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

Valero Energy Co. (NYSE:VLO)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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 changing hands.

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

Valero Energy Increases Dividend

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

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. TD Cowen lowered their target price on shares of Valero Energy from $145.00 to $140.00 and set a “buy” rating for the company in a research note on Friday, October 25th. Citigroup decreased their price target on shares of Valero Energy from $192.00 to $176.00 and set a “buy” rating for the company in a research note on Friday, October 25th. Scotiabank decreased their price target on shares of 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. BMO Capital Markets decreased their price target on shares of Valero Energy from $175.00 to $165.00 and set an “outperform” rating for the company in a research note on Friday, October 4th. Finally, Barclays decreased their price target on shares of Valero Energy from $146.00 to $140.00 and set an “overweight” rating for the company in a research note on Monday, November 11th. One research analyst has rated the stock with a sell rating, three have given a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $154.46.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of VLO. Cetera Investment Advisers raised its position in shares of Valero Energy by 4.8% during the 2nd quarter. Cetera Investment Advisers now owns 116,120 shares of the oil and gas company’s stock valued at $18,203,000 after buying an additional 5,295 shares in the last quarter. Clearbridge Investments LLC bought a new position in shares of Valero Energy during the 2nd quarter valued at $763,000. Healthcare of Ontario Pension Plan Trust Fund grew its holdings in shares of Valero Energy by 269.8% during the 2nd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 63,095 shares of the oil and gas company’s stock valued at $9,891,000 after purchasing an additional 46,033 shares during the last quarter. Anchor Investment Management LLC grew its holdings in shares of Valero Energy by 508.3% during the 2nd quarter. Anchor Investment Management LLC now owns 10,450 shares of the oil and gas company’s stock valued at $1,638,000 after purchasing an additional 8,732 shares during the last quarter. Finally, Mattson Financial Services LLC bought a new stake in Valero Energy in the 2nd quarter worth $76,000. 78.69% of the stock is owned by institutional investors.

Valero Energy Stock Performance

The firm has a market cap of $42.06 billion, a P/E ratio of 11.91, a price-to-earnings-growth ratio of 2.81 and a beta of 1.42. The company has a current ratio of 1.57, a quick ratio of 1.11 and a debt-to-equity ratio of 0.35. The business’s fifty day simple moving average is $130.99 and its 200-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.