HF Sinclair (NYSE:DINO) Rating Lowered to "Strong Sell" at Freedom Capital

Key Points

• Freedom Capital downgraded HF Sinclair to “strong sell” from “hold,” despite a broader analyst consensus of “hold” and an average price target of $80.75. Ratings elsewhere range from “strong buy” to “sell,” highlighting significant disagreement.
• HF Sinclair reported a strong quarter, with EPS of $5.31 beating the $4.49 estimate and revenue of $10.39 billion exceeding the $8.68 billion forecast; revenue rose 53.2% year over year.
• The company plans to separate its Lubricants and Specialties business and retire Canadian base-oil refining assets, while also raising its quarterly dividend by 5% to $0.525 per share.

HF Sinclair (NYSE:DINO - Get Free Report) was downgraded by research analysts at Freedom Capital from a "hold" rating to a "strong sell" rating in a report issued on Tuesday,Zacks.com reports.

Several other research analysts have also commented on the company. Mizuho restated a "neutral" rating and set a $79.00 price target (up from $67.00) on shares of HF Sinclair in a research report on Wednesday, May 27th. Wall Street Zen upgraded HF Sinclair from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 9th. UBS Group boosted their price objective on HF Sinclair from $65.00 to $80.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Wells Fargo & Company raised their target price on shares of HF Sinclair from $58.00 to $67.00 and gave the company an "equal weight" rating in a report on Tuesday, March 31st. Finally, The Goldman Sachs Group reiterated a "buy" rating and set a $114.00 target price on shares of HF Sinclair in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $80.75.

HF Sinclair Stock Performance

NYSE:DINO opened at $90.00 on Tuesday. The firm has a market capitalization of $16.22 billion, a price-to-earnings ratio of 8.59 and a beta of 0.72. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.79 and a quick ratio of 0.88. The company's 50-day moving average is $74.89 and its two-hundred day moving average is $64.02. HF Sinclair has a 1-year low of $42.16 and a 1-year high of $94.22.

HF Sinclair (NYSE:DINO - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The company reported $5.31 earnings per share for the quarter, topping the consensus estimate of $4.49 by $0.82. HF Sinclair had a return on equity of 18.62% and a net margin of 6.13%.The company had revenue of $10.39 billion during the quarter, compared to analyst estimates of $8.68 billion. During the same period in the prior year, the business posted $1.10 earnings per share. The firm's revenue for the quarter was up 53.2% compared to the same quarter last year. Analysts forecast that HF Sinclair will post 11.15 EPS for the current year.

Insiders Place Their Bets

In related news, Director Rhoman J. Hardy acquired 1,508 shares of HF Sinclair stock in a transaction that occurred on Tuesday, June 16th. The stock was purchased at an average price of $66.32 per share, for a total transaction of $100,010.56. Following the completion of the purchase, the director directly owned 15,037 shares of the company's stock, valued at approximately $997,253.84. This trade represents a 11.15% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Matthew Joyce sold 2,384 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $69.73, for a total transaction of $166,236.32. Following the sale, the senior vice president directly owned 14,797 shares in the company, valued at approximately $1,031,794.81. This represents a 13.88% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 13,736 shares of company stock worth $954,694. Insiders own 0.26% of the company's stock.

Institutional Investors Weigh In On HF Sinclair

A number of institutional investors and hedge funds have recently modified their holdings of the company. Northside Capital Management LLC acquired a new position in HF Sinclair during the second quarter worth $209,000. Steadtrust LLC purchased a new stake in HF Sinclair during the second quarter worth $223,000. Hennion & Walsh Asset Management Inc. grew its holdings in HF Sinclair by 92.8% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 11,815 shares of the company's stock valued at $823,000 after purchasing an additional 5,686 shares during the last quarter. GAMMA Investing LLC increased its position in shares of HF Sinclair by 8.8% in the second quarter. GAMMA Investing LLC now owns 8,724 shares of the company's stock valued at $608,000 after buying an additional 708 shares in the last quarter. Finally, Mader & Shannon Wealth Management Inc. increased its position in shares of HF Sinclair by 1.2% in the second quarter. Mader & Shannon Wealth Management Inc. now owns 74,608 shares of the company's stock valued at $5,196,000 after buying an additional 895 shares in the last quarter. Institutional investors and hedge funds own 88.29% of the company's stock.

Key Headlines Impacting HF Sinclair

Here are the key news stories impacting HF Sinclair this week:

• Positive Sentiment: Q2 results significantly exceeded expectations. HF Sinclair reported adjusted earnings of $5.31 per share, above the $4.49 consensus estimate, while revenue reached $10.39 billion versus expectations of $8.68 billion. Net income was $892 million, or $4.93 per diluted share, compared with $208 million, or $1.10 per share, a year earlier. Higher refining margins and increased throughput drove the improvement. Reuters: HF Sinclair beats quarterly profit estimates
• Positive Sentiment: Lubricants and Specialties separation could unlock value. HF Sinclair plans to pursue a tax-efficient separation of the business through the capital markets, creating an independent, publicly traded company. Management says the new entity would have a capital-light model and greater financial flexibility; the business includes lubricants associated with the company’s DINO-branded motor oil. Financial Post: HF Sinclair strategic transformation
• Positive Sentiment: Dividend increased 5%. The quarterly payout was raised to $0.525 per share from $0.50, with a 2.3% indicated yield. The dividend is payable September 2 to shareholders of record August 11. Business Wire: HF Sinclair second-quarter results and dividend increase
• Neutral Sentiment: HF Sinclair also plans to retire Canadian base-oil refining assets, a move intended to streamline the portfolio but potentially reducing some operating capacity.
• Negative Sentiment: Analysts have cautioned that the spinoff plan may be largely reflected in the stock’s valuation after the earnings-driven advance, limiting additional near-term upside.

HF Sinclair Company Profile

HF Sinclair Corporation is a diversified energy manufacturing company engaged in the refining, marketing, and transportation of petroleum products across the United States. The company operates a network of refineries and processing facilities that convert crude oil and other feedstocks into fuels and specialty products. Its integrated model encompasses upstream supply agreements, midstream logistics, and downstream marketing channels, positioning HF Sinclair as a key supplier of refined products to wholesale and retail markets.

The company’s core product slate includes gasoline, diesel, jet fuel, and renewable fuels such as renewable diesel and biodiesel.

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