Hess Midstream Partners LP (NYSE:HESM) Stock Now Rated "Reduce" by Sell-Side Analysts

Key Points

• Analysts rate Hess Midstream Partners “Reduce.” Of six covering analysts, two recommend selling, three rate it a hold and one recommends buying; the average 12-month price target is $36.50 versus the reported $37.40 share price.
• Institutional ownership remains very high at 98.97%. Several funds increased their positions during the second quarter, including State Street, Tidal Investments and Squarepoint Ops.
• The company beat quarterly earnings expectations with $0.75 EPS versus a $0.67 estimate, although revenue fell 3.7% year over year. Hess Midstream also raised its quarterly dividend to $0.7888, implying an annualized yield of approximately 8.4%.

Shares of Hess Midstream Partners LP (NYSE:HESM - Get Free Report) have earned a consensus rating of "Reduce" from the six analysts that are currently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $36.50.

Several analysts have recently commented on the stock. Morgan Stanley reiterated an "underweight" rating and issued a $39.00 price target on shares of Hess Midstream Partners in a research report on Tuesday, July 21st. Weiss Ratings restated a "buy (b)" rating on shares of Hess Midstream Partners in a research report on Monday, September 21st.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HESM. Envestnet Asset Management Inc. raised its position in shares of Hess Midstream Partners by 0.8% in the second quarter. Envestnet Asset Management Inc. now owns 147,778 shares of the company's stock valued at $5,556,000 after buying an additional 1,203 shares during the last quarter. State Street Corp boosted its position in Hess Midstream Partners by 38.0% during the second quarter. State Street Corp now owns 365,577 shares of the company's stock worth $13,746,000 after acquiring an additional 100,611 shares during the last quarter. Tidal Investments LLC grew its stake in Hess Midstream Partners by 37.2% in the 2nd quarter. Tidal Investments LLC now owns 7,881 shares of the company's stock worth $296,000 after acquiring an additional 2,138 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in Hess Midstream Partners in the 2nd quarter worth approximately $77,000. Finally, Squarepoint Ops LLC raised its holdings in Hess Midstream Partners by 419.8% in the 2nd quarter. Squarepoint Ops LLC now owns 106,871 shares of the company's stock valued at $4,018,000 after acquiring an additional 86,309 shares during the last quarter. 98.97% of the stock is currently owned by hedge funds and other institutional investors.

Hess Midstream Partners Price Performance

Shares of NYSE HESM opened at $37.40 on Thursday. The stock has a market cap of $7.71 billion, a price-to-earnings ratio of 12.90 and a beta of 0.52. Hess Midstream Partners has a 52 week low of $31.63 and a 52 week high of $41.44. The company's 50-day moving average price is $39.80 and its 200 day moving average price is $39.11. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 9.39.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last posted its earnings results on Monday, August 3rd. The company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.08. The firm had revenue of $399.00 million during the quarter, compared to the consensus estimate of $395.96 million. Hess Midstream Partners had a net margin of 23.23% and a return on equity of 92.18%. The firm's revenue for the quarter was down 3.7% on a year-over-year basis. During the same period last year, the firm posted $0.74 EPS. As a group, research analysts forecast that Hess Midstream Partners will post 2.94 earnings per share for the current fiscal year.

Hess Midstream Partners Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Thursday, August 6th were issued a $0.7888 dividend. This represents a $3.16 dividend on an annualized basis and a dividend yield of 8.4%. This is a positive change from Hess Midstream Partners's previous quarterly dividend of $0.7792. The ex-dividend date of this dividend was Thursday, August 6th. Hess Midstream Partners's payout ratio is presently 108.97%.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP NYSE: HESM is a fee-based midstream energy company that owns and operates infrastructure supporting crude oil, natural gas and produced-water production in the Bakken Shale of North Dakota. The partnership primarily serves Hess Corp. and other producers operating in the region.

Its assets include systems for gathering and processing natural gas, gathering and transporting crude oil, and handling and disposing of produced water. Hess Midstream also provides storage, terminal and transportation services, helping connect production sites with downstream pipelines, rail facilities and other market outlets.

The company was formed to own midstream assets previously developed or operated by Hess and began trading publicly in 2017.

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