WealthTrust Axiom LLC has reduced its position in Valero Energy Corporation (NYSE: VLO) by 8.7% during the second quarter of 2023, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). Following this divestment, the institutional investor now holds 3,172 shares of the oil and gas company, down from 3,474 shares after selling 302 shares in the quarter. The current value of WealthTrust Axiom’s holdings stands at approximately $426,000.
Various other institutional investors have also adjusted their positions in Valero Energy. Notably, Hoey Investments Inc. acquired a new stake valued at around $26,000, while GFG Capital LLC invested approximately $27,000 during the same period. Additionally, Hantz Financial Services Inc. significantly increased its holdings by 1,277.8%, bringing its total to 248 shares, valued at $33,000 after purchasing an additional 230 shares. Hemington Wealth Management also raised its stake by 39.9%, now owning 333 shares worth $43,000.
Analysts have been actively commenting on Valero Energy shares, reflecting a mix of opinions. On October 24, 2023, UBS Group reiterated a “buy” rating with a price target of $183.00. Conversely, Morgan Stanley downgraded the stock from “overweight” to “equal weight,” adjusting their target price from $160.00 to $175.00. Other analysts, including Mizuho and Weiss Ratings, have offered varying ratings, with Mizuho setting a target of $190.00 and Weiss maintaining a “hold” rating. Overall, the consensus among analysts suggests a “Moderate Buy” rating and an average price target of $182.00.
Valero Energy’s stock showed a slight increase of 0.3% on the trading day, opening at $174.59. The company has experienced a 1-year low of $99.00 and a 1-year high of $185.62. Key financial indicators include a market capitalization of $53.25 billion, a P/E ratio of 36.45, and a debt-to-equity ratio of 0.36.
In its latest earnings report, released on October 23, 2023, Valero Energy reported earnings per share (EPS) of $3.66, surpassing analysts’ expectations of $3.15 by $0.51. The company recorded revenues of $32.17 billion, exceeding the forecast of $28.80 billion. Despite these positive results, Valero’s revenue showed a 2.2% decline year-over-year, with a net margin of 1.21% and a return on equity of 8.69%.
In a related development, Valero Energy has announced a quarterly dividend of $1.13 per share, payable on December 18, 2023. Investors on record as of November 20, 2023 will receive this dividend, which translates to an annualized yield of 2.6%. The firm’s dividend payout ratio currently stands at 94.36%.
On the insider trading front, Chief Financial Officer Jason W. Fraser sold 9,933 shares of Valero’s stock on November 21, 2023, at an average price of $174.02, resulting in a transaction valued at approximately $1.73 million. Following the sale, Fraser retains 134,196 shares in the company, valued at around $23.35 million, marking a 6.89% reduction in his ownership stake.
Valero Energy Corporation operates across the United States and several international markets, including Canada, the United Kingdom, and parts of Latin America. It manufactures and markets petroleum-based and low-carbon liquid transportation fuels and petrochemical products, structured through three main segments: Refining, Renewable Diesel, and Ethanol. The company continues to be a significant player in the global energy sector.
