Fisher Eric A sold $1.8M of VLO

Valero Energy's shares declined after Jefferies downgraded the stock to 'Hold' from 'Buy' with a price target of $401. The company's shares have fallen 3.88% in the last 5 days and 4.46% year-to-date, despite a 133.02% increase over a longer period.

Jefferies downgraded Valero Energy and Marathon Petroleum to Hold from Buy, setting price targets of $401 and $413, respectively. The firm cited stretched valuations after recent gains. Both stocks traded lower on the news.

Valero Energy (VLO) shares fell 2.5% in pre-market trading after Jefferies downgraded the stock to Hold, citing high valuation and limited upside. The firm set a $401 price target, noting that current levels already reflect strong 2030 refining margins. Insider sales and weak crude oil prices also contributed to the decline. The S&P 500, Dow Jones, and Nasdaq traded flat, indicating sector-specific weakness.

Valero Energy (VLO) has gained 140% in 2026 due to high refining margins. Morgan Stanley raised its price target to $411, citing strong earnings and cash flows. VLO's Q2 profit was record-high, and it returned $2.6B to shareholders. Concerns include potential declines in refining margins and sustainability of shareholder returns.

Valero Energy (VLO) shares rose 140% in the past year, driven by Middle East tensions and strong refining operations. Q2 revenue increased 49% to $44B, net income surged to $3.7B. Growth was led by refining, ethanol, and renewable diesel. Risks include electrification, Iran conflict, and regulatory changes. Forward P/E is 14.39, similar to peers. Hedge fund interest increased in Q2.

BP, Valero, and Chevron secured fuel contracts with the U.S. Defense Logistics Agency. BP's contract is valued at $601.9 million, Valero's at $432.2 million, and Chevron's at $418 million. The one-year contracts are fixed-price with economic-price adjustments.