Valero Energy Sees Unusually Large Options Volume (NYSE:VLO)

Valero Energy Corporation (NYSE:VLO) was the recipient of some unusual options trading on Monday. Stock traders acquired 23,642 put options on the stock. This is an increase of 179% compared to the average volume of 8,462 put options.

Insider Buying and Selling at Valero Energy

In other news, SVP Eric A. Fisher sold 7,500 shares of the firm’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $268.17, for a total value of $2,011,275.00. Following the transaction, the senior vice president directly owned 19,742 shares in the company, valued at $5,294,212.14. This trade represents a 27.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.36% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in VLO. Whipplewood Advisors LLC raised its position in shares of Valero Energy by 3,400.0% during the first quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company’s stock valued at $26,000 after buying an additional 102 shares during the last quarter. JPL Wealth Management LLC bought a new position in shares of Valero Energy during the third quarter worth $27,000. Financial Life Planners purchased a new position in Valero Energy during the first quarter valued at $28,000. Valued Wealth Advisors LLC grew its stake in Valero Energy by 134.0% during the first quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company’s stock valued at $29,000 after acquiring an additional 67 shares in the last quarter. Finally, Torren Management LLC bought a new stake in Valero Energy in the 4th quarter valued at $30,000. 78.69% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on VLO shares. The Goldman Sachs Group upped their price objective on Valero Energy from $286.00 to $357.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Raymond James Financial boosted their price target on Valero Energy from $300.00 to $340.00 and gave the company a “strong-buy” rating in a research note on Monday, July 13th. TD Cowen upped their price target on shares of Valero Energy from $338.00 to $350.00 and gave the company a “hold” rating in a research report on Monday, August 3rd. Morgan Stanley raised their price objective on shares of Valero Energy from $232.00 to $255.00 and gave the stock an “equal weight” rating in a report on Friday, June 12th. Finally, Zacks Research upgraded shares of Valero Energy from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 4th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Valero Energy currently has an average rating of “Moderate Buy” and a consensus price target of $288.00.

Valero Energy Price Performance

Shares of NYSE VLO traded up $5.31 during midday trading on Monday, reaching $346.98. The stock had a trading volume of 1,255,025 shares, compared to its average volume of 3,375,812. The company has a market capitalization of $99.91 billion, a price-to-earnings ratio of 14.40, a price-to-earnings-growth ratio of 0.23 and a beta of 0.55. Valero Energy has a 12-month low of $135.02 and a 12-month high of $350.63. The stock has a 50-day moving average of $283.92 and a 200-day moving average of $248.42. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.23 and a current ratio of 1.64.

Valero Energy (NYSE:VLO) last issued its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, topping the consensus estimate of $10.11 by $2.43. The company had revenue of $44.48 billion during the quarter, compared to the consensus estimate of $39.47 billion. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. Valero Energy’s quarterly revenue was up 48.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.28 EPS. As a group, research analysts anticipate that Valero Energy will post 40.62 EPS for the current fiscal year.

Valero Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be given a dividend of $1.20 per share. The ex-dividend date is Friday, July 31st. This represents a $4.80 annualized dividend and a dividend yield of 1.4%. Valero Energy’s dividend payout ratio (DPR) is currently 19.92%.

Valero Energy News Roundup

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Strong Buy recognition: VLO was added to Zacks’ Rank #1 (Strong Buy) list and was separately identified as both a leading value and growth stock. These designations may attract additional investor interest. New Strong Buy Stocks for August 17th Best Value Stocks to Buy for August 17th Best Growth Stocks to Buy for August 17th
• Positive Sentiment: Rising earnings estimates: Zacks reported that analysts are moving their earnings estimates higher for Valero, suggesting improving expectations for the refining company and supporting the possibility of further gains. Earnings Estimates Moving Higher for Valero Energy
• Positive Sentiment: Strong operating backdrop: Valero’s latest reported quarter substantially exceeded consensus expectations, with earnings per share of $12.54 versus an estimate of $10.11 and revenue growth of 48.8% year over year. This performance likely reinforces the bullish estimate revisions.
• Neutral Sentiment: Unusual options activity: Traders bought 23,642 put options, roughly 179% above typical volume. The activity may indicate increased hedging or bearish speculation, but it does not necessarily predict a decline in VLO shares.

About Valero Energy

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company’s operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.