Valero Energy (NYSE:VLO) Shares Gap Up After Better-Than-Expected Earnings

Valero Energy Co. (NYSE:VLO - Get Free Report)'s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $138.35, but opened at $143.89. Valero Energy shares last traded at $135.53, with a volume of 2,007,484 shares changing hands.

The oil and gas company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.50. Valero Energy had a net margin of 2.74% and a return on equity of 13.07%.

Valero Energy Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 3rd. Shareholders of record on Thursday, January 30th will be issued a $1.13 dividend. This is a positive change from Valero Energy's previous quarterly dividend of $1.07. This represents a $4.52 annualized dividend and a yield of 3.40%. The ex-dividend date of this dividend is Thursday, January 30th. Valero Energy's payout ratio is currently 38.39%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on VLO shares. Citigroup decreased their target price on shares of Valero Energy from $192.00 to $176.00 and set a "buy" rating for the company in a research report on Friday, October 25th. Piper Sandler upgraded Valero Energy from a "hold" rating to a "strong-buy" rating in a research report on Friday, January 10th. TD Cowen cut their target price on shares of Valero Energy from $145.00 to $140.00 and set a "buy" rating for the company in a report on Friday, October 25th. Bank of America began coverage on shares of Valero Energy in a report on Thursday, October 17th. They set a "neutral" rating and a $150.00 price target on the stock. Finally, Scotiabank decreased their price objective on shares of Valero Energy from $173.00 to $141.00 and set a "sector outperform" rating for the company in a research report on Thursday, October 10th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $154.46.

Institutional Investors Weigh In On Valero Energy

A number of institutional investors have recently made changes to their positions in the stock. Charles Schwab Investment Management Inc. increased its stake in Valero Energy by 0.5% during the third quarter. Charles Schwab Investment Management Inc. now owns 10,287,269 shares of the oil and gas company's stock worth $1,389,090,000 after purchasing an additional 50,837 shares during the period. Franklin Resources Inc. grew its holdings in shares of Valero Energy by 5.6% in the third quarter. Franklin Resources Inc. now owns 4,687,585 shares of the oil and gas company's stock valued at $639,268,000 after purchasing an additional 247,630 shares in the last quarter. Pacer Advisors Inc. increased its stake in Valero Energy by 13.6% during the 4th quarter. Pacer Advisors Inc. now owns 4,072,188 shares of the oil and gas company's stock worth $499,210,000 after buying an additional 487,022 shares during the period. Wellington Management Group LLP grew its stake in shares of Valero Energy by 4,908.0% in the third quarter. Wellington Management Group LLP now owns 2,850,526 shares of the oil and gas company's stock worth $384,907,000 after acquiring an additional 2,793,607 shares in the last quarter. Finally, Montrusco Bolton Investments Inc. increased its position in shares of Valero Energy by 6.3% during the third quarter. Montrusco Bolton Investments Inc. now owns 2,533,434 shares of the oil and gas company's stock worth $342,090,000 after acquiring an additional 151,200 shares during the period. 78.69% of the stock is currently owned by institutional investors and hedge funds.

Valero Energy Stock Performance

The firm has a market capitalization of $42.06 billion, a price-to-earnings ratio of 11.91, a PEG ratio of 2.81 and a beta of 1.42. The firm has a 50 day moving average price of $130.99 and a 200-day moving average price of $137.71. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.57 and a quick ratio of 1.11.

About Valero Energy

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol.