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 note issued to investors on Tuesday, December 5th.

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.”

Other equities research analysts have also issued reports about the company. Cowen restated a “hold” rating and set a $30.00 price target on shares of HollyFrontier in a research report on Tuesday, October 17th. JPMorgan Chase & Co. lowered HollyFrontier from a “neutral” rating to an “underweight” rating and lifted their price target for the company from $33.00 to $34.00 in a research report on Friday, October 6th. BidaskClub lowered HollyFrontier from a “buy” rating to a “hold” rating in a research report on Friday, August 11th. Royal Bank of Canada boosted their target price on HollyFrontier from $42.00 to $49.00 and gave the stock an “outperform” rating in a report on Monday, November 6th. Finally, Piper Jaffray Companies reissued a “hold” rating and issued a $38.00 target price on shares of HollyFrontier in a report on Friday, November 17th. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of $40.67.

Shares of HollyFrontier (NYSE HFC) traded down $0.28 during trading on Tuesday, reaching $51.22. The company’s stock had a trading volume of 1,077,116 shares, compared to its average volume of 2,191,178. The company has a quick ratio of 0.98, a current ratio of 2.00 and a debt-to-equity ratio of 0.41. The stock has a market cap of $9,129.56, a PE ratio of 26.96, a P/E/G ratio of 2.16 and a beta of 1.31. HollyFrontier has a 1-year low of $23.46 and a 1-year high of $52.00.

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, topping the Zacks’ consensus estimate of $0.89 by $0.25. The firm had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.24 billion. HollyFrontier had a return on equity of 5.18% and a net margin of 2.55%. The business’s quarterly revenue was up 30.6% compared to the same quarter last year. During the same period last year, the company earned $0.42 EPS. sell-side analysts forecast that HollyFrontier will post 2.38 earnings per share for the current year.

In other HollyFrontier news, Director Michael Jennings sold 4,500 shares of the business’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 $2,212,406.50. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director James H. Lee sold 5,149 shares of the business’s stock in a transaction that occurred on Wednesday, December 13th. The shares were sold at an average price of $47.17, for a total value of $242,878.33. Following the completion of the sale, the director now directly owns 52,240 shares in the company, valued at approximately $2,464,160.80. The disclosure for this sale can be found here. 0.51% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its position in HollyFrontier by 1.7% in the second quarter. Vanguard Group Inc. now owns 15,844,018 shares of the oil and gas company’s stock valued at $435,236,000 after purchasing an additional 260,132 shares during the period. State Street Corp raised its position in HollyFrontier by 3.9% in the second quarter. State Street Corp now owns 8,194,765 shares of the oil and gas company’s stock valued at $225,091,000 after purchasing an additional 311,196 shares during the period. Dimensional Fund Advisors LP raised its position in HollyFrontier by 2.2% in the second quarter. Dimensional Fund Advisors LP now owns 5,412,302 shares of the oil and gas company’s stock valued at $148,687,000 after purchasing an additional 116,502 shares during the period. Principal Financial Group Inc. raised its position in HollyFrontier by 129.6% in the second quarter. Principal Financial Group Inc. now owns 4,204,355 shares of the oil and gas company’s stock valued at $115,495,000 after purchasing an additional 2,373,560 shares during the period. Finally, Schroder Investment Management Group raised its position in HollyFrontier by 8.0% in the third quarter. Schroder Investment Management Group now owns 3,889,796 shares of the oil and gas company’s stock valued at $139,994,000 after purchasing an additional 288,191 shares during the period. 83.21% of the stock is currently owned by institutional investors.

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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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Analyst Recommendations for HollyFrontier (NYSE:HFC)

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