Valero Energy (NYSE:VLO) Stock Falls 1.7% – Here’s Why

Valero Energy Corporation (NYSE:VLO)’s stock price traded down 1.7% during mid-day trading on Friday. The company traded as low as $416.56 and last traded at $419.1860. 2,377,074 shares changed hands during trading, a decline of 28% from the average daily volume of 3,294,004 shares. The stock had previously closed at $426.28.

Key Valero Energy News

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

• Positive Sentiment: Exceptional Q3 earnings: Valero reported adjusted EPS of $23.90, well above the roughly $21.17 consensus, while revenue increased 43.3% year over year to $46.1 billion. Net income surged to $6.8 billion from $1.1 billion, driven primarily by sharply higher refining margins. Valero Energy Reports Third Quarter 2026 Results
• Positive Sentiment: Favorable operating outlook: Management highlighted tight fuel markets, resilient demand, record ethanol production, improving renewable diesel and ethanol profitability, and expectations that fuel margins could rise again. The company also cited $9.8 billion in cash and disciplined capital spending, supporting financial flexibility. Valero Q3 Earnings Call Highlights Refining and Cash Strength
• Positive Sentiment: Several analysts remain constructive: Barclays raised its price target to $443 and retained an overweight rating, while Wells Fargo lifted its target to $489 and also maintained an overweight rating. Citigroup increased its target to $490, although it kept a neutral rating.
• Neutral Sentiment: Refining-sector momentum is strong but cyclical: Coverage emphasizes that Valero and other refiners are benefiting from tight fuel inventories and unusually high margins. Those conditions support near-term earnings but may be vulnerable to changes in crude prices, fuel demand, supply, or refinery utilization. Valero kicks off refiner results with record quarterly profit on higher margins
• Negative Sentiment: Valuation and analyst disagreement are weighing on sentiment: Freedom Broker reaffirmed a sell rating and assigned a $276 price target, implying substantial downside from the referenced trading level. TD Cowen raised its target to $400 but maintained a hold rating, underscoring concerns that much of the refining upside may already be reflected in VLO’s valuation.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the stock. Zacks Research raised shares of Valero Energy from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 4th. The Goldman Sachs Group increased their price objective on Valero Energy from $365.00 to $457.00 and gave the stock a “buy” rating in a report on Wednesday, September 23rd. Morgan Stanley lifted their price objective on Valero Energy from $255.00 to $411.00 and gave the company an “equal weight” rating in a research report on Monday, September 14th. UBS Group restated a “buy” rating and issued a $467.00 target price on shares of Valero Energy in a research note on Tuesday, October 6th. Finally, Freedom Broker reaffirmed a “sell” rating and issued a $276.00 target price on shares of Valero Energy in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Valero Energy presently has a consensus rating of “Moderate Buy” and a consensus target price of $379.94.

Valero Energy Stock Down 1.7%

The business’s 50 day moving average is $393.03 and its 200-day moving average is $310.15. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.23 and a current ratio of 1.64. The firm has a market capitalization of $120.69 billion, a price-to-earnings ratio of 9.43, a price-to-earnings-growth ratio of 0.25 and a beta of 0.59.

Valero Energy (NYSE:VLO) last posted its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share for the quarter, topping the consensus estimate of $21.17 by $2.73. Valero Energy had a return on equity of 47.50% and a net margin of 8.44%. The business had revenue of $46.10 billion during the quarter, compared to analysts’ expectations of $42.71 billion. During the same quarter in the previous year, the firm earned $3.66 EPS. The firm’s revenue was up 43.3% compared to the same quarter last year. Equities analysts anticipate that Valero Energy Corporation will post 54.22 EPS for the current fiscal year.

Institutional Trading of Valero Energy

Institutional investors have recently made changes to their positions in the business. Apollon Wealth Management LLC boosted its stake in shares of Valero Energy by 2.9% in the 3rd quarter. Apollon Wealth Management LLC now owns 12,237 shares of the oil and gas company’s stock valued at $4,743,000 after purchasing an additional 347 shares in the last quarter. First Interstate Bank acquired a new stake in shares of Valero Energy during the 3rd quarter worth about $223,000. Sigma Planning Corp increased its position in shares of Valero Energy by 0.4% during the 3rd quarter. Sigma Planning Corp now owns 7,171 shares of the oil and gas company’s stock worth $2,779,000 after purchasing an additional 29 shares in the last quarter. Straight Path Wealth Management acquired a new stake in shares of Valero Energy during the 3rd quarter worth about $300,000. Finally, Valley National Advisers Inc. lifted its holdings in Valero Energy by 27.8% during the 3rd quarter. Valley National Advisers Inc. now owns 267 shares of the oil and gas company’s stock valued at $103,000 after purchasing an additional 58 shares during the last quarter. 78.69% of the stock is currently owned by institutional investors and hedge funds.

About Valero Energy

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company’s primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.