HollyFrontier has the highest institutional holding, standing at about 89%. The smallest institutional holding is in Phillips 66, standing at about 72%. The institutional holdings in Marathon Petroleum and Valero stand at about 80% each.
Institutions lower or raise their holdings in Q3 based on their evaluation of these companies’ second-quarter results. Refining companies’ earnings topped analysts’ estimates in the second quarter.
Let’s briefly review changes in the top institutional holdings in each stock in the second quarter. We will also look at refiners’ latest earnings performance.
Institutional holdings in Marathon Petroleum and Valero Energy
The institutions with the highest holdings in Marathon Petroleum include The Vanguard Group, State Street Global Advisors, BlackRock Institutional Trust Company, and J.P. Morgan Asset Management. In the second quarter, all four institutions lowered their holdings in the stock.
Of the top nine institutional holders in Marathon Petroleum, five institutions lowered their stakes in the stock in Q2. If we review the past six months’ activity, then Boston Partners is the highest buyer. Viking Global Investors is the highest seller in Marathon Petroleum stock in the past six months.
In Q2, Marathon Petroleum’s EPS stood at $1.73, which exceeded Wall Street analysts’ estimate of $1.32 by 31%. Marathon Petroleum’s Q2 operating earnings rose 19% YoY to $2.0 billion, due to higher Retail and Midstream earnings. However, MPC stock did not react positively to its earnings.
Similarly, Valero Energy’s EPS of $1.51 exceeded its estimated EPS of $1.37. Valero’s net income fell 28% YoY to $612 million. The fall in Valero’s Refining and Ethanol segments’ operating income led to a decline in its net income. However, its Renewable Diesel segment’s operating income rose in the quarter. Valero stock slumped on its second-quarter earnings.
While Vanguard and BlackRock raised their stakes in Valero Energy in the second quarter, State Street and Fidelity lowered their stakes. The institutions with the largest holdings in VLO are The Vanguard Group, BlackRock Institutional Trust Company, State Street Global Advisors, and Fidelity Management and Research Company.
In the last six months, Boston Partners is the highest buyer and AQR Capital Management is the highest seller in Valero Energy stock.
Institutional holdings in Phillips 66
The Vanguard Group and State Street Global Advisors are the top holders in Phillips 66 stock, followed by BlackRock Institutional Trust Company and Barrow, Hanley, Mewhinney & Strauss. Of these, Vanguard and BlackRock raised their holdings in Phillips 66 in the second quarter, and the others lowered their holdings.
In the second quarter, Phillips 66’s EPS of $3.02 surpassed analysts’ estimate by 10%. Phillips 66’s adjusted income rose 7% YoY to $1.5 billion. The rise was due to higher Midstream and Marketing segments’ income, partially offset by lower Refining and Chemicals segments income. Phillips 66 stock rose on its earnings.
In the past six months, Fidelity Management and Research Company is the highest seller, and Wells Fargo is the highest buyer in Phillips 66 stock.
Institutional ownership in HollyFrontier
The Vanguard Group, Turtle Creek Management, BlackRock Institutional Trust Company, and State Street Global Advisors are large holders of HollyFrontier stock. Vanguard, BlackRock, and State Street lowered their holdings in HollyFrontier stock in the second quarter. In the past six months, Two Sigma Investments has been the highest buyer, and AQR Capital Management has been the highest seller in HollyFrontier stock.
In the second quarter, Holly Frontier’s EPS of $2.18 exceeded its estimate by a whopping 33%. Holly Frontier’s refining margin rose year-over-year in the second quarter, raising its refining segment’s adjusted EBITDA by 44% YoY.
The company’s midstream adjusted EBITDA rose 8% YoY. Notably, HollyFrontier stock rose on its earnings release day. To learn more, please read HFC Stock Continues Climb Past 44% YoY Rise.