Hess Midstream Partners LP $HESM is Tortoise Capital Advisors L.L.C.'s 10th Largest Position

Key Points

• Tortoise Capital Advisors L.L.C. has reduced its stake in Hess Midstream Partners by 3.4%, holding approximately 3.7% of the company's stock after selling over 254,000 shares.
• Hess Midstream Partners increased its quarterly dividend to $0.737, representing a 7.1% yield, as its annualized dividend payout raises concerns with a payout ratio of 108.89%.
• Analysts have upgraded Hess Midstream Partners from a "hold" to a "buy" rating, with an average price target now set at $45.80, following positive earnings that exceeded expectations.

Tortoise Capital Advisors L.L.C. lessened its stake in Hess Midstream Partners LP (NYSE:HESM - Free Report) by 3.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,326,845 shares of the company's stock after selling 254,261 shares during the period. Hess Midstream Partners accounts for approximately 3.7% of Tortoise Capital Advisors L.L.C.'s portfolio, making the stock its 10th largest position. Tortoise Capital Advisors L.L.C. owned approximately 3.36% of Hess Midstream Partners worth $309,852,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the stock. Alps Advisors Inc. boosted its stake 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 acquiring an additional 6,251,664 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Hess Midstream Partners by 11.0% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,011,069 shares of the company's stock worth $185,560,000 after buying an additional 496,464 shares during the period. Kayne Anderson Capital Advisors LP boosted its stake in shares of Hess Midstream Partners by 10.6% during the first quarter. Kayne Anderson Capital Advisors LP now owns 2,885,110 shares of the company's stock worth $122,011,000 after buying an additional 276,779 shares during the period. Artemis Investment Management LLP boosted its stake in shares of Hess Midstream Partners by 131.4% during the first quarter. Artemis Investment Management LLP now owns 1,969,448 shares of the company's stock worth $83,288,000 after buying an additional 1,118,245 shares during the period. Finally, CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT boosted its stake in shares of Hess Midstream Partners by 41.0% during the first quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,825,485 shares of the company's stock worth $77,200,000 after buying an additional 530,626 shares during the period. Institutional investors and hedge funds own 98.97% of the company's stock.

Hess Midstream Partners Price Performance

Shares of HESM stock traded up $0.28 during midday trading on Wednesday, reaching $41.70. 368,516 shares of the company traded hands, compared to its average volume of 1,331,123. The firm's 50 day simple moving average is $39.94 and its two-hundred day simple moving average is $39.47. Hess Midstream Partners LP has a 1-year low of $33.59 and a 1-year high of $44.14. The company has a debt-to-equity ratio of 7.26, a current ratio of 0.71 and a quick ratio of 0.71. The firm has a market cap of $8.76 billion, a PE ratio of 15.44 and a beta of 0.67.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.18. Hess Midstream Partners had a net margin of 18.52% and a return on equity of 60.37%. The company had revenue of $414.20 million during the quarter, compared to the consensus estimate of $405.08 million. During the same period last year, the firm earned $0.59 EPS. The company's revenue for the quarter was up 13.3% on a year-over-year basis. On average, equities research analysts expect that Hess Midstream Partners LP 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 represents a $2.95 annualized dividend and a dividend yield of 7.1%. This is an increase from Hess Midstream Partners's previous quarterly dividend of $0.71. Hess Midstream Partners's payout ratio is presently 109.26%.

Insider Buying and Selling

In related news, major shareholder Blackrock Portfolio Management sold 15,022,517 shares of Hess Midstream Partners stock in a transaction that occurred 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 value of $2,597,586.63. The disclosure for this sale can be found here. Insiders sold 15,088,223 shares of company stock worth $556,454,599 in the last ninety days.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on HESM. Wells Fargo & Company increased their target price on shares of Hess Midstream Partners from $47.00 to $48.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Wall Street Zen upgraded shares of Hess Midstream Partners from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. Morgan Stanley initiated coverage on shares of Hess Midstream Partners in a research report on Friday, July 25th. They issued an "equal weight" rating and a $48.00 price objective for the company. Finally, JPMorgan Chase & Co. raised their price objective on shares of Hess Midstream Partners from $44.00 to $46.00 and gave the company a "neutral" rating in a research report on Friday, August 22nd. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $46.20.

About Hess Midstream Partners

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.