Holly Stock Story


USD 17.74  0.43  2.48%   

Holly Energy Dividend Yield is very stable at the moment as compared to the past year. Holly Energy reported last year Dividend Yield of 0.09. As of 9th of May 2022, Dividends per Basic Common Share is likely to grow to 1.94, while Earnings before Tax are likely to drop about 199.5 M. The underlying rationale for this short perspective is to recap Holly as an investment oportunity for June. We will focus on why recent Holly Energy price moves suggest a bounce in June.
Published over three months ago
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Will holding Holly (NYSE:HEP) be justified in June 2022?

The company has a beta of 0.7222. Let's try to break down what Holly's beta means in this case. Holly Energy returns are very sensitive to returns on the market. As the market goes up or down, Holly Energy is expected to follow. The beta indicator helps investors understand whether Holly Energy moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Holly deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Holly Energy Partners. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Holly Energy

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Holly Energy's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Holly Energy in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Holly Energy. Your research has to be compared to or analyzed against Holly Energy's peers to derive any actionable benefits. When done correctly, Holly Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Holly Energy Partners.

How important is Holly Energy's Liquidity

Holly Energy financial leverage refers to using borrowed capital as a funding source to finance Holly Energy Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Holly Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Holly Energy's total debt and its cash.

How does Holly utilize its cash?

To perform a cash flow analysis of Holly Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Holly Energy is receiving and how much cash it distributes out in a given period. The Holly Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Holly Energy Net Cash Flow from Operations is very stable at the moment as compared to the past year. Holly Energy reported last year Net Cash Flow from Operations of 294.1 Million

What is driving Holly Energy Investor Appetite?

The recent indifference towards the small price fluctuations of Holly Energy may raise some interest from insiders. The stock closed today at a share price of 18.24 on very low momentum in trading volume. The company executives did not add any value to Holly Energy Partners investors in April. However, most investors can still diversify their portfolios with Holly Energy to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.3. The current volatility is consistent with the ongoing market swings in April 2022 as well as with Holly Energy Partners unsystematic, company-specific events.

Returns Breakdown

Return on Assets
Return on Equity
Return Capital
Return on Assets0.0939
Return on Equity0.46
Return Capital0.0798
Return on Sales0.58

Will Holly Energy recent roll up continue?

The potential upside is down to 3.93 as of today. Holly Energy Partners exhibits very low volatility with skewness of 0.26 and kurtosis of -0.52. However, we advise investors to further study Holly Energy Partners technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Holly Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Holly Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Holly Energy Implied Volatility

Holly Energy's implied volatility exposes the market's sentiment of Holly Energy Partners stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Holly Energy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Holly Energy stock will not fluctuate a lot when Holly Energy's options are near their expiration.

Our Final Take On Holly Energy

Although other entities within the oil & gas midstream industry are still a little expensive, even after the recent corrections, Holly Energy may offer a potential longer-term growth to insiders. While some insiders may not share our view, we believe it may be a good time to increase your existing holdings in Holly. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Holly Energy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Holly Energy Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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