Valero Energy (NYSE:VLO) Shares Gap Up on Better-Than-Expected Earnings

Valero Energy Co. (NYSE:VLO) gapped up before the market opened 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 trading hands.

The oil and gas company reported $0.64 EPS for the quarter, topping 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 business also recently disclosed a quarterly dividend, which will be paid on Monday, March 3rd. Investors of record on Thursday, January 30th will be issued a dividend of $1.13 per share. This represents a $4.52 dividend on an annualized basis and a dividend yield of 3.34%. This is a positive change from Valero Energy’s previous quarterly dividend of $1.07. The ex-dividend date is Thursday, January 30th. Valero Energy’s dividend payout ratio (DPR) is presently 38.39%.

Wall Street Analyst Weigh In

VLO has been the topic of a number of research analyst reports. Scotiabank dropped their price objective on shares of Valero Energy from $173.00 to $141.00 and set a “sector outperform” rating on the stock in a report on Thursday, October 10th. TD Cowen decreased 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 report on Friday, October 25th. Mizuho decreased their target price on shares of Valero Energy from $165.00 to $158.00 and set an “outperform” rating for the company in a research report on Wednesday, January 8th. Barclays decreased their target price on shares of Valero Energy from $146.00 to $140.00 and set an “overweight” rating for the company in a research report on Monday, November 11th. Finally, Wells Fargo & Company decreased their target price on shares of Valero Energy from $165.00 to $160.00 and set an “overweight” rating for the company in a research report on Monday, December 9th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $154.54.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in VLO. NewEdge Advisors LLC lifted its holdings in Valero Energy by 9.5% during the 2nd quarter. NewEdge Advisors LLC now owns 26,606 shares of the oil and gas company’s stock worth $4,171,000 after purchasing an additional 2,317 shares during the last quarter. Cetera Investment Advisers lifted its holdings in 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 worth $18,203,000 after purchasing an additional 5,295 shares during the last quarter. New Century Financial Group LLC acquired a new stake in Valero Energy during the 2nd quarter worth approximately $255,000. Clearbridge Investments LLC acquired a new stake in Valero Energy during the 2nd quarter worth approximately $763,000. Finally, Sanctuary Advisors LLC acquired a new stake in Valero Energy during the 2nd quarter worth approximately $20,826,000. 78.69% of the stock is currently owned by institutional investors.

Valero Energy Stock Performance

The firm has a market capitalization of $42.85 billion, a price-to-earnings ratio of 12.14, a PEG ratio of 2.81 and a beta of 1.42. The company has a fifty day moving average of $131.11 and a two-hundred day moving average of $137.72. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.11 and a current ratio of 1.57.

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.