Zacks Investment Research cut shares of HollyFrontier (NYSE:HFC) from a buy rating to a hold rating in a research note published on Monday morning.
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 contracting refining margins. In fact, the company delivered weaker–than-expected results in 4Q17 amid lower refined margins compared with 3Q17. Further, the U.S. refiners are feeling the pinch of higher RFS costs to comply with new cleaner gasoline production rules. Given these factors, we take a cautious stance on the prospects of the stock.”
Several other brokerages also recently commented on HFC. Cowen increased their price objective on HollyFrontier from $38.00 to $40.00 and gave the stock a market perform rating in a research note on Wednesday, February 21st. Bank of America lowered HollyFrontier from a neutral rating to an underperform rating in a report on Friday, December 8th. Royal Bank of Canada reaffirmed a buy rating and issued a $58.00 target price on shares of HollyFrontier in a report on Tuesday, January 30th. Howard Weil lowered HollyFrontier from a focus list rating to an outperform rating in a report on Friday, December 22nd. Finally, Tudor Pickering lowered HollyFrontier from a buy rating to a hold rating in a report on Wednesday, November 29th. Three analysts have rated the stock with a sell rating, twelve have given a hold rating and six have issued a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus target price of $44.20.
HollyFrontier (NYSE:HFC) last issued its quarterly earnings data on Wednesday, February 21st. The oil and gas company reported $0.70 EPS for the quarter, missing the consensus estimate of $0.82 by ($0.12). The company had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.85 billion. HollyFrontier had a return on equity of 7.51% and a net margin of 5.65%. The business’s revenue for the quarter was up 35.1% compared to the same quarter last year. During the same period last year, the company earned ($0.06) earnings per share. equities research analysts predict that HollyFrontier will post 3.6 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 14th. Shareholders of record on Wednesday, February 28th were issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 2.85%. The ex-dividend date of this dividend was Tuesday, February 27th. HollyFrontier’s dividend payout ratio (DPR) is 47.48%.
In other HollyFrontier news, SVP James M. Stump sold 30,000 shares of the stock in a transaction on Thursday, December 28th. The stock was sold at an average price of $51.21, for a total transaction of $1,536,300.00. Following the completion of the transaction, the senior vice president now directly owns 41,849 shares of the company’s stock, valued at $2,143,087.29. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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. BlackRock Inc. grew its holdings in HollyFrontier by 2.7% during the fourth quarter. BlackRock Inc. now owns 21,620,652 shares of the oil and gas company’s stock valued at $1,107,409,000 after purchasing an additional 565,625 shares during the period. Schroder Investment Management Group grew its holdings in HollyFrontier by 2.3% during the fourth quarter. Schroder Investment Management Group now owns 3,978,708 shares of the oil and gas company’s stock valued at $203,789,000 after purchasing an additional 88,912 shares during the period. Alliancebernstein L.P. grew its holdings in HollyFrontier by 1.5% during the fourth quarter. Alliancebernstein L.P. now owns 3,599,830 shares of the oil and gas company’s stock valued at $184,383,000 after purchasing an additional 52,890 shares during the period. Bank of New York Mellon Corp grew its holdings in HollyFrontier by 5.8% during the fourth quarter. Bank of New York Mellon Corp now owns 2,952,567 shares of the oil and gas company’s stock valued at $151,230,000 after purchasing an additional 162,312 shares during the period. Finally, APG Asset Management N.V. grew its holdings in HollyFrontier by 48.4% during the fourth quarter. APG Asset Management N.V. now owns 2,065,017 shares of the oil and gas company’s stock valued at $88,083,000 after purchasing an additional 673,300 shares during the period. 86.08% of the stock is 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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