Hess Midstream Partners' (HESM) Neutral Rating Reiterated at Citigroup

Key Points

• Citigroup has reaffirmed its "neutral" rating on Hess Midstream Partners with a revised price target of $41.00, indicating a potential upside of 3.64% from the stock's previous close.
• Several brokerages have varied opinions on the stock; while Wall Street Zen upgraded it to "buy," Citigroup, UBS, and JPMorgan maintain "neutral" ratings with price targets between $41.00 and $48.00.
• Hess Midstream Partners reported better-than-expected quarterly earnings with $0.74 EPS, exceeding the consensus estimate of $0.56, alongside a revenue increase of 13.3% year-over-year.

Citigroup reissued their neutral rating on shares of Hess Midstream Partners (NYSE:HESM - Free Report) in a report released on Thursday,Benzinga reports. Citigroup currently has a $41.00 price target on the stock, down from their prior price target of $42.00.

Other analysts have also issued reports about the company. Wells Fargo & Company raised their price objective on Hess Midstream Partners from $47.00 to $48.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Wall Street Zen raised Hess Midstream Partners from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. UBS Group reaffirmed a "neutral" rating and issued a $43.00 price target (down from $45.00) on shares of Hess Midstream Partners in a research note on Wednesday, September 10th. Morgan Stanley assumed coverage on Hess Midstream Partners in a research note on Friday, July 25th. They issued an "equal weight" rating and a $48.00 price target on the stock. Finally, JPMorgan Chase & Co. lifted their price target on Hess Midstream Partners from $44.00 to $46.00 and gave the stock a "neutral" rating in a research note on Friday, August 22nd. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $45.17.

Hess Midstream Partners Price Performance

HESM traded up $0.16 during trading on Thursday, hitting $39.40. The company's stock had a trading volume of 401,137 shares, compared to its average volume of 1,328,413. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 7.26. Hess Midstream Partners has a twelve month low of $33.59 and a twelve month high of $44.14. The business's fifty day simple moving average is $40.58 and its 200 day simple moving average is $39.49. The firm has a market capitalization of $8.28 billion, a price-to-earnings ratio of 14.60 and a beta of 0.68.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.56 by $0.18. Hess Midstream Partners had a return on equity of 60.37% and a net margin of 18.52%.The company had revenue of $414.20 million for the quarter, compared to analyst estimates of $405.08 million. During the same period last year, the company earned $0.59 earnings per share. Hess Midstream Partners's quarterly revenue was up 13.3% compared to the same quarter last year. On average, equities research analysts forecast that Hess Midstream Partners will post 2.5 EPS for the current fiscal year.

Hess Midstream Partners Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Thursday, August 7th were given a dividend of $0.737 per share. The ex-dividend date was Thursday, August 7th. This is a positive change from Hess Midstream Partners's previous quarterly dividend of $0.71. This represents a $2.95 dividend on an annualized basis and a yield of 7.5%. Hess Midstream Partners's dividend payout ratio (DPR) is 108.89%.

Insider Buying and Selling

In related news, COO John A. Gatling sold 62,457 shares of Hess Midstream Partners stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $41.59, for a total transaction of $2,597,586.63. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink.

Institutional Investors Weigh In On Hess Midstream Partners

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Alps Advisors Inc. raised its position in Hess Midstream Partners by 31.1% in the first quarter. Alps Advisors Inc. now owns 26,356,221 shares of the company's stock valued at $1,114,605,000 after purchasing an additional 6,251,664 shares during the period. Goldman Sachs Group Inc. raised its position in Hess Midstream Partners by 10.0% in the first quarter. Goldman Sachs Group Inc. now owns 7,233,773 shares of the company's stock valued at $305,916,000 after purchasing an additional 655,062 shares during the period. Invesco Ltd. raised its position in Hess Midstream Partners by 50.5% in the second quarter. Invesco Ltd. now owns 6,022,208 shares of the company's stock valued at $231,915,000 after purchasing an additional 2,020,430 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Hess Midstream Partners by 9.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,503,752 shares of the company's stock valued at $232,754,000 after purchasing an additional 492,683 shares during the period. Finally, Kayne Anderson Capital Advisors LP raised its position in Hess Midstream Partners by 10.6% in the first quarter. Kayne Anderson Capital Advisors LP now owns 2,885,110 shares of the company's stock valued at $122,011,000 after purchasing an additional 276,779 shares during the period. Hedge funds and other institutional investors own 98.97% of the company's stock.

Hess Midstream Partners Company Profile

Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities.