Valero Energy (NYSE:VLO) Shares Gap Up on Strong Earnings

Valero Energy Co. (NYSE:VLO)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $138.35, but opened at $143.89. Valero Energy shares last traded at $135.53, with a volume of 2,007,484 shares traded.

The oil and gas company reported $0.64 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.50. Valero Energy had a return on equity of 13.07% and a net margin of 2.74%.

Valero Energy Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 3rd. Stockholders of record on Thursday, January 30th will be given a dividend of $1.13 per share. This represents a $4.52 dividend on an annualized basis and a dividend yield of 3.40%. This is a boost from Valero Energy’s previous quarterly dividend of $1.07. The ex-dividend date is Thursday, January 30th. Valero Energy’s dividend payout ratio is presently 38.39%.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on VLO. Scotiabank decreased their price target on Valero Energy from $173.00 to $141.00 and set a “sector outperform” rating for the company in a research note on Thursday, October 10th. Barclays decreased their target price on Valero Energy from $146.00 to $140.00 and set an “overweight” rating for the company in a research report on Monday, November 11th. Citigroup cut their price objective on Valero Energy from $192.00 to $176.00 and set a “buy” rating for the company in a report on Friday, October 25th. Wells Fargo & Company cut their price objective on Valero Energy from $160.00 to $159.00 and set an “overweight” rating for the company in a report on Friday. Finally, BMO Capital Markets cut their price objective on Valero Energy from $175.00 to $165.00 and set an “outperform” rating for the company in a report on Friday, October 4th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $154.46.

Hedge Funds Weigh In On Valero Energy

Several institutional investors and hedge funds have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC boosted its stake in Valero Energy by 1.8% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,293,589 shares of the oil and gas company’s stock worth $174,673,000 after purchasing an additional 22,571 shares during the period. Kieckhefer Group LLC acquired a new position in shares of Valero Energy during the 4th quarter worth about $1,226,000. Hudson Capital Management LLC raised its holdings in shares of Valero Energy by 6.5% in the 4th quarter. Hudson Capital Management LLC now owns 31,792 shares of the oil and gas company’s stock valued at $3,897,000 after purchasing an additional 1,937 shares during the period. Miracle Mile Advisors LLC bought a new stake in shares of Valero Energy in the 4th quarter valued at about $274,000. Finally, Captrust Financial Advisors raised its holdings in shares of Valero Energy by 7.5% in the 3rd quarter. Captrust Financial Advisors now owns 89,762 shares of the oil and gas company’s stock valued at $12,121,000 after purchasing an additional 6,278 shares during the period. Institutional investors and hedge funds own 78.69% of the company’s stock.

Valero Energy Stock Performance

The stock has a market capitalization of $42.06 billion, a P/E ratio of 11.91, a PEG ratio of 2.81 and a beta of 1.42. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.11 and a current ratio of 1.57. The company’s fifty day simple moving average is $130.99 and its two-hundred day simple moving average is $137.71.

Valero Energy Company Profile

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol.