HollyFrontier (HFC) Rating Increased to Buy at Zacks Investment Research

HollyFrontier (NYSE:HFC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The firm currently has a $57.00 price target on the oil and gas company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 11.90% from the company’s current price.

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. We also expect improving refining outlook to buoy the company’s bottom line in the near future. All these factors are also refleced in the company's solid earnings estimate revisions for the current year and impressive price performance. Consequently, we think HollyFrontier offers substantial upside potential from the current price levels and view it as a preferred energy play to own now.”

A number of other research firms have also issued reports on HFC. Macquarie raised shares of HollyFrontier from an “underperform” rating to a “neutral” rating in a research note on Tuesday. Credit Suisse Group initiated coverage on shares of HollyFrontier in a research note on Wednesday, January 3rd. They issued a “neutral” rating and a $51.00 price target for the company. Barclays reaffirmed a “buy” rating and issued a $65.00 price target on shares of HollyFrontier in a research note on Wednesday, January 10th. ValuEngine raised shares of HollyFrontier from a “hold” rating to a “buy” rating in a research note on Sunday, December 31st. Finally, Howard Weil lowered shares of HollyFrontier from a “focus list” rating to an “outperform” rating in a research note on Friday, December 22nd. Two investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and seven have assigned a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $42.93.

HollyFrontier (NYSE:HFC) traded up $0.03 during trading on Friday, reaching $50.94. 1,797,916 shares of the company’s stock were exchanged, compared to its average volume of 2,123,454. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.00 and a quick ratio of 0.98. The firm has a market cap of $9,030.00, a price-to-earnings ratio of 26.81, a price-to-earnings-growth ratio of 1.58 and a beta of 1.30. HollyFrontier has a 52-week low of $23.46 and a 52-week high of $53.21.

HollyFrontier (NYSE:HFC) last posted its earnings results on Wednesday, November 1st. The oil and gas company reported $1.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.89 by $0.25. The firm had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.24 billion. HollyFrontier had a net margin of 2.55% and a return on equity of 5.18%. HollyFrontier’s revenue was up 30.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.42 EPS. research analysts anticipate that HollyFrontier will post 2.35 earnings per share for the current year.

In related news, CAO John W. Gann, Jr. sold 11,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 6th. The shares were sold at an average price of $42.06, for a total value of $462,660.00. Following the sale, the chief accounting officer now directly owns 35,705 shares in the company, valued at approximately $1,501,752.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO John W. Gann, Jr. sold 2,000 shares of the business’s stock in a transaction that occurred on Saturday, November 10th. The shares were sold at an average price of $41.96, for a total transaction of $83,920.00. Following the sale, the chief accounting officer now owns 35,705 shares in the company, valued at approximately $1,498,181.80. The disclosure for this sale can be found here. Insiders sold a total of 82,649 shares of company stock worth $4,062,308 over the last quarter. Insiders own 0.51% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in HFC. AXA acquired a new stake in shares of HollyFrontier during the second quarter valued at approximately $417,000. Riverhead Capital Management LLC raised its holdings in shares of HollyFrontier by 76.9% during the second quarter. Riverhead Capital Management LLC now owns 12,915 shares of the oil and gas company’s stock valued at $355,000 after acquiring an additional 5,615 shares during the period. Teachers Advisors LLC raised its holdings in shares of HollyFrontier by 3.9% during the second quarter. Teachers Advisors LLC now owns 426,925 shares of the oil and gas company’s stock valued at $11,728,000 after acquiring an additional 15,957 shares during the period. TIAA CREF Investment Management LLC raised its holdings in shares of HollyFrontier by 8.0% during the second quarter. TIAA CREF Investment Management LLC now owns 499,447 shares of the oil and gas company’s stock valued at $13,720,000 after acquiring an additional 37,003 shares during the period. Finally, Amalgamated Bank raised its holdings in shares of HollyFrontier by 34.1% during the second quarter. Amalgamated Bank now owns 34,730 shares of the oil and gas company’s stock valued at $954,000 after acquiring an additional 8,841 shares during the period. Institutional investors and hedge funds own 83.21% of the company’s stock.

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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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