Hess Midstream Partners LP (NYSE:HESM) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Hess Midstream Partners LP (NYSE:HESM) has received an average analyst rating of “Moderate Buy”, with two analysts rating it as a hold and three as a buy.
• The company recently reported earnings of $0.74 per share for the last quarter, exceeding expectations and marking a 13.3% increase in revenue year-over-year.
• Hess Midstream Partners announced a quarterly dividend increase to $0.737 per share, leading to an annualized dividend yield of 7.1%.

Hess Midstream Partners LP (NYSE:HESM - Get Free Report) has earned an average recommendation of "Moderate Buy" from the five brokerages that are presently covering the company, MarketBeat reports. Two equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $46.20.

Several research firms have weighed in on HESM. JPMorgan Chase & Co. upped their price target on Hess Midstream Partners from $44.00 to $46.00 and gave the stock a "neutral" rating in a research note on Friday, August 22nd. Morgan Stanley assumed coverage on Hess Midstream Partners in a research report on Friday, July 25th. They set an "equal weight" rating and a $48.00 target price for the company. Wells Fargo & Company increased their target price on 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, Wall Street Zen upgraded Hess Midstream Partners from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd.

Insider Activity

In other news, COO John A. Gatling sold 62,457 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $41.59, for a total transaction of $2,597,586.63. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Blackrock Portfolio Management sold 15,022,517 shares of the stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $36.86, for a total value of $553,729,976.62. The disclosure for this sale can be found here. In the last ninety days, insiders sold 15,088,223 shares of company stock worth $556,454,599.

Institutional Trading of Hess Midstream Partners

Several hedge funds and other institutional investors have recently bought and sold shares of HESM. Alps Advisors Inc. raised its holdings in Hess Midstream Partners by 31.1% during the 1st quarter. Alps Advisors Inc. now owns 26,356,221 shares of the company's stock valued at $1,114,605,000 after buying an additional 6,251,664 shares during the period. Invesco Ltd. increased its stake in Hess Midstream Partners by 50.5% in the second quarter. Invesco Ltd. now owns 6,022,208 shares of the company's stock worth $231,915,000 after purchasing an additional 2,020,430 shares during the period. Artemis Investment Management LLP increased 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 valued at $83,288,000 after buying an additional 1,118,245 shares during the period. Westwood Holdings Group Inc. increased its stake in shares of Hess Midstream Partners by 92.4% during the second quarter. Westwood Holdings Group Inc. now owns 2,096,560 shares of the company's stock valued at $80,739,000 after buying an additional 1,006,998 shares during the period. Finally, Eagle Global Advisors LLC increased its stake in shares of Hess Midstream Partners by 53.7% during the second quarter. Eagle Global Advisors LLC now owns 2,453,834 shares of the company's stock valued at $94,497,000 after buying an additional 857,669 shares during the period. Hedge funds and other institutional investors own 98.97% of the company's stock.

Hess Midstream Partners Trading Up 0.8%

HESM stock opened at $41.45 on Wednesday. Hess Midstream Partners 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 company has a market capitalization of $8.71 billion, a price-to-earnings ratio of 15.35 and a beta of 0.67. The business has a 50 day simple moving average of $39.94 and a two-hundred day simple moving average of $39.47.

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 for the quarter, topping the consensus estimate of $0.56 by $0.18. Hess Midstream Partners had a return on equity of 60.37% and a net margin of 18.52%.The business had revenue of $414.20 million during the quarter, compared to the consensus estimate of $405.08 million. During the same period in the prior year, the company posted $0.59 EPS. The firm's revenue for the quarter was up 13.3% compared to the same quarter last year. Research analysts anticipate that Hess Midstream Partners will post 2.5 EPS for the current fiscal year.

Hess Midstream Partners Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Stockholders 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 dividend on an annualized basis 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 dividend payout ratio is currently 109.26%.

Hess Midstream Partners Company 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.

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