Hess Midstream Partners LP (NYSE:HESM) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Hess Midstream Partners LP has been rated as a "Moderate Buy" by five research firms, with two hold ratings and three buy ratings, and an average 12-month price target of $45.80.
• The company has reported earnings of $0.74 per share for the last quarter, surpassing analyst estimates, alongside a revenue increase of 13.3% year-over-year.
• Hess Midstream Partners announced an increase in its quarterly dividend to $0.737, representing an annualized yield of 6.9%, with a dividend payout ratio of 105.19%.

Shares of Hess Midstream Partners LP (NYSE:HESM - Get Free Report) have been given an average rating of "Moderate Buy" by the five research firms that are currently covering the company, Marketbeat reports. Two analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $45.80.

HESM has been the topic of a number of research analyst reports. Morgan Stanley assumed coverage on Hess Midstream Partners in a research note on Friday, July 25th. They issued an "equal weight" rating and a $48.00 target price on the stock. Wells Fargo & Company upped their price objective on Hess Midstream Partners from $47.00 to $48.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Wall Street Zen upgraded Hess Midstream Partners from a "hold" rating to a "buy" rating in a research report on Saturday.

Insider Transactions at Hess Midstream Partners

In related news, Director Geurt G. Schoonman sold 3,249 shares of the stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $39.10, for a total transaction of $127,035.90. The sale was disclosed in a legal 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 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 value of $553,729,976.62. The disclosure for this sale can be found here.

Institutional Trading of Hess Midstream Partners

A number of institutional investors have recently made changes to their positions in HESM. LPL Financial LLC increased its stake in shares of Hess Midstream Partners by 4.8% during the fourth quarter. LPL Financial LLC now owns 194,610 shares of the company's stock valued at $7,206,000 after buying an additional 8,942 shares during the period. JPMorgan Chase & Co. boosted its holdings in Hess Midstream Partners by 62.0% in the fourth quarter. JPMorgan Chase & Co. now owns 295,503 shares of the company's stock valued at $10,942,000 after acquiring an additional 113,080 shares in the last quarter. Norges Bank bought a new stake in Hess Midstream Partners in the fourth quarter valued at $7,069,000. Schroder Investment Management Group increased its position in Hess Midstream Partners by 26.9% during the 4th quarter. Schroder Investment Management Group now owns 398,339 shares of the company's stock valued at $14,743,000 after purchasing an additional 84,461 shares during the period. Finally, Alliancebernstein L.P. purchased a new position in Hess Midstream Partners during the 4th quarter valued at $1,944,000. Hedge funds and other institutional investors own 98.97% of the company's stock.

Hess Midstream Partners Price Performance

HESM traded down $1.02 on Friday, reaching $42.51. The company had a trading volume of 2,469,974 shares, compared to its average volume of 1,754,914. Hess Midstream Partners has a 52-week low of $33.59 and a 52-week high of $44.14. The company has a market cap of $9.16 billion, a price-to-earnings ratio of 15.74 and a beta of 0.67. The company has a debt-to-equity ratio of 6.92, a quick ratio of 0.81 and a current ratio of 0.81. The business has a 50 day simple moving average of $38.89 and a 200 day simple moving average of $39.41.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.74 EPS for the quarter, topping 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 61.46%. The firm had revenue of $414.20 million for the quarter, compared to analyst estimates of $405.08 million. During the same quarter in the prior year, the firm earned $0.59 EPS. The business's revenue for the quarter was up 13.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Hess Midstream Partners will post 2.5 EPS for the current year.

Hess Midstream Partners Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Thursday, August 7th will be given a dividend of $0.737 per share. The ex-dividend date is Thursday, August 7th. This is a positive change from Hess Midstream Partners's previous quarterly dividend of $0.71. This represents a $2.95 annualized dividend and a yield of 6.9%. Hess Midstream Partners's dividend payout ratio (DPR) is currently 108.89%.

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.