Director Of Valero Energy Sold $2.98M In Stock

A substantial insider sell was reported on January 22, by Joseph W Gorder, Director at Valero Energy VLO, based on the recent SEC filing.

What Happened: Gorder's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 23,760 shares of Valero Energy. The total transaction value is $2,975,583.

At Tuesday morning, Valero Energy shares are up by 0.1%, trading at $129.25.

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 United States, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons of ethanol 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's Financial Performance

Decline in Revenue: Over the 3 months period, Valero Energy faced challenges, resulting in a decline of approximately -13.61% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 9.79%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Valero Energy's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 7.49.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.44.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The P/E ratio of 4.4 is lower than the industry average, implying a discounted valuation for Valero Energy's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.31 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): Valero Energy's EV/EBITDA ratio at 2.8 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Understanding the Significance of Insider Transactions

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.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.