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 Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!