Insider Buys at Holly Energy Partners L.P. (HEP): CEO and CFO Acquire Stock

Holly Energy Partners, L.P. (NYSE:HEP), a $2 billion market cap oil midstream company engaged in the business of operating a system of petroleum product and crude oil pipelines, storage tanks, distribution terminals and loading rack facilities, saw two of its insiders acquire its stock over the past couple of weeks.

Most recently, on June 20, Michael Jennings, Chief Executive Officer*, purchased 1,000 of Holly Energy Partners, L.P. (NYSE:HEP)’s Common Units $33.546 per share. After having spent $33,546 on the insider owns 7,000 shares of the energy company.

Holly Energy Partners

The previous week, on June 13, Doug Aron, Executive Vice President and Chief Financial Officer, bought 3,000 Common Units for prices ranging from $32.55 to $32.58 per unit. Following this $97,740.00 purchase, Mr. Aron holds 5,000 shares indirectly, and another 840, indirectly.

However, it seems like it is only these two insiders that feel bullish about Holly Energy Partners, L.P. (NYSE:HEP). Earlier this month, two Board Directors (William Stengel and Charles M. Darling IV) disposed of more than $114,000 in stock, or 3,208 shares.

Moreover, hedge funds seem to be following the same track as these Directors. One of the company’s largest hedge fund shareholders, Jim Simons’ Renaissance Technologies last declared having reduced its stake in the company by 28%, to 102,154 shares. And, Ken Griffin’s Citadel Investment Group recently sold out all of its Holly Energy Partners, L.P. (NYSE:HEP) shares -4,595 Common Units, 1,200 call options, and 2,600 put options.

So, you might wonder: should I feel bearish or bullish on this stock? Well, both positions have a valid foundation. On the one hand, Holly Energy Partners, L.P. (NYSE:HEP) boasts industry leading margins and returns (see graph below), while trading below industry average valuations in relation to its earnings. On the other hand, valuation in relation to its sales and book-values looks pretty unattractive, and debt levels, concerning. Moreover, long-term growth projections look just fine, but not great: analysts expect the company to deliver an average annual EPS growth rates around 12%-13% over the next five years, versus an industry average of 17%-18%.

* “Mr. Jennings is the Chief Executive Officer and a director of Holly Logistic Services, L.L.C. Holly Logistic Services, L.L.C. is the general partner of HEP Logistics Holdings, L.P., the general partner of the Issuer” (Sec.gov).

Disclosure: Javier Hasse holds no position in any stocks mentioned

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!