14 Sep

Are Institutional Investors Bearish on Hi-Crush Partners?

WRITTEN BY Rekha Khandelwal, CFA

Institutional activity in EMES

According to the latest filings, Balyasny Asset Management and Morgan Stanley Investment Management sold net 0.70 million Emerge Energy Services (EMES) shares from their positions. Apart from Insight Equity, EMES’s sponsor, Morgan Stanley Investment Management, Balyasny Asset Management, and Ted Beneski are the three largest investors in EMES. They hold 6.2%, 4.4%, and 3.9%, respectively, of Emerge Energy Services’ outstanding shares.

Are Institutional Investors Bearish on Hi-Crush Partners?

As the above table shows, the top ten institutional investors in EMES together added net 0.02 million shares to their positions. Together, the top ten investors own 49.4% of EMES’s outstanding shares.

Institutions selling HCLP

Morgan Stanley Investment Management, Bank of America Merrill Lynch, and Goldman Sachs are the three largest institutional holders of Hi-Crush Partners (HCLP) stock. They hold 8.3%, 6.4%, and 3.9%, respectively, of HCLP’s outstanding shares.

The ten largest institutional owners of Hi-Crush Partners reduced a net 11.1 million shares from their holdings. Together, the top ten investors own 44.7% of HCLP’s outstanding shares. A net reduction of 8.8 million shares by Hi-Crush Proppants and 2.2 million HCLP shares by Morgan Stanley Investment Management are the largest position changes. Hi-Crush Proppants, which is Hi-Crush Partners’ sponsor, holds 13.1% interest in HCLP. It sold 8.8 million HCLP shares, according to a May 2017 filing.

Excluding the sale by Hi-Crush Proppants, the top nine investors in HCLP reduced their positions by net 2.3 million shares. These position changes could indicate a bearish sentiment of institutional investors for Hi-Crush Partners.

Next, we’ll take a look at the changes in short interest for HCLP and EMES.

Latest articles

The world is moving towards the next technology phase of AI or artificial intelligence. NVIDIA (NVDA) is the epicenter of AI computing.

Investors use a bunch of metrics to determine if a stock is attractive. One such metric is the PEG or the price-to-earnings-to-growth ratio.

First Solar stock has an EV-to-EBITDA valuation of 6.4x its estimated earnings for the next 12 months. The industry's mean valuation is greater than 11x.

Walmart (WMT) has once again confirmed its status as a grocery powerhouse. But with robots disrupting the workforce, will automation pay off?

On November 15, United Airlines (UAL) announced the removal of the troubled Boeing 737 MAX aircraft from its flying schedule until March 4, 2020.

In September, Minnesota's state legislators conducted surveys to determine public sentiment about cannabis legalization. About 55% favored legalization.