’s upside. Raymond James price target update
• Positive Sentiment: Citigroup lifted its price target to $302 from $259, keeping a neutral rating but acknowledging somewhat higher valuation potential. Citigroup price target update
• Positive Sentiment: Unusually heavy call-option buying suggests traders are positioning for more upside in VLO, which can reflect bullish near-term sentiment.
• Positive Sentiment: Renewed Middle East tensions are tightening refined product markets and pushing refining margins higher, a potential tailwind for Valero’s earnings. Zacks article on Middle East tensions and energy stocks
• Neutral Sentiment: Broader market weakness tied to geopolitical headlines may create some volatility, but the main stock-specific driver appears to be improving refining economics rather than general market moves. Market selloff article

Insider Activity

In other news, SVP Eric A. Fisher sold 7,500 shares of Valero Energy stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the completion of the transaction, the senior vice president directly owned 19,742 shares in the company, valued at approximately $5,294,212.14. The trade was a 27.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.36% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Valero Energy

A number of large investors have recently modified their holdings of VLO. Ballast Inc. grew its holdings in shares of Valero Energy by 7.4% during the 2nd quarter. Ballast Inc. now owns 6,217 shares of the oil and gas company’s stock valued at $1,619,000 after purchasing an additional 430 shares during the last quarter. Regent Peak Wealth Advisors LLC bought a new position in Valero Energy during the 2nd quarter worth approximately $205,000. Heck Capital Advisors LLC bought a new position in Valero Energy during the second quarter worth $286,000. Tema ETFs LLC raised its position in shares of Valero Energy by 10.2% in the 2nd quarter. Tema ETFs LLC now owns 6,270 shares of the oil and gas company’s stock worth $1,633,000 after acquiring an additional 580 shares in the last quarter. Finally, HRC Wealth Management LLC acquired a new position in Valero Energy in the second quarter valued at approximately $208,000. Institutional investors and hedge funds own 78.69% of the company’s stock.

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.