Some Traders See Unusual Bearish Options Activity in Valero Energy Corporation

 Some Traders See Unusual Bearish Options Activity in Valero Energy Corporation

In today’s session Valero Energy Corporation (VLO) recorded an unusually high (2,008) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious VLO decrease. With 2,008 contracts traded and 63404 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: VLO161021P00054500 closed last at: $1.19 or 11.9% down. About 2.56M shares traded hands. Valero Energy Corporation (NYSE:VLO) has declined 16.46% since March 14, 2016 and is downtrending. It has underperformed by 22.07% the S&P500.

Analysts await Valero Energy Corporation (NYSE:VLO) to report earnings on October, 26. They expect $0.98 earnings per share, down 64.87% or $1.81 from last year’s $2.79 per share. VLO’s profit will be $451.60 million for 13.80 P/E if the $0.98 EPS becomes a reality. After $1.07 actual earnings per share reported by Valero Energy Corporation for the previous quarter, Wall Street now forecasts -8.41% negative EPS growth.

Valero Energy Corporation (NYSE:VLO) Ratings Coverage

Out of 11 analysts covering Valero Energy Corporation (NYSE:VLO), 6 rate it a “Buy”, 0 “Sell”, while 5 “Hold”. This means 55% are positive. Valero Energy Corporation has been the topic of 23 analyst reports since July 24, 2015 according to StockzIntelligence Inc. The stock of Valero Energy Corporation (NYSE:VLO) earned “Neutral” rating by Bank of America on Monday, August 24. Credit Suisse maintained the shares of VLO in a report on Tuesday, January 26 with “Outperform” rating. The stock has “Outperform” rating given by Oppenheimer on Monday, August 3. The rating was maintained by RBC Capital Markets with “Outperform” on Friday, July 31. The stock of Valero Energy Corporation (NYSE:VLO) has “Neutral” rating given on Thursday, May 19 by UBS. The firm has “Outperform” rating given on Friday, July 24 by Macquarie Research. The rating was maintained by Piper Jaffray on Monday, August 22 with “Neutral”. Jefferies initiated Valero Energy Corporation (NYSE:VLO) on Tuesday, August 23 with “Buy” rating. On Monday, May 16 the stock rating was downgraded by Tudor Pickering to “Hold”. Vetr downgraded it to “Strong-Buy” rating and $73.88 target price in Tuesday, August 11 report.

According to Zacks Investment Research, “Valero Energy Corporation owns and operates refineries in the United States and Canada with a combined throughput capacity of approximately two million BPD, making it one of the nation’s top refiners of petroleum products. Valero is also one of the nation’s leading retail operators with retail outlets in the United States and Canada under various brand names including Diamond Shamrock, Ultramar, Valero, Beacon and Total.”

Insitutional Activity: The institutional sentiment increased to 0.98 in 2016 Q2. Its up 0.02, from 0.96 in 2016Q1. The ratio is positive, as 87 funds sold all Valero Energy Corporation shares owned while 287 reduced positions. 72 funds bought stakes while 296 increased positions. They now own 353.74 million shares or 8.81% less from 387.93 million shares in 2016Q1.
James Invest Inc reported 912,811 shares or 1.18% of all its holdings. Malaga Cove Cap Ltd Company last reported 32,760 shares in the company. First Heartland Consultants reported 7,953 shares or 0.04% of all its holdings. The New York-based Douglass Winthrop Limited Company has invested 0.09% in Valero Energy Corporation (NYSE:VLO). Moreover, Next Fincl Grp Inc has 0.17% invested in Valero Energy Corporation (NYSE:VLO) for 10,418 shares. Edge Wealth Ltd Liability accumulated 0% or 50 shares. Park National Oh accumulated 7,128 shares or 0.02% of the stock. The United Kingdom-based Henderson Public Lc has invested 0.03% in Valero Energy Corporation (NYSE:VLO). The New York-based Bank Of New York Mellon has invested 0.18% in Valero Energy Corporation (NYSE:VLO). Pillar Pacific Capital Mngmt Limited Liability Company last reported 0.07% of its portfolio in the stock. Moreover, Winton Capital Limited has 1.02% invested in Valero Energy Corporation (NYSE:VLO) for 1.22 million shares. Coastline Trust Company owns 42,890 shares or 0.44% of their US portfolio. Bluefin Trading Limited Liability holds 0.03% of its portfolio in Valero Energy Corporation (NYSE:VLO) for 4,942 shares. Verition Fund Management Limited Liability Company holds 0.07% or 10,633 shares in its portfolio. Cubist Systematic Strategies Ltd Liability last reported 31,890 shares in the company.

Valero Energy Corporation , through Valero Energy Partners LP (VLP), owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The company has a market cap of $24.93 billion. The Firm operates in two divisions: refining and ethanol. It has a 8.74 P/E ratio. The Company’s refining segment includes refining and marketing activities in the United States, Canada, the United Kingdom, Aruba and Ireland.

VLO Company Profile

Valero Energy Corporation (Valero), incorporated on June 8, 1981, through Valero Energy Partners LP (VLP), owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Firm operates in two divisions: refining and ethanol. The Company’s refining segment includes refining and marketing activities in the United States, Canada, the United Kingdom, Aruba and Ireland. The Company’s ethanol segment includes ethanol and marketing activities in the United States. VLP’s assets include crude oil and refined petroleum products pipeline and terminal systems in the United States Gulf Coast and the United States Mid-Continent regions. The Company’s refineries can produce conventional gasolines, premium gasolines, gasoline meeting the specifications of the California Air Resources Board (CARB), diesel, low-sulfur diesel, ultra-low-sulfur diesel, CARB diesel, other distillates, jet fuel, asphalt, petrochemicals, lubricants and other refined products. It markets branded and unbranded refined products on a wholesale basis in the United States, Canada, the Caribbean, the United Kingdom and Ireland through a bulk and rack marketing network, and through approximately 7,500 outlets that carry its brand names. It also owns over 10 ethanol plants in the central plains region of the United States that primarily produce ethanol, which it markets on a wholesale basis through a bulk-marketing network.

Another recent and important Valero Energy Corporation (NYSE:VLO) news was published by Investorplace.com which published an article titled: “Valero Energy Corporation (VLO) Stock Is the Perfect Long-Term Choice” on October 13, 2016.

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