Hess Midstream Partners (NYSE:HESM) Reaches New 52-Week Low - Should You Sell?

Key Points

• Hess Midstream Partners fell to a new 52-week low, trading as low as $29.83 and closing near $29.68, well below its 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the stock has an average “Reduce” rating, with one Buy, five Hold, and three Sell ratings. The average price target is $34.71 after several firms recently lowered their targets.
• The company reported quarterly earnings and revenue above expectations and raised its quarterly dividend to $0.7888, equivalent to a roughly 10.5% annual yield; however, its payout ratio exceeds 100% and revenue declined year over year.

Hess Midstream Partners LP (NYSE:HESM - Get Free Report)'s stock price hit a new 52-week low during trading on Thursday. The stock traded as low as $29.83 and last traded at $29.68, with a volume of 489,707 shares changing hands. The stock had previously closed at $31.07.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. UBS Group reduced their price objective on shares of Hess Midstream Partners from $37.00 to $34.00 and set a "neutral" rating on the stock in a research report on Tuesday, October 13th. Morgan Stanley dropped their target price on Hess Midstream Partners from $39.00 to $30.00 and set an "underweight" rating for the company in a research report on Tuesday, October 13th. JPMorgan Chase & Co. cut Hess Midstream Partners from a "neutral" rating to an "underweight" rating and set a $39.00 target price on the stock. in a research note on Friday, October 2nd. Weiss Ratings reiterated a "buy (b)" rating on shares of Hess Midstream Partners in a report on Monday, September 21st. Finally, Citigroup reduced their price target on Hess Midstream Partners from $37.00 to $33.00 and set a "neutral" rating on the stock in a report on Tuesday, October 13th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $34.71.

Hess Midstream Partners Price Performance

The stock has a market capitalization of $6.19 billion, a PE ratio of 10.35 and a beta of 0.58. 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 stock's 50 day moving average price is $37.70 and its 200-day moving average price is $38.46.

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, topping analysts' consensus estimates of $0.67 by $0.08. The firm had revenue of $399.00 million for the quarter, compared to analysts' expectations of $395.96 million. Hess Midstream Partners had a net margin of 23.23% and a return on equity of 92.18%. The business's revenue for the quarter was down 3.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.74 earnings per share. As a group, equities analysts forecast that Hess Midstream Partners LP will post 3.22 EPS for the current year.

Hess Midstream Partners Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Thursday, August 6th were given a $0.7888 dividend. This is a positive change from Hess Midstream Partners's previous quarterly dividend of $0.7792. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $3.16 annualized dividend and a yield of 10.5%. Hess Midstream Partners's dividend payout ratio is presently 108.97%.

Hedge Funds Weigh In On Hess Midstream Partners

A number of institutional investors have recently modified their holdings of HESM. Grove Bank & Trust bought a new stake in shares of Hess Midstream Partners during the second quarter valued at approximately $38,000. Caitong International Asset Management Co. Ltd bought a new position in Hess Midstream Partners in the fourth quarter worth approximately $44,000. Integrated Wealth Concepts LLC bought a new position in Hess Midstream Partners in the second quarter worth approximately $77,000. CENTRAL TRUST Co grew its stake in Hess Midstream Partners by 124.4% in the first quarter. CENTRAL TRUST Co now owns 2,165 shares of the company's stock worth $84,000 after purchasing an additional 1,200 shares in the last quarter. Finally, IFP Advisors Inc grew its stake in Hess Midstream Partners by 564.2% in the third quarter. IFP Advisors Inc now owns 2,557 shares of the company's stock worth $96,000 after purchasing an additional 2,172 shares in the last quarter. 98.97% of the stock is owned by hedge funds and other institutional investors.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP NYSE: HESM is a midstream energy company that owns and operates infrastructure supporting oil and gas production, primarily in the Bakken and Three Forks shale plays of North Dakota. The company provides essential services between the wellhead and downstream markets rather than exploring for or producing hydrocarbons itself.

Its operations include gathering, processing, storage and transportation services for crude oil, natural gas and natural gas liquids. Hess Midstream also provides produced-water gathering and disposal services, helping manage water generated during oil and gas production.

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