Hsbc Holdings PLC Takes Position in Hess Midstream Partners LP $HESM

Key Points

• HSBC Holdings acquired 109,596 shares of Hess Midstream Partners in the second quarter, valued at approximately $4.14 million. Institutional investors collectively own 98.97% of the company.
• Hess Midstream exceeded quarterly expectations, reporting earnings of $0.75 per share versus the $0.67 consensus estimate, while revenue reached $399 million. However, revenue declined 3.7% year over year.
• The partnership raised its quarterly dividend to $0.7888 per share, implying an annualized yield of about 7.8%. Analysts remain cautious, with an average “Reduce” rating and a $36.60 price target compared with the reported share price of $40.20.

Hsbc Holdings PLC acquired a new stake in shares of Hess Midstream Partners LP (NYSE:HESM - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 109,596 shares of the company's stock, valued at approximately $4,139,000. Hsbc Holdings PLC owned about 0.05% of Hess Midstream Partners at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Royal Bank of Canada raised its holdings 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 buying an additional 32,740 shares in the last quarter. NewEdge Advisors LLC bought a new stake in shares of Hess Midstream Partners during the 1st quarter worth about $235,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Hess Midstream Partners by 20.2% during the 1st 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 acquiring an additional 37,794 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Hess Midstream Partners by 21.6% during the 2nd quarter. Geode Capital Management LLC now owns 5,778 shares of the company's stock worth $223,000 after acquiring an additional 1,026 shares in the last quarter. Finally, Creative Planning increased 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 acquiring an additional 826 shares during the last quarter. Hedge funds and other institutional investors own 98.97% of the company's stock.

Hess Midstream Partners Price Performance

Shares of NYSE:HESM opened at $40.20 on Friday. The business's 50 day moving average is $39.89 and its 200-day moving average is $39.08. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 9.39. The firm has a market capitalization of $8.29 billion, a PE ratio of 13.86 and a beta of 0.52. Hess Midstream Partners LP has a 1-year low of $31.63 and a 1-year high of $41.44.

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

Hess Midstream Partners Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Thursday, August 6th were given a dividend of $0.7888 per share. This is an increase from Hess Midstream Partners's previous quarterly dividend of $0.78. The ex-dividend date was Thursday, August 6th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 7.8%. Hess Midstream Partners's dividend payout ratio is 108.97%.

Analyst Upgrades and Downgrades

HESM has been the topic of a number of recent analyst reports. Morgan Stanley reissued an "underweight" rating and issued a $39.00 price objective on shares of Hess Midstream Partners in a research note on Tuesday, July 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of Hess Midstream Partners in a report on Wednesday, June 24th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Hess Midstream Partners currently has an average rating of "Reduce" and an average price target of $36.60.

Hess Midstream Partners Profile

Hess Midstream Partners LP NYSE: HESM is a fee-based, publicly traded midstream energy company that provides infrastructure and logistics services for crude oil, natural gas and produced water. The partnership's operations are primarily supported by long-term commercial agreements with Hess and other customers.

The company owns and operates midstream assets in the Bakken and Three Forks shale plays of North Dakota. Its services include gathering crude oil and natural gas from producing wells, processing and compressing natural gas, gathering and disposing of produced water, and providing storage, terminaling and transportation services.

Hess Midstream's infrastructure includes gathering systems, natural gas processing facilities, crude oil and natural gas storage assets, rail and pipeline connections, and water-handling facilities.

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