Hess Midstream Partners (NYSE:HESM) Hits New 12-Month High After Better-Than-Expected Earnings

Key Points

• Hess Midstream Partners hit a new 52-week high of $44.14 after reporting better-than-expected quarterly earnings, with EPS of $0.74 beating estimates by $0.18.
• The company also announced a quarterly dividend increase to $0.737 per share, corresponding to an annualized yield of 6.73%.
• Analysts have a consensus rating of "Moderate Buy" for Hess Midstream Partners, with a price target averaging $45.60.

Hess Midstream Partners LP (NYSE:HESM - Get Free Report)'s stock price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $44.14 and last traded at $43.80, with a volume of 1294634 shares changing hands. The stock had previously closed at $42.68.

The company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.56 by $0.18. The business had revenue of $414.20 million during the quarter, compared to the consensus estimate of $405.08 million. Hess Midstream Partners had a net margin of 16.43% and a return on equity of 54.89%. The firm's revenue was up 13.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.59 EPS.

Hess Midstream Partners Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 14th. Stockholders of record on Thursday, August 7th will be paid a dividend of $0.737 per share. The ex-dividend date is Thursday, August 7th. This represents a $2.95 annualized dividend and a dividend yield of 6.73%. This is an increase from Hess Midstream Partners's previous quarterly dividend of $0.71. Hess Midstream Partners's dividend payout ratio (DPR) is presently 111.37%.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Morgan Stanley assumed coverage on shares of Hess Midstream Partners in a report on Friday, July 25th. They issued an "equal weight" rating and a $48.00 price target for the company. Wells Fargo & Company upgraded shares of Hess Midstream Partners from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $41.00 to $47.00 in a report on Friday, July 25th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $45.60.

Insiders Place Their Bets

In other news, major shareholder Blackrock Portfolio Management sold 15,022,517 shares of the company's 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 legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Geurt G. Schoonman sold 3,249 shares of the company's stock in a transaction dated 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.

Institutional Trading of Hess Midstream Partners

A number of institutional investors and hedge funds have recently bought and sold shares of the company. ProShare Advisors LLC grew its stake in shares of Hess Midstream Partners by 5.7% in the fourth quarter. ProShare Advisors LLC now owns 7,935 shares of the company's stock worth $294,000 after acquiring an additional 429 shares during the period. Virtus ETF Advisers LLC lifted its holdings in Hess Midstream Partners by 9.5% during the fourth quarter. Virtus ETF Advisers LLC now owns 4,972 shares of the company's stock valued at $184,000 after purchasing an additional 432 shares in the last quarter. WBI Investments LLC lifted its holdings in Hess Midstream Partners by 2.5% during the fourth quarter. WBI Investments LLC now owns 18,309 shares of the company's stock valued at $678,000 after purchasing an additional 446 shares in the last quarter. Leisure Capital Management lifted its holdings in Hess Midstream Partners by 2.0% during the first quarter. Leisure Capital Management now owns 26,681 shares of the company's stock valued at $1,128,000 after purchasing an additional 533 shares in the last quarter. Finally, Janney Montgomery Scott LLC lifted its holdings in Hess Midstream Partners by 4.1% during the first quarter. Janney Montgomery Scott LLC now owns 14,540 shares of the company's stock valued at $615,000 after purchasing an additional 570 shares in the last quarter. 98.97% of the stock is currently owned by institutional investors.

Hess Midstream Partners Price Performance

The firm's fifty day moving average price is $38.70 and its 200 day moving average price is $39.36. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 6.92. The stock has a market cap of $9.44 billion, a PE ratio of 17.16 and a beta of 0.63.

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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