Insider Transaction: Richard Joe Walsh Sells $631K Worth Of Valero Energy Shares

Richard Joe Walsh, EVP & GC at Valero Energy VLO, reported an insider sell on January 21, according to a new SEC filing.

What Happened: Walsh's decision to sell 4,572 shares of Valero Energy was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $631,987.

Valero Energy's shares are actively trading at $139.25, experiencing a down of 0.2% during Wednesday's morning session.

Discovering Valero Energy: A Closer Look

Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which has the capacity to produce 1.2 billion gallons per year of renewable diesel.

Understanding the Numbers: Valero Energy's Finances

Negative Revenue Trend: Examining Valero Energy's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -14.39% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 2.26%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Valero Energy's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.14.

Debt Management: Valero Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.43.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 12.27 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.34 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 6.03, Valero Energy presents an attractive value opportunity.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Transactions Are Key in Investment Decisions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

The Insider's Guide to Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Valero Energy's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.