Valero Energy Director Sold $113K In Company Stock

On May 13, a recent SEC filing unveiled that Kimberly S Greene, Director at Valero Energy VLO made an insider sell.

What Happened: Greene's decision to sell 720 shares of Valero Energy was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $113,850.

The latest update on Tuesday morning shows Valero Energy shares down by 1.09%, trading at $154.23.

Delving into Valero Energy's Background

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 United States, 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 capacity to produce 1.2 billion gallons per year of renewable diesel.

Valero Energy: Delving into Financials

Revenue Challenges: Valero Energy's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -12.84%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Analyzing Profitability Metrics:

• Gross Margin: With a low gross margin of 6.21%, 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 significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.75.

Debt Management: Valero Energy's debt-to-equity ratio is below the industry average at 0.42, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 7.65 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.38 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Valero Energy's EV/EBITDA ratio, lower than industry averages at 4.47, indicates attractively priced shares.

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

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Exploring Key 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.

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