Hess Midstream Partners (NYSE:HESM) Reaches New 12-Month Low - Time to Sell?

Key Points

• Hess Midstream Partners (NYSE:HESM) reached a new 52-week low at $31.65 during trading, with analysts maintaining a consensus rating of "Hold" and an average price target of $42.00.
• Despite the drop in stock price, Hess Midstream Partners reported a 13.3% increase in revenue year-over-year and exceeded earnings expectations with $0.74 EPS.
• The company recently increased its quarterly dividend to $0.737 per share, translating to an annual yield of 9.1%, although its dividend payout ratio stands at 108.89%.

Hess Midstream Partners LP (NYSE:HESM - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $31.65 and last traded at $31.97, with a volume of 207632 shares trading hands. The stock had previously closed at $31.74.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on HESM. Zacks Research upgraded shares of Hess Midstream Partners from a "hold" rating to a "strong-buy" rating in a report on Monday, September 29th. Wall Street Zen upgraded shares of Hess Midstream Partners from a "hold" rating to a "buy" rating in a report on Saturday, October 4th. JPMorgan Chase & Co. upped their price objective on shares of Hess Midstream Partners from $44.00 to $46.00 and gave the stock a "neutral" rating in a report on Friday, August 22nd. Citigroup cut their price objective on shares of Hess Midstream Partners from $41.00 to $37.00 and set a "neutral" rating on the stock in a report on Tuesday, September 23rd. Finally, UBS Group restated a "neutral" rating and set a $43.00 price objective (down previously from $45.00) on shares of Hess Midstream Partners in a research report on Wednesday, September 10th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $42.00.

Hess Midstream Partners Stock Up 1.6%

The company has a debt-to-equity ratio of 7.26, a current ratio of 0.71 and a quick ratio of 0.71. The firm has a market capitalization of $6.77 billion, a P/E ratio of 11.94 and a beta of 0.58. The company's 50-day simple moving average is $38.80 and its two-hundred day simple moving average is $38.59.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $0.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.56 by $0.18. The firm had revenue of $414.20 million during the quarter, compared to analysts' expectations of $405.08 million. Hess Midstream Partners had a net margin of 18.52% and a return on equity of 60.37%. The company's revenue for the quarter was up 13.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.59 earnings per share. As a group, research analysts expect that Hess Midstream Partners LP will post 2.5 earnings per share for the current year.

Hess Midstream Partners Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Thursday, August 7th were paid a dividend of $0.737 per share. This represents a $2.95 dividend on an annualized basis and a yield of 9.1%. The ex-dividend date was Thursday, August 7th. This is an increase from Hess Midstream Partners's previous quarterly dividend of $0.71. Hess Midstream Partners's dividend payout ratio (DPR) is currently 108.89%.

Insider Buying and Selling

In related news, COO John A. Gatling sold 62,457 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $41.59, for a total transaction of $2,597,586.63. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. A. D. Beadell Investment Counsel Inc. boosted its stake in Hess Midstream Partners by 24.7% during the third quarter. A. D. Beadell Investment Counsel Inc. now owns 36,050 shares of the company's stock valued at $1,245,000 after buying an additional 7,140 shares in the last quarter. IVC Wealth Advisors LLC boosted its stake in Hess Midstream Partners by 28.5% during the third quarter. IVC Wealth Advisors LLC now owns 8,446 shares of the company's stock valued at $292,000 after buying an additional 1,874 shares in the last quarter. U.S. Capital Wealth Advisors LLC boosted its stake in Hess Midstream Partners by 1.9% during the third quarter. U.S. Capital Wealth Advisors LLC now owns 48,038 shares of the company's stock valued at $1,660,000 after buying an additional 905 shares in the last quarter. Corient Private Wealth LLC boosted its stake in Hess Midstream Partners by 71.6% during the second quarter. Corient Private Wealth LLC now owns 16,513 shares of the company's stock valued at $636,000 after buying an additional 6,889 shares in the last quarter. Finally, Osaic Holdings Inc. boosted its stake in Hess Midstream Partners by 17.6% during the second quarter. Osaic Holdings Inc. now owns 115,939 shares of the company's stock valued at $4,465,000 after buying an additional 17,314 shares in the last quarter. Institutional investors own 98.97% of the company's stock.

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.

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