Unusual Put Option Trade in Valero Energy Worth $9,453K

Investing

Published: June 1, 2023 3:00 am

Last Updated: June 1, 2023 12:08 pm

On May 31, 2023 at 14:14:51 ET an unusually large $9,453.00K block of Put contracts in Valero Energy (VLO) was sold, with a strike price of $135.00 / share, expiring in 16 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.11 sigmas above the mean, placing it in the 99.34th percentile of all recent large trades made in VLO options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 2409 funds or institutions reporting positions in Valero Energy. This is an increase of 56 owner(s) or 2.38% in the last quarter. Average portfolio weight of all funds dedicated to VLO is 0.42%, a decrease of 3.36%. Total shares owned by institutions decreased in the last three months by 6.32% to 322,216K shares. The put/call ratio of VLO is 0.75, indicating a bullish outlook.

Analyst Price Forecast Suggests 39.02% Upside

As of May 11, 2023, the average one-year price target for Valero Energy is 155.23. The forecasts range from a low of 127.26 to a high of $197.40. The average price target represents an increase of 39.02% from its latest reported closing price of 111.66.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Valero Energy is 149,328MM, a decrease of 10.94%. The projected annual non-GAAP EPS is 17.08.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 11,490K shares representing 3.18% ownership of the company. In it’s prior filing, the firm reported owning 11,720K shares, representing a decrease of 2.00%. The firm decreased its portfolio allocation in VLO by 0.38% over the last quarter.

XLE – The Energy Select Sector SPDR Fund holds 11,080K shares representing 3.06% ownership of the company. In it’s prior filing, the firm reported owning 11,159K shares, representing a decrease of 0.72%. The firm increased its portfolio allocation in VLO by 17.49% over the last quarter.

Bank Of America holds 9,389K shares representing 2.60% ownership of the company. In it’s prior filing, the firm reported owning 5,454K shares, representing an increase of 41.91%. The firm decreased its portfolio allocation in VLO by 56.43% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 8,996K shares representing 2.49% ownership of the company. In it’s prior filing, the firm reported owning 8,912K shares, representing an increase of 0.93%. The firm increased its portfolio allocation in VLO by 3.01% over the last quarter.

Charles Schwab Investment Management holds 8,039K shares representing 2.22% ownership of the company. In it’s prior filing, the firm reported owning 8,682K shares, representing a decrease of 8.00%. The firm decreased its portfolio allocation in VLO by 15.48% over the last quarter.

Valero Energy Declares $1.02 Dividend

On May 9, 2023 the company declared a regular quarterly dividend of $1.02 per share ($4.08 annualized). Shareholders of record as of May 23, 2023 will receive the payment on June 22, 2023. Previously, the company paid $1.02 per share.

At the current share price of $111.66 / share, the stock’s dividend yield is 3.65%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.77%, the lowest has been 2.57%, and the highest has been 12.02%. The standard deviation of yields is 1.68 (n=237).

The current dividend yield is 0.66 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.11. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.04%, demonstrating that it has increased its dividend over time.

Valero Energy Background Information
(This description is provided by the company.)

Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 50 company based in San Antonio, Texas, and it operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 13 ethanol plants with a combined production capacity of approximately 1.68 billion gallons per year. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero is also a joint venture partner in Diamond Green Diesel, which owns and operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,000 outlets carry Valero’s brand names.

Key filings for this company: