Bank of America Corp DE Lowers Stake in Hess Midstream Partners LP $HESM

Key Points

• Bank of America cut its Hess Midstream Partners stake by 51.3% in the first quarter, selling 339,333 shares and retaining 321,530 shares valued at approximately $12.5 million. Institutional investors still own 98.97% of the company.
• Analyst sentiment remains cautious, with one Buy, five Hold and two Sell ratings producing an average “Reduce” recommendation and a $37.67 price target, below the stock’s $39.13 opening price.
• Hess Midstream exceeded quarterly earnings expectations, reporting $0.75 in EPS versus a $0.67 estimate and $399 million in revenue. The partnership raised its quarterly dividend to $0.7888, implying an annualized yield of about 8.1%.

Bank of America Corp DE lessened its stake in Hess Midstream Partners LP (NYSE:HESM - Free Report) by 51.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 321,530 shares of the company's stock after selling 339,333 shares during the period. Bank of America Corp DE owned 0.16% of Hess Midstream Partners worth $12,498,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in HESM. Royal Bank of Canada lifted its position in Hess Midstream Partners by 33.7% during the first quarter. Royal Bank of Canada now owns 129,902 shares of the company's stock valued at $5,494,000 after acquiring an additional 32,740 shares during the last quarter. NewEdge Advisors LLC purchased a new position in Hess Midstream Partners in the first quarter worth $235,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Hess Midstream Partners by 20.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 224,741 shares of the company's stock worth $9,504,000 after purchasing an additional 37,794 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Hess Midstream Partners by 21.6% during the second quarter. Geode Capital Management LLC now owns 5,778 shares of the company's stock worth $223,000 after purchasing an additional 1,026 shares in the last quarter. Finally, Creative Planning lifted its holdings in shares of Hess Midstream Partners by 10.6% during the 2nd quarter. Creative Planning now owns 8,596 shares of the company's stock valued at $331,000 after purchasing an additional 826 shares during the last quarter. Institutional investors own 98.97% of the company's stock.

Analysts Set New Price Targets

HESM has been the subject of several recent analyst reports. Morgan Stanley reissued an "underweight" rating and issued a $39.00 price target on shares of Hess Midstream Partners in a report on Tuesday, July 21st. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Hess Midstream Partners in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Hess Midstream Partners presently has an average rating of "Reduce" and an average target price of $37.67.

Hess Midstream Partners Stock Performance

NYSE HESM opened at $39.13 on Friday. The firm has a market capitalization of $8.07 billion, a P/E ratio of 13.49 and a beta of 0.52. The stock has a 50-day simple moving average of $39.17 and a two-hundred day simple moving average of $38.71. The company has a debt-to-equity ratio of 9.39, a quick ratio of 0.77 and a current ratio of 0.77. Hess Midstream Partners LP has a fifty-two week low of $31.63 and a fifty-two week high of $41.80.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The company reported $0.75 EPS for the quarter, topping the consensus estimate of $0.67 by $0.08. The company had revenue of $399.00 million during the quarter, compared to analyst estimates of $395.96 million. Hess Midstream Partners had a return on equity of 92.18% and a net margin of 23.23%.Hess Midstream Partners's quarterly revenue was down 3.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.74 EPS. On average, equities analysts forecast that Hess Midstream Partners LP will post 2.94 earnings per share for the current year.

Hess Midstream Partners Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Thursday, August 6th were paid a $0.7888 dividend. This is a boost from Hess Midstream Partners's previous quarterly dividend of $0.78. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $3.16 annualized dividend and a dividend yield of 8.1%. Hess Midstream Partners's dividend payout ratio is currently 108.97%.

Hess Midstream Partners Profile

Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.

Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.

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