Valero Energy (NYSE:VLO) Shares Gap Up Following Earnings Beat

Valero Energy Co. (NYSE:VLO) gapped up prior to trading on Thursday following a stronger than expected earnings report. 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.

The oil and gas company reported $0.64 earnings per share for the quarter, beating the consensus estimate 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 disclosed a quarterly dividend, which will be paid on Monday, March 3rd. Shareholders of record on Thursday, January 30th will be issued a $1.13 dividend. The ex-dividend date is Thursday, January 30th. This is a boost from Valero Energy’s previous quarterly dividend of $1.07. This represents a $4.52 annualized dividend and a yield of 3.34%. Valero Energy’s payout ratio is currently 38.39%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on VLO shares. BMO Capital Markets dropped 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. Barclays lowered their price target on Valero Energy from $146.00 to $140.00 and set an “overweight” rating for the company in a report on Monday, November 11th. Piper Sandler raised Valero Energy from a “hold” rating to a “strong-buy” rating in a report on Friday, January 10th. Mizuho lowered their price target on Valero Energy from $165.00 to $158.00 and set an “outperform” rating for the company in a report on Wednesday, January 8th. Finally, TD Cowen lowered their price target on Valero Energy from $145.00 to $140.00 and set a “buy” rating for the company in a report on Friday, October 25th. One analyst has rated the stock with a sell rating, three have issued a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $154.54.

Institutional Investors Weigh In On Valero Energy

Institutional investors have recently made changes to their positions in the stock. New Wave Wealth Advisors LLC bought a new stake in shares of Valero Energy in the 4th quarter valued at about $25,000. Peterson Financial Group Inc. bought a new stake in shares of Valero Energy in the 3rd quarter valued at about $28,000. Tobam bought a new stake in shares of Valero Energy in the 4th quarter valued at about $30,000. Compagnie Lombard Odier SCmA bought a new stake in shares of Valero Energy in the 3rd quarter valued at about $34,000. Finally, True Wealth Design LLC grew its position in shares of Valero Energy by 196.8% in the 3rd quarter. True Wealth Design LLC now owns 276 shares of the oil and gas company’s stock valued at $37,000 after buying an additional 183 shares during the last quarter. Institutional investors own 78.69% of the company’s stock.

Valero Energy Price Performance

The business has a 50-day simple moving average of $131.11 and a 200 day simple moving average of $137.72. The stock has a market cap of $42.85 billion, a P/E ratio of 12.14, 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.

About Valero Energy

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.