Should Investors Be Selling HollyFrontier (NYSE:HFC) Shares? Scotia Howard Weil Downgrades Stock


HollyFrontier (NYSE:HFC) Receives a Downgrade

The stock rating of HollyFrontier (NYSE:HFC) was lowered by investment analysts at Scotia Howard Weil from a the old “Sector Outperform” rating to a more updated “Sector Perform” in analysts note disseminated on 15 December. The brokerage firm now has a $47.00 price target on shares, suggesting a possible upside of 14.47%.

From a total of 14 analysts covering HollyFrontier (NYSE:HFC) stock, 7 rate it a ”Buy”, 1 a “Sell”, and 11 a ”Hold”. This means that 37% of the ratings are positive. The highest target price is $66 while the lowest target price is $45. The mean of all analyst targets is $56.21 with a 43.50% above today’s ($41.29) stock price. HollyFrontier was the topic of 13 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on November 6 with “Outperform” rating. Oppenheimer maintained shares with “Outperform” rating and $58 target share price in a report from an August 6. Deutsche Bank maintained HFC stock in a recent report from September 6 with “Hold” rating. Scotia Capital upgraded the rating on August 6. Scotia Capital has a “Sector Perform” rating and a $59 price target on shares. Finally, Bank of America downgraded the stock to “Neutral” rating in a report issued on an August 24.

Approximately 3.15 million shares of stock traded hands or 46.51% up from the average. HollyFrontier Corp (NYSE:HFC) has risen 2.55% since May 12, 2015 and is uptrending. It has outperformed by 6.23% the S&P500.

The overall sentiment of institutions has decreased to 0.87 in Q2 2015. Its down 0.23, from 1.1 in 2015Q2. The ratio dived, as 66 institutions have sold all the shares of HollyFrontier Corp that they owned while 168 funds have taken shares off the table. 71 funds have purchased shares for the first time while 133 added to their positions. These institutions now hold 154.05 million shares or 1.96% more than the 151.09 million shares they owned in 2015Q2.

The Fund Tctc Holdings Llc currently is holding shares equating to 38.65% of its total portfolio in HollyFrontier Corp representing a total of 13.91 million shares. Another fund,Robertson Opportunity Capital Llc, is holding a total of 76,000 shares equating to 3.9% of their holdings. Additionally, 3G Capital Partners Lp has a 1.00 million share stake in HollyFrontier Corp which represents 3.61% of their total portfolio. The Fund, Karamaan Group Llc, based out of New York, has also built up a stake in the stock, which represents a total of 3.47% of their total portfolio. Finally Crossvault Capital Management Llc, a fund which is based in the state of Texas reported a total holdings of 81,310 shares.

Insider activity is a very important aspect to track on any stock. Going back to July 1, 2015, shareholders of HollyFrontier Corp have witnessed 0 insider purchases, and a total of 2 selling transactions equating to a net activity of approximately $735,254 . Lee James H sold 10,000 shares worth approximately $528,322. Stump James M. sold 5,000 shares worth approximately $206,932.

HollyFrontier Corporation is an independent petroleum refiner in the United States. The company has a market cap of $7.69 billion. The Firm produces refined products, such as gasoline, diesel fuel, jet fuel, lubricant products, and specialty and modified asphalt. It has 14 P/E ratio. The Firm operates through two divisions, namely, Refining and HEP.

According to Zacks Investment Research, “HollyFrontier Corporation is engaged in refining petroleum. It produces and markets gasoline, diesel, jet fuel, asphalt, heavy products and specialty lubricant products. HollyFrontier Corporation, formerly known as Holly Corporation, is headquartered in Dallas, Texas.”