Hess Midstream Partners LP (NYSE:HESM) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analyst consensus: Hold — Nine analysts average a "Hold" rating (eight holds, one buy) with a 12‑month target price of about $40.71.
• Dividend raised to $0.7641 quarterly (annualized $3.06), implying a ~7.7% yield, though the payout ratio is high at about 107%.
• Latest quarter: EPS of $0.72 matched estimates, but revenue of $374.5M missed expectations of $419.2M, despite modest year‑over‑year revenue growth.

Shares of Hess Midstream Partners LP (NYSE:HESM - Get Free Report) have been assigned an average recommendation of "Hold" from the nine analysts that are presently covering the stock, MarketBeat reports. Eight investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $40.7143.

A number of equities research analysts recently commented on HESM shares. Wells Fargo & Company increased their target price on shares of Hess Midstream Partners from $39.00 to $40.00 and gave the company an "equal weight" rating in a research report on Friday, March 13th. Weiss Ratings raised shares of Hess Midstream Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 2nd. Raymond James Financial cut shares of Hess Midstream Partners from an "outperform" rating to a "market perform" rating in a research report on Monday, January 5th. Finally, Zacks Research raised shares of Hess Midstream Partners from a "strong sell" rating to a "hold" rating in a research report on Monday, March 2nd.

Hess Midstream Partners Price Performance

Shares of HESM opened at $39.62 on Thursday. The company has a 50 day moving average price of $38.17 and a 200-day moving average price of $35.42. Hess Midstream Partners has a fifty-two week low of $31.63 and a fifty-two week high of $44.14. The stock has a market capitalization of $8.23 billion, a PE ratio of 13.85 and a beta of 0.58. The company has a debt-to-equity ratio of 8.54, a quick ratio of 0.85 and a current ratio of 0.85.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last announced its quarterly earnings results on Monday, February 2nd. The company reported $0.72 earnings per share for the quarter, hitting the consensus estimate of $0.72. Hess Midstream Partners had a net margin of 21.77% and a return on equity of 74.89%. The firm had revenue of $374.50 million during the quarter, compared to analysts' expectations of $419.16 million. During the same quarter in the prior year, the company earned $0.68 EPS. The company's revenue was up 2.1% compared to the same quarter last year. Equities analysts predict that Hess Midstream Partners will post 2.5 earnings per share for the current fiscal year.

Hess Midstream Partners Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Thursday, February 5th were given a dividend of $0.7641 per share. The ex-dividend date of this dividend was Thursday, February 5th. This is a positive change from Hess Midstream Partners's previous quarterly dividend of $0.75. This represents a $3.06 dividend on an annualized basis and a yield of 7.7%. Hess Midstream Partners's dividend payout ratio is currently 106.99%.

Institutional Investors Weigh In On Hess Midstream Partners

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Geneos Wealth Management Inc. raised its holdings in shares of Hess Midstream Partners by 14.3% in the second quarter. Geneos Wealth Management Inc. now owns 2,400 shares of the company's stock worth $92,000 after buying an additional 300 shares during the last quarter. Kestra Private Wealth Services LLC raised its holdings in shares of Hess Midstream Partners by 1.3% in the fourth quarter. Kestra Private Wealth Services LLC now owns 25,766 shares of the company's stock worth $889,000 after buying an additional 330 shares during the last quarter. Farther Finance Advisors LLC raised its holdings in shares of Hess Midstream Partners by 14.1% in the third quarter. Farther Finance Advisors LLC now owns 2,696 shares of the company's stock worth $93,000 after buying an additional 333 shares during the last quarter. Investment Management Corp VA ADV raised its holdings in shares of Hess Midstream Partners by 3.0% in the fourth quarter. Investment Management Corp VA ADV now owns 12,519 shares of the company's stock worth $432,000 after buying an additional 362 shares during the last quarter. Finally, Cetera Investment Advisers raised its holdings in shares of Hess Midstream Partners by 0.8% in the fourth quarter. Cetera Investment Advisers now owns 44,931 shares of the company's stock worth $1,550,000 after buying an additional 378 shares during the last quarter. Hedge funds and other institutional investors own 98.97% of the company's stock.

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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