Valero Energy Corporation [VLO] Stock trading around $133.62 per share: What’s Next?


Valero Energy Corporation [NYSE: VLO] gained 0.81% or 1.07 points to close at $133.62 with a heavy trading volume of 4469137 shares. The company report on June 1, 2022 that Valero Energy Continues to Reduce Debt Through Mandatory Tender of $300 Million of GO Zone Bonds.

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Valero Energy Corporation (NYSE: VLO, “Valero”) reduced its debt by approximately $300 million through the acquisition of $300 million of 4.00 percent Gulf Opportunity Zone Revenue Bonds Series 2010 (“GO Zone Bonds”). As previously disclosed, the GO Zone Bonds are due December 1, 2040, but were subject to mandatory tender on June 1, 2022 (the “Mandatory Tender Date”) at a price equal to par plus accrued and unpaid interest up to, but excluding, the Mandatory Tender Date.

This transaction, combined with debt reduction and refinancing transactions completed in the third and fourth quarters of 2021, and the first quarter of 2022, collectively reduced Valero’s debt by approximately $2.3 billion.

It opened the trading session at $131.63, the shares rose to $135.39 and dropped to $131.25, the range by which the price of stock traded the whole day. The daily chart for VLO points out that the company has recorded 98.51% gains over the past six months. However, it is still -127.05% lower than its most recent low trading price.

If we look at the average trading volume of 4.96M shares, VLO reached to a volume of 4469137 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 $125.37 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 1.80. 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.

Redburn have made an estimate for Valero Energy Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on June 01, 2022. While these analysts kept the previous recommendation, Morgan Stanley raised their target price to Overweight. The new note on the price target was released on September 07, 2021, representing the official price target for Valero Energy Corporation stock. Previously, the target price had yet another raise from $95 to $121, while Citigroup kept a Buy rating on VLO stock.

The Average True Range (ATR) for Valero Energy Corporation is set at 5.42, with the Price to Sales ratio for VLO stock in the period of the last 12 months amounting to 0.40. The Price to Book ratio for the last quarter was 2.90, with the Price to Cash per share for the same quarter was set at 6.65. Price to Free Cash Flow for VLO in the course of the last twelve months was 11.04 with Quick ratio for the last quarter at 0.80.

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 4.93. With this latest performance, VLO shares gained by 10.07% in over the last four-week period, additionally plugging by 98.51% over the last 6 months – not to mention a rise of 60.37% 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 67.88, with the RSI for the last a single of trading hit 70.55, and the three-weeks RSI is set at 66.63 for Valero Energy Corporation [VLO]. The present Moving Average for the last 50 days of trading for this stock 113.40, while it was recorded at 131.14 for the last single week of trading, and 85.80 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 +2.00 and a Gross Margin at +2.83. Valero Energy Corporation’s Net Margin is presently recorded at +0.81.

Return on Equity for this stock inclined to 4.96, with Return on Assets sitting at 1.67.

Valero Energy Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.20.

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 23.00%.

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

There are presently around $42,656 million, or 80.50% of VLO stock, in the hands of institutional investors. The top three institutional holders of VLO stocks are: VANGUARD GROUP INC with ownership of 47,955,666, which is approximately 3.229% of the company’s market cap and around 0.40% of the total institutional ownership; BLACKROCK INC., holding 39,071,890 shares of the stock with an approximate value of $5.18 billion in VLO stocks shares; and STATE STREET CORP, currently with $3.8 billion in VLO stock with ownership of nearly 0.865% of the company’s market capitalization.

Positions in Valero Energy Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 638 institutional holders increased their position in Valero Energy Corporation [NYSE:VLO] by around 28,792,746 shares. Additionally, 466 investors decreased positions by around 25,954,034 shares, while 154 investors held positions by with 267,066,892 shares. The mentioned changes placed institutional holdings at 321,813,672 shares, according to the latest SEC report filing. VLO stock had 197 new institutional investments in for a total of 3,488,973 shares, while 81 institutional investors sold positions of 3,734,830 shares during the same period.