What Does The Market Really Think About Valero Energy Corporation (NYSE:VLO)?

In the recent trading session, Valero Energy Corporation (NYSE:VLO) shares lost -0.45% or -0.43 points to close at $96.46 with a thin trading volume of 1.054 million shares. It opened the trading session at $97.05, the shares rose to $98.03 and dropped to $96.08, the range by which the price of stock traded the whole session. The company now has a market cap of $39.9 billion and currently has 412 million outstanding shares. Valero Energy Corporation (VLO) stock has accumulated 2.45 percent of market value in 21 trading days.

VLO stock’s trailing 3-year beta is 1.53, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $5.47 share in the trailing 52 weeks. The stock’s value surged 3.46 percent year to date (YTD) compared to a rise of 25.15 percent in 52 week’s period. The firm’s shares are still trading -5.43 percent below its 1-year high of $101.99 and 38.9 percent up from 52-week low of $69.44. The average consensus ranking on the company is 1.9, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Valero Energy Corporation (VLO) is most likely going to rise 13 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $124 as 12-month high price target. This represents a whopping 28.55 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $109, which means a return possibility of 13 percent in comparison with the closing price of the stock of $96.46 in recent trading session. The lowest price set for the stock is $91 which is just above -5.66 percent from VLO share’s price at the end of session.

Past records have indicated that shares in Valero Energy Corporation rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of VLO’s Q4 earnings on January 30. Analysts are predicting revenue to suffer decline of -10.3 percent to $25.8B in the financial fourth quarter, while EPS will soar by about -18.87 percent to $1.72 per share. In the last quarter, it’s earnings of $0.34 per share came worse than the $1.73991, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $27.25B, topping the $25.93B analysts had expected. Earnings are seen to rise by 46.7 percent this year, 95.26 percent in the coming year and the trend continues by 3.96 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Valero Energy Corporation (NYSE:VLO) and observe the pattern. The earliest insider trade happened on 12/16/2019. Gorder Joseph W parted with a total of 21.4 thousand shares of the firm at average share price of $95.57. The total amount for the sale was set at $2.05 million. On completing this exchange, the COB, President and CEO account balance was 403.52 thousand shares. The stock grew 1 percent from that insider sale. On 02/20/2019, Waters Stephen M, Director, did a purchase of 0.5 thousand shares at a price of $84.97 per share. This increased 42.49 thousand shares to the insider’s fortune and the stock experienced a 13.6 percent rally in price since the news became public. This exchange saw 0.5 thousand shares get into the Director account.

On 12/11/2018, Director WEISENBURGER RANDALL J recorded a purchase transaction valued at $1.82 million. The purchase at $72.74 a share has added 25 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 32.71 percent increase since the transaction reporting date. The company insider is left with 53.72 thousand shares remaining in the account. EBERHART PAULETT, who works as Director at the company, performed a purchase of 0.06 thousand shares in a transaction worth $5.17 thousand. The acquisition recorded on 10/29/2018 was priced at $86.23 per share. The stock price soared 11.94 percent since the transaction. EBERHART PAULETT currently holds a stake of 4.22 thousand in VLO stock which is worth $407.35 thousand after the insider buying.

The stock is lingering around the initial support level of $95.69. After this, the following support is at the zone of $94.5. Up until the time the VLO stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 55.5 on the daily chart, and this may be a cause for concern. In case the price goes below $94.5 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $97.78 level may cause a pull-back move approaching $98.68 mark.

Valero Energy Corporation (VLO) shares are trading at a P/E ratio of 17.72 times earnings posted in the trailing 12 months. The industry VLO deals with has an average P/E of 16.6. Its P/B ratio is standing at 1.85X compared to the 2.35 industry average. It is additionally sporting a 0.32 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.08. Valero Energy Corporation has a 8.4% gross profit margin, with its operating margin around 3.1%. Alongside this, the company’s net profit margin currently stands at 2.1%.