EVP & CFO At Valero Energy Sells $1.46M Of Stock

Disclosed on January 21, Jason W Fraser, EVP & CFO at Valero Energy VLO, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Fraser executed a sale of 10,586 shares of Valero Energy with a total value of $1,463,302.

The latest market snapshot at Wednesday morning reveals Valero Energy shares down by 0.81%, trading at $138.4.

Get to Know Valero Energy Better

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

Decline in Revenue: Over the 3 months period, Valero Energy faced challenges, resulting in a decline of approximately -14.39% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.

Profitability Metrics: Unlocking Value

• Gross Margin: With a low gross margin of 2.26%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Valero Energy's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.14.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.43.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The P/E ratio of 12.27 is lower than the industry average, implying a discounted valuation for Valero Energy's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.34 is lower than the industry average, implying a discounted valuation for Valero Energy's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 6.03 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Navigating the Impact of Insider Transactions on Investments

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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.

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