Valero Energy Corporation (NYSE:VLO – Get Free Report) shares crossed above its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $397.64 and traded as high as $400.60. Valero Energy shares last traded at $400.04, with a volume of 4,224,597 shares trading hands.
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
Wall Street Analysts Forecast Growth
VLO has been the subject of several research analyst reports. Citigroup boosted their target price on Valero Energy from $485.00 to $490.00 and gave the stock a “neutral” rating in a research note on Friday, October 23rd. Zacks Research raised shares of Valero Energy from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 4th. Barclays upped their price objective on shares of Valero Energy from $441.00 to $443.00 and gave the stock an “overweight” rating in a research report on Friday, October 23rd. Morgan Stanley upped their price objective on shares of Valero Energy from $255.00 to $411.00 and gave the stock an “equal weight” rating in a research report on Monday, September 14th. Finally, Wells Fargo & Company increased their price objective on shares of Valero Energy from $485.00 to $489.00 and gave the company an “overweight” rating in a research note on Friday, October 23rd. Three equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $379.94.
View Our Latest Research Report on Valero Energy
Valero Energy Price Performance
The firm has a market cap of $115.18 billion, a P/E ratio of 9.00, a price-to-earnings-growth 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 business has a 50-day moving average of $397.64 and a two-hundred day moving average of $285.06.
Valero Energy (NYSE:VLO – Get Free Report) last issued 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 business had revenue of $46.10 billion during the quarter, compared to analysts’ expectations of $42.71 billion. Valero Energy had a return on equity of 45.90% and a net margin of 8.44%. The business’s revenue for the quarter was up 43.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.66 EPS. On average, sell-side analysts anticipate that Valero Energy Corporation will post 57.42 earnings per share 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. Stockholders of record on Tuesday, November 24th will be issued a dividend of $1.20 per share. This represents a $4.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Tuesday, November 24th. Valero Energy’s payout ratio is 10.80%.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently made changes to their positions in the company. Moore Capital Management LP acquired a new position in Valero Energy in the 2nd quarter valued at approximately $13,193,000. QRG Capital Management Inc. raised its stake in shares of Valero Energy by 5.5% during the second quarter. QRG Capital Management Inc. now owns 58,558 shares of the oil and gas company’s stock valued at $15,251,000 after acquiring an additional 3,037 shares during the last quarter. Jennison Associates LLC lifted its holdings in shares of Valero Energy by 377.1% during the first quarter. Jennison Associates LLC now owns 413,437 shares of the oil and gas company’s stock worth $102,152,000 after purchasing an additional 326,777 shares during the period. Journey Advisory Group LLC lifted its holdings in shares of Valero Energy by 23.3% during the first quarter. Journey Advisory Group LLC now owns 21,676 shares of the oil and gas company’s stock worth $5,356,000 after purchasing an additional 4,098 shares during the period. Finally, National Pension Service grew its stake in shares of Valero Energy by 1.0% in the second quarter. National Pension Service now owns 549,675 shares of the oil and gas company’s stock worth $143,157,000 after purchasing an additional 5,609 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.
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.
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