Are Valero Officials Privy to Insider Information?
When Valero Energy Corporation (NYSE:VLO) announced its second quarter net income jumped 11.7 percent on more fuel-making operations overseas, the company's stock rose in response by more than 5 percent.
However, amid this positive earnings report, company officials have continued to perform insider transactions that have amounted to hundreds of thousands of dollars.
The Texas-based oil refining company also said it may split its retail gasoline business. This would give the company a number of new options, and may come in the form of distributing the business among shareholders.
CEO Bill Klesse said such a move would result in greater flexibility for the company.
"As independent companies, both retail and the remaining business will be better-positioned to focus on their industry-specific strategies," Klesse said.
The announcement comes at a time when the company's gasoline wing is performing well, according to Bloomberg, with its retail business rising 27.4 percent in the second quarter of 2012.
But despite the positive outlook, company officials are continuing to trade behind the scenes. In the last three months, company officials have sold $304,680 in shares, which ranged from $22.22 to $22.74 each.
Why do you think Valero insiders are selling stock?
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