HollyFrontier (HFC) Downgraded by Zacks Investment Research
HollyFrontier (NYSE:HFC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “HollyFrontier is one of the largest independent oil refiners in the U.S. with the capability to process a wide mix of crude. While its access to some of the fastest growing domestic markets bode well for the downstream operator, the Petro-Canada Lubricants acquisition has helped HollyFrontier expand into a high-margin, less competitive business. A strong financial position and attractive yields are other positives in the HFC story. However, HollyFrontier has been bogged down by lingering issues pertaining to the refining margins, plus cost escalation associated with maintenance downtime and unplanned refinery shutdowns. As it is, we remain wary of the continued pressure on HollyFrontier's top line. Last but not the least, the U.S. refiners are feeling the pinch of higher RFS costs to comply with new cleaner gasoline production rules. Given these factors, we see HFC as a stock that ordinary investors should hold.”
A number of other brokerages have also weighed in on HFC. Tudor Pickering lowered HollyFrontier from a “buy” rating to a “hold” rating in a research note on Wednesday, November 29th. Argus upgraded HollyFrontier from a “hold” rating to a “buy” rating and set a $53.00 price objective for the company in a research note on Monday, November 20th. Piper Jaffray Companies restated a “hold” rating and set a $38.00 price objective on shares of HollyFrontier in a research note on Friday, November 17th. Barclays raised their price objective on HollyFrontier from $47.00 to $57.00 and gave the company an “overweight” rating in a research note on Tuesday, November 14th. Finally, TheStreet upgraded HollyFrontier from a “c+” rating to a “b” rating in a research note on Wednesday, November 1st. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $38.59.
HollyFrontier (NYSE:HFC) last issued its quarterly earnings data on Wednesday, November 1st. The oil and gas company reported $1.14 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.25. HollyFrontier had a return on equity of 5.18% and a net margin of 2.55%. The firm had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.24 billion. During the same quarter last year, the firm earned $0.42 EPS. HollyFrontier’s quarterly revenue was up 30.6% on a year-over-year basis. equities analysts anticipate that HollyFrontier will post 2.17 EPS for the current year.
In related news, Director Michael Jennings sold 4,500 shares of the firm’s stock in a transaction that occurred on Thursday, November 30th. The stock was sold at an average price of $44.50, for a total value of $200,250.00. Following the sale, the director now owns 49,717 shares of the company’s stock, valued at approximately $2,212,406.50. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.51% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vantage Financial Partners Ltd. Inc. bought a new stake in shares of HollyFrontier in the 2nd quarter worth approximately $204,000. AT Bancorp bought a new stake in shares of HollyFrontier in the 2nd quarter worth approximately $104,000. Toronto Dominion Bank lifted its holdings in shares of HollyFrontier by 6.3% in the 2nd quarter. Toronto Dominion Bank now owns 3,994 shares of the oil and gas company’s stock worth $110,000 after purchasing an additional 235 shares during the last quarter. FNY Managed Accounts LLC bought a new stake in shares of HollyFrontier in the 3rd quarter worth approximately $163,000. Finally, Ffcm LLC lifted its holdings in shares of HollyFrontier by 2,500.0% in the 2nd quarter. Ffcm LLC now owns 4,628 shares of the oil and gas company’s stock worth $130,000 after purchasing an additional 4,450 shares during the last quarter. 83.31% of the stock is currently owned by institutional investors and hedge funds.
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HollyFrontier Company Profile
HollyFrontier Corporation is an independent petroleum refiner. The Company produces various light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. It segments include Refining and Holly Energy Partners, L.P. (HEP). The Refining segment includes the operations of the Company’s El Dorado, Kansas (the El Dorado Refinery); refinery facilities located in Tulsa, Oklahoma (collectively, the Tulsa Refineries); a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the Navajo Refinery); refinery located in Cheyenne, Wyoming (the Cheyenne Refinery); a refinery in Woods Cross, Utah (the Woods Cross Refinery), and HollyFrontier Asphalt Company (HFC Asphalt).
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