Hess Midstream Partners LP (NYSE:HESM) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Analysts hold a cautious view: Nine brokerages assigned Hess Midstream Partners an average “Reduce” rating, with two sells, six holds and one buy. The average 12-month price target is $38.86, below the stock’s reported $40.54 price.
• Quarterly results exceeded expectations: Hess Midstream reported earnings of $0.75 per share versus the $0.67 consensus estimate and revenue of $399 million, although revenue declined 3.7% year over year.
• The dividend increased: The company declared a quarterly dividend of $0.7888, or $3.16 annualized, representing a 7.8% yield. Institutional investors and hedge funds own approximately 98.97% of the stock.

Shares of Hess Midstream Partners LP (NYSE:HESM - Get Free Report) have been given a consensus recommendation of "Reduce" by the nine analysts that are currently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, six have given a hold rating and one has given a buy rating to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $38.8571.

A number of equities analysts have recently issued reports on HESM shares. Morgan Stanley restated 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 restated a "buy (b)" rating on shares of Hess Midstream Partners in a research note on Wednesday, June 24th. Finally, The Goldman Sachs Group downgraded Hess Midstream Partners from a "neutral" rating to a "sell" rating and set a $32.00 price objective on the stock. in a report on Monday, April 20th.

Hess Midstream Partners Stock Down 0.2%

HESM stock opened at $40.54 on Wednesday. Hess Midstream Partners has a twelve month low of $31.63 and a twelve month high of $42.22. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 9.39. The company has a market cap of $8.36 billion, a PE ratio of 13.98 and a beta of 0.52. The business's 50-day simple moving average is $38.99 and its 200 day simple moving average is $38.49.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The company reported $0.75 EPS for the quarter, beating the consensus estimate of $0.67 by $0.08. The firm had revenue of $399.00 million during the quarter, compared to analysts' expectations of $395.96 million. Hess Midstream Partners had a return on equity of 92.18% and a net margin of 23.23%.The company's revenue for the quarter was down 3.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.74 EPS. On average, research analysts anticipate that Hess Midstream Partners will post 2.9 earnings per share for the current year.

Hess Midstream Partners Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Thursday, August 6th will be paid a $0.7888 dividend. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $3.16 annualized dividend and a yield of 7.8%. This is a positive change from Hess Midstream Partners's previous quarterly dividend of $0.78. Hess Midstream Partners's payout ratio is presently 108.62%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Adage Capital Partners GP L.L.C. acquired a new stake in Hess Midstream Partners during the 4th quarter valued at $92,288,000. Bank of New York Mellon Corp boosted its stake in Hess Midstream Partners by 67.5% in the first quarter. Bank of New York Mellon Corp now owns 3,752,002 shares of the company's stock worth $145,840,000 after purchasing an additional 1,512,007 shares in the last quarter. Alps Advisors Inc. grew its holdings in shares of Hess Midstream Partners by 3.4% during the fourth quarter. Alps Advisors Inc. now owns 30,303,091 shares of the company's stock worth $1,045,457,000 after purchasing an additional 1,007,846 shares during the last quarter. Lazard Asset Management LLC grew its holdings in shares of Hess Midstream Partners by 1,110.7% during the first quarter. Lazard Asset Management LLC now owns 1,069,244 shares of the company's stock worth $41,562,000 after purchasing an additional 980,929 shares during the last quarter. Finally, Balyasny Asset Management L.P. increased its stake in shares of Hess Midstream Partners by 179.8% in the second quarter. Balyasny Asset Management L.P. now owns 1,209,075 shares of the company's stock valued at $46,561,000 after buying an additional 776,924 shares in the last quarter. 98.97% of the stock is currently owned by institutional investors and hedge funds.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.

Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.

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