Fayez Sarofim & Co Buys New Shares in Hess Midstream Partners LP (NYSE:HESM)

Key Points

• Fayez Sarofim & Co recently invested $324,000 in Hess Midstream Partners LP by acquiring 7,650 shares in the first quarter.
• Insider activity saw Blackrock Portfolio Management sell over 15 million shares of Hess Midstream Partners, totaling approximately $553.7 million.
• The company announced an increase in its quarterly dividend to $0.737 per share, reflecting a 7.2% dividend yield.

Fayez Sarofim & Co purchased a new stake in Hess Midstream Partners LP (NYSE:HESM - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 7,650 shares of the company's stock, valued at approximately $324,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in HESM. Hsbc Holdings PLC acquired a new position in Hess Midstream Partners during the fourth quarter valued at approximately $525,000. Envestnet Asset Management Inc. raised its position in Hess Midstream Partners by 2.9% during the fourth quarter. Envestnet Asset Management Inc. now owns 120,180 shares of the company's stock valued at $4,450,000 after purchasing an additional 3,412 shares in the last quarter. Teacher Retirement System of Texas acquired a new position in Hess Midstream Partners during the first quarter valued at approximately $707,000. Northern Trust Corp raised its position in Hess Midstream Partners by 17.8% during the fourth quarter. Northern Trust Corp now owns 85,550 shares of the company's stock valued at $3,168,000 after purchasing an additional 12,939 shares in the last quarter. Finally, Financial Sense Advisors Inc. raised its position in Hess Midstream Partners by 151.8% during the first quarter. Financial Sense Advisors Inc. now owns 352,067 shares of the company's stock valued at $14,889,000 after purchasing an additional 212,266 shares in the last quarter. 98.97% of the stock is currently owned by institutional investors and hedge funds.

Hess Midstream Partners Price Performance

Shares of NYSE HESM traded up $0.57 during midday trading on Friday, reaching $41.59. 1,742,852 shares of the company were exchanged, compared to its average volume of 1,995,102. The stock's 50-day moving average price is $39.30 and its 200-day moving average price is $39.45. The stock has a market cap of $8.96 billion, a P/E ratio of 15.40 and a beta of 0.67. Hess Midstream Partners LP has a one year low of $33.59 and a one year high of $44.14. The company has a quick ratio of 0.81, a current ratio of 0.71 and a debt-to-equity ratio of 7.26.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $0.74 earnings per share for the quarter, topping analysts' consensus estimates of $0.56 by $0.18. The firm had revenue of $414.20 million for the quarter, compared to analysts' expectations of $405.08 million. Hess Midstream Partners had a net margin of 18.52% and a return on equity of 60.37%. The company's revenue was up 13.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.59 earnings per share. On average, sell-side analysts anticipate that Hess Midstream Partners LP will post 2.5 earnings per share for the current fiscal year.

Hess Midstream Partners Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Thursday, August 7th will be paid a dividend of $0.737 per share. The ex-dividend date of this dividend is Thursday, August 7th. This is a boost from Hess Midstream Partners's previous quarterly dividend of $0.71. This represents a $2.95 dividend on an annualized basis and a dividend yield of 7.1%. Hess Midstream Partners's payout ratio is presently 109.26%.

Insiders Place Their Bets

In related news, Director Geurt G. Schoonman sold 3,249 shares of the business's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $39.10, for a total value of $127,035.90. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, major shareholder Blackrock Portfolio Management sold 15,022,517 shares of the business's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $36.86, for a total transaction of $553,729,976.62. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Wall Street Zen upgraded shares of Hess Midstream Partners from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. Wells Fargo & Company boosted their price objective on shares of Hess Midstream Partners from $47.00 to $48.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, Morgan Stanley assumed coverage on shares of Hess Midstream Partners in a research report on Friday, July 25th. They set an "equal weight" rating and a $48.00 price objective for the company. Two research analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $45.80.

Hess Midstream Partners 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.