Valero Energy Corporation [VLO] Stock trading around $83.85 per share: What’s Next?


Valero Energy Corporation [NYSE: VLO] gained 3.48% or 2.82 points to close at $83.85 with a heavy trading volume of 4173927 shares. The company report on December 29, 2021 that Valero Energy Completes Previously Announced Series of Debt Reduction and Refinancing Transactions.

Valero Energy Corporation (NYSE: VLO, “Valero”) announced today the completion of the previously announced debt reduction and refinancing transactions that together reduced Valero’s long-term debt by approximately $700 million. The debt reduction and refinancing transactions included the issuance of $500 million aggregate principal amount of 2.800% Senior Notes due 2031 and $950 million aggregate principal amount of 3.650% Senior Notes due 2051 (the “Notes Issuance”) and the use of the proceeds from the Notes Issuance and cash on hand to repurchase and retire approximately $2.1 billion aggregate principal amount of various series of Valero’s senior notes and to redeem all of Valero’s 2.700% Senior Notes due 2023.

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The debt reduction and refinancing transactions, combined with the redemption of the $575 million aggregate principal amount of Floating Rate Senior Notes due 2023 in the third quarter, collectively reduced Valero’s long-term debt by approximately $1.3 billion.

It opened the trading session at $81.80, the shares rose to $84.09 and dropped to $81.20, the range by which the price of stock traded the whole day. The daily chart for VLO points out that the company has recorded 23.91% gains over the past six months. However, it is still -52.9% lower than its most recent low trading price.

If we look at the average trading volume of 3.66M shares, VLO reached to a volume of 4173927 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Valero Energy Corporation [VLO]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VLO shares is $91.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VLO stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Valero Energy Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on September 07, 2021. While these analysts kept the previous recommendation, Citigroup dropped their target price from $95 to $121. The new note on the price target was released on May 03, 2021, representing the official price target for Valero Energy Corporation stock. Previously, the target price had yet another raise to $96, while Raymond James analysts kept a Strong Buy rating on VLO stock.

The Average True Range (ATR) for Valero Energy Corporation is set at 2.26, with the Price to Sales ratio for VLO stock in the period of the last 12 months amounting to 0.36. The Price to Book ratio for the last quarter was 1.95, with the Price to Cash per share for the same quarter was set at 8.65. Price to Free Cash Flow for VLO in the course of the last twelve months was 19.00 with Quick ratio for the last quarter at 0.90.

Trading performance analysis for VLO stock

Valero Energy Corporation [VLO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.80. With this latest performance, VLO shares gained by 18.35% in over the last four-week period, additionally plugging by 23.91% over the last 6 months – not to mention a rise of 40.90% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for VLO stock in for the last two-week period is set at 79.62, with the RSI for the last a single of trading hit 89.12, and the three-weeks RSI is set at 71.88 for Valero Energy Corporation [VLO]. The present Moving Average for the last 50 days of trading for this stock 73.59, while it was recorded at 80.85 for the last single week of trading, and 73.04 for the last 200 days.

Valero Energy Corporation [VLO]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Valero Energy Corporation [VLO] shares currently have an operating margin of -2.68 and a Gross Margin at -1.46. Valero Energy Corporation’s Net Margin is presently recorded at -2.20.

Return on Total Capital for VLO is now -5.04, given the latest momentum, and Return on Invested Capital for the company is -4.35. Return on Equity for this stock declined to -7.02, with Return on Assets sitting at -2.67. When it comes to the capital structure of this company, Valero Energy Corporation [VLO] has a Total Debt to Total Equity ratio set at 84.29. Additionally, VLO Total Debt to Total Capital is recorded at 45.74, with Total Debt to Total Assets ending up at 30.26. Long-Term Debt to Equity for the company is recorded at 78.93, with the Long-Term Debt to Total Capital now at 42.83.

Reflecting on the efficiency of the workforce at the company, Valero Energy Corporation [VLO] managed to generate an average of -$143,115 per employee. Receivables Turnover for the company is 8.64 with a Total Asset Turnover recorded at a value of 1.21.Valero Energy Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.30.

Valero Energy Corporation [VLO]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for VLO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Valero Energy Corporation go to -13.80%.

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An analysis of insider ownership at Valero Energy Corporation [VLO]

There are presently around $26,509 million, or 79.00% of VLO stock, in the hands of institutional investors. The top three institutional holders of VLO stocks are: VANGUARD GROUP INC with ownership of 46,324,721, which is approximately 0.463% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 36,013,086 shares of the stock with an approximate value of $3.02 billion in VLO stocks shares; and STATE STREET CORP, currently with $2.4 billion in VLO stock with ownership of nearly 0.92% of the company’s market capitalization.

Positions in Valero Energy Corporation stocks held by institutional investors increased at the end of January and at the time of the January reporting period, where 484 institutional holders increased their position in Valero Energy Corporation [NYSE:VLO] by around 16,397,590 shares. Additionally, 471 investors decreased positions by around 17,968,137 shares, while 146 investors held positions by with 281,776,704 shares. The mentioned changes placed institutional holdings at 316,142,431 shares, according to the latest SEC report filing. VLO stock had 82 new institutional investments in for a total of 2,739,900 shares, while 109 institutional investors sold positions of 2,861,048 shares during the same period.