Short interest in HollyFrontier
Since April 1, short interest in HollyFrontier (HFC) has fallen from 5.0% to 3.7%, while its stock value has fallen 18.2%. A decrease in short interest suggests a reduction in bearish sentiment toward a stock.
Why the change in sentiment?
HollyFrontier’s decrease in short interest could be due to the company’s better-than-expected first-quarter revenue and earnings and strengthening cracks. HollyFrontier’s first-quarter adjusted EPS of $0.54 were weak, though they beat analysts’ estimate of $0.43. It had revenue of $3.9 billion.
This quarter, HollyFrontier’s refining index values have risen in the Midcon, Rockies, and Southwest regions by 16%, 13%, and 9% year-over-year, respectively, suggesting cracks are strengthening. Better cracks can offset narrower oil spreads.