B.Riley FBR Sticks to Their Hold Rating for Hi-Crush Partners (HCLP)

By Carrie Williams

In a report released yesterday, Lucas Pipes from B.Riley FBR reiterated a Hold rating on Hi-Crush Partners (HCLPResearch Report), with a price target of $5.50. The company’s shares closed yesterday at $3.60, close to its 52-week low of $3.19.

Pipes wrote:

“Partners (HCLP) reported 1Q19 earnings of $16.2M in adj. EBITDA, lower than our $22.9M and consensus $19M. The miss can be attributed to lower-than-expected realized prices of $48/ton vs. our estimate of $59/ton. While HCLP continues to realize declines in contribution margin per ton, HCLP was successful in growing sales volumes to 2.4M tons which represents a 22% increase sequentially. The increased percentage of in-basin sales relative to total sales partially contributed to the 17% decline in realized pricing from the prior quarter. However, previously reported renegotiation of sales contracts at Kermit was the largest driver. In 2Q19, management expects realized prices to be flat sequentially and sales volumes to be in the range of 2.5M to 2.7M tons.”

According to TipRanks.com, Pipes is a 3-star analyst with an average return of 0.8% and a 48.1% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Covia Holdings Corporation, and CONSOL Coal Resources LP.

Currently, the analyst consensus on Hi-Crush Partners is a Moderate Sell with an average price target of $3.75.

See today’s analyst top recommended stocks >>

Based on Hi-Crush Partners’ latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $9.93 million. In comparison, last year the company had a net profit of $53.95 million.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Hi-Crush Partners LP engages in the production of monocrystalline sand. It owns, operates, and develops sand reserves and related excavation as well as processing facilities. The firm produces frac sand and specialized mineral.