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Valero Energy Corporation (VLO) Stock: Assessing the Risk and Reward

The stock of Valero Energy Corporation (VLO) has seen a 1.14% increase in the past week, with a 9.73% gain in the past month, and a 26.00% flourish in the past quarter. The volatility ratio for the week is 2.25%, and the volatility levels for the past 30 days are at 2.55% for VLO. The simple moving average for the last 20 days is 6.26% for VLO stock, with a simple moving average of 14.18% for the last 200 days.

Is It Worth Investing in Valero Energy Corporation (NYSE: VLO) Right Now?

The price-to-earnings ratio for Valero Energy Corporation (NYSE: VLO) is 4.95x, which is above its average ratio. Moreover, the 36-month beta value for VLO is 1.64. Analysts have varying opinions on the stock, with 13 analysts rating it as a “buy,” 2 as “overweight,” 5 as “hold,” and 1 as “sell.”

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The average price recommended by analysts for Valero Energy Corporation (VLO) is $148.77, which is $6.19 above the current market price. The public float for VLO is 351.10M and currently, short sellers hold a 2.81% of that float. On September 18, 2023, VLO’s average trading volume was 3.65M shares.

VLO) stock’s latest price update

Valero Energy Corporation (NYSE: VLO)’s stock price has decreased by -1.56 compared to its previous closing price of 145.95. However, the company has seen a 1.14% increase in its stock price over the last five trading sessions. InvestorPlace reported 2023-09-16 that Oil stocks are surging. To put it simply, the energy sector is back.

Analysts’ Opinion of VLO

Many brokerage firms have already submitted their reports for VLO stocks, with BofA Securities repeating the rating for VLO by listing it as a “Neutral.” The predicted price for VLO in the upcoming period, according to BofA Securities is $152 based on the research report published on August 15, 2023 of the current year 2023.

VLO Trading at 11.71% from the 50-Day Moving Average

After a stumble in the market that brought VLO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.46% of loss for the given period.

Volatility was left at 2.55%, however, over the last 30 days, the volatility rate increased by 2.25%, as shares surge +8.83% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +26.63% upper at present.

During the last 5 trading sessions, VLO rose by +1.14%, which changed the moving average for the period of 200-days by +6.56% in comparison to the 20-day moving average, which settled at $135.80. In addition, Valero Energy Corporation saw 13.26% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at VLO starting from Gorder Joseph W, who sale 75,580 shares at the price of $135.99 back on Aug 14. After this action, Gorder Joseph W now owns 621,872 shares of Valero Energy Corporation, valued at $10,278,389 using the latest closing price.

Simmons Gary K., the EVP & CCO of Valero Energy Corporation, sale 1,750 shares at $135.16 during a trade that took place back on Nov 16, which means that Simmons Gary K. is holding 165,299 shares at $236,521 based on the most recent closing price.

Stock Fundamentals for VLO

Current profitability levels for the company are sitting at:

  • +9.60 for the present operating margin
  • +10.17 for the gross margin

The net margin for Valero Energy Corporation stands at +6.50. The total capital return value is set at 46.41, while invested capital returns managed to touch 34.37. Equity return is now at value 45.30, with 18.10 for asset returns.

Based on Valero Energy Corporation (VLO), the company’s capital structure generated 54.00 points at debt to equity in total, while total debt to capital is 35.06. Total debt to assets is 20.63, with long-term debt to equity ratio resting at 47.97. Finally, the long-term debt to capital ratio is 31.15.

When we switch over and look at the enterprise to sales, we see a ratio of 0.37, with the company’s debt to enterprise value settled at 0.21. The receivables turnover for the company is 15.85 and the total asset turnover is 2.94. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.38.

Conclusion

To wrap up, the performance of Valero Energy Corporation (VLO) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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