Hess Midstream Partners LP (NYSE:HESM) Raises Dividend to $0.74 Per Share

Key Points

• Hess Midstream Partners has increased its quarterly dividend to $0.74 per share, reflecting a 3.8% rise from the previous dividend of $0.71, resulting in an annualized dividend of $2.95 with a yield of 7.14%.
• The company reported a net margin of 16.43% and earnings of $0.65 EPS for the last quarter, exceeding analysts' expectations by $0.02.
• Analysts maintain a consensus rating of "Moderate Buy" for Hess Midstream Partners, with a target price of approximately $45.60.

Hess Midstream Partners LP (NYSE:HESM - Get Free Report) announced a quarterly dividend on Tuesday, July 29th, Wall Street Journal reports. Stockholders of record on Thursday, August 7th will be paid a dividend of 0.737 per share on Thursday, August 14th. This represents a $2.95 dividend on an annualized basis and a dividend yield of 7.14%. The ex-dividend date of this dividend is Thursday, August 7th. This is a 3.8% increase from Hess Midstream Partners's previous quarterly dividend of $0.71.

Hess Midstream Partners has a dividend payout ratio of 87.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect Hess Midstream Partners to earn $2.93 per share next year, which means the company should continue to be able to cover its $2.84 annual dividend with an expected future payout ratio of 96.9%.

Hess Midstream Partners Stock Performance

Shares of NYSE:HESM traded up $0.96 on Tuesday, reaching $41.30. The company's stock had a trading volume of 1,815,529 shares, compared to its average volume of 1,288,893. The stock's 50-day moving average is $38.56 and its two-hundred day moving average is $39.33. Hess Midstream Partners has a 52-week low of $33.59 and a 52-week high of $44.05. The company has a debt-to-equity ratio of 6.92, a current ratio of 0.81 and a quick ratio of 0.81. The stock has a market capitalization of $8.90 billion, a P/E ratio of 16.19 and a beta of 0.63.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last announced its earnings results on Wednesday, April 30th. The company reported $0.65 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.02. Hess Midstream Partners had a net margin of 16.43% and a return on equity of 54.89%. The business had revenue of $382.00 million during the quarter, compared to analysts' expectations of $384.28 million. During the same period in the prior year, the company earned $0.60 earnings per share. The business's revenue was up 7.4% compared to the same quarter last year. As a group, sell-side analysts forecast that Hess Midstream Partners will post 2.5 EPS for the current year.

Analyst Ratings Changes

Several research analysts have weighed in on HESM shares. Morgan Stanley started coverage on shares of Hess Midstream Partners in a research report on Friday. They set an "equal weight" rating and a $48.00 target price on the stock. Wells Fargo & Company upgraded shares of Hess Midstream Partners from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $41.00 to $47.00 in a research report on Friday. Two research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat, Hess Midstream Partners presently has a consensus rating of "Moderate Buy" and a consensus target price of $45.60.

Insider Buying and Selling

In other Hess Midstream Partners news, major shareholder Blackrock Portfolio Management sold 15,022,517 shares of Hess Midstream Partners stock in a transaction 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 sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Geurt G. Schoonman sold 3,249 shares of Hess Midstream Partners stock in a transaction on Monday, June 9th. The shares were sold at an average price of $39.10, for a total transaction of $127,035.90. The disclosure for this sale can be found here.

Hedge Funds Weigh In On Hess Midstream Partners

Hedge funds have recently made changes to their positions in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Hess Midstream Partners by 20.2% in 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 valued at $9,504,000 after acquiring an additional 37,794 shares during the period. Royal Bank of Canada raised its stake in shares of Hess Midstream Partners by 33.7% in the 1st quarter. Royal Bank of Canada now owns 129,902 shares of the company's stock valued at $5,494,000 after acquiring an additional 32,740 shares during the period. Finally, NewEdge Advisors LLC purchased a new position in shares of Hess Midstream Partners in the 1st quarter valued at $235,000. Institutional investors and hedge funds own 98.97% of the company's stock.

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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