Wells Fargo Lowers Valero Energy Price Target to $159.00

Wells Fargo & Company recently modified its price target for Valero Energy (NYSE: VLO) from $160.00 to $159.00 in a report released on Friday. The brokerage maintains an "overweight" rating on the oil and gas company’s stock. This revised price target implies a potential growth of approximately 18.66% based on the stock's current market price.

Analyst Comments

In addition to Wells Fargo's adjustment, other analysts have also shared their evaluations of Valero Energy. For instance, Scotiabank decreased its price target from $173.00 to $141.00 on October 10, setting a "sector outperform" rating on the company's shares. Piper Sandler upgraded Valero Energy from a "hold" rating to a "strong buy" rating in a research note published on January 10. Similarly, Mizuho revised its price target downward from $165.00 to $158.00 while maintaining an "outperform" rating as of January 8. Barclays also adjusted their target price from $146.00 to $140.00, keeping an "overweight" rating on the stock. Finally, Bank of America initiated coverage on Valero Energy on October 17, assigning a "neutral" rating with a price target of $150.00. Overall, there is a mix of ratings: one analyst suggests a sell rating, three have a hold rating, ten have issued buy ratings, and one recommends a strong buy. According to MarketBeat.com, Valero Energy currently holds an average rating of "Moderate Buy" with an average price target of $154.46.

Valero Energy's Stock Performance

As of Friday, Valero Energy’s stock value decreased by 1.1%, closing at $134.00. The volume of shares traded reached 360,038, which is significantly lower than its average volume of 2,915,847 shares. Valero Energy's market capitalization stands at $42.42 billion. Its price-to-earnings (P/E) ratio is reported at 12.00, with a price-to-earnings-growth (PEG) ratio of 2.81 and a beta of 1.42. For liquidity, the company’s current ratio is 1.57, the quick ratio is 1.11, and the debt-to-equity ratio is low at 0.35. The stock has experienced a twelve-month low of $116.84 and a high of $184.79. Currently, its 50-day moving average is $130.99, and the 200-day moving average is $137.71.

Recent Earnings Report

Valero Energy last reported its earnings on January 30, where the company announced earnings of $0.64 per share for the quarter. This figure exceeded the consensus estimate of $0.14 per share by a significant margin of $0.50. Additionally, Valero Energy achieved a return on equity of 13.07% coupled with a net margin of 2.74%. Analysts project that for the current fiscal year, the company will achieve earnings of 7.92 per share.

Institutional Investor Activity

Recent movements among hedge funds regarding Valero Energy also indicate a strong interest in the stock. New Wave Wealth Advisors LLC made a new acquisition of Valero shares in the fourth quarter amounting to approximately $25,000. Other banks including Peterson Financial Group Inc., Tobam, Compagnie Lombard Odier SCmA, and True Wealth Design LLC have also increased their stakes or made new positions in the company, reinforcing a trend of institutional investment in Valero. Presently, institutional investors hold around 78.69% of the stock.

Company Overview

Valero Energy Corporation is engaged in manufacturing, marketing, and selling petroleum-based and low-carbon liquid transportation fuels and petrochemical products across the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and other international markets. The company operates within three primary segments: Refining, Renewable Diesel, and Ethanol.

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