Hess Midstream Partners (NYSE:HESM) Shares Gap Down - Here's What Happened

Key Points

• Hess Midstream Partners shares fell sharply, opening at $36.05 after closing at $38.69 and later trading around $32.62, down 15.6%.
• Analyst sentiment is cautious: JPMorgan downgraded the stock to “underweight,” while the overall consensus rating is “Reduce” with an average price target of $37.00.
• The company exceeded quarterly EPS and revenue estimates and raised its quarterly dividend to $0.7888, implying an annualized yield of about 9.7%; however, revenue declined 3.7% year over year and the payout ratio exceeded 100%.

Shares of Hess Midstream Partners LP (NYSE:HESM - Get Free Report) gapped down prior to trading on Wednesday. The stock had previously closed at $38.69, but opened at $36.05. Hess Midstream Partners shares last traded at $32.6170, with a volume of 2,488,400 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on HESM. JPMorgan Chase & Co. lowered shares of Hess Midstream Partners from a "neutral" rating to an "underweight" rating and set a $39.00 target price on the stock. in a research report on Friday, October 2nd. Morgan Stanley reaffirmed an "underweight" rating and set a $39.00 price objective on shares of Hess Midstream Partners in a report on Tuesday, July 21st. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Hess Midstream Partners in a research note on Monday, September 21st. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $37.00.

Hess Midstream Partners Trading Down 15.6%

The company's fifty day moving average price is $39.64 and its two-hundred day moving average price is $39.08. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 9.39. The firm has a market cap of $6.73 billion, a P/E ratio of 11.20 and a beta of 0.58.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The company reported $0.75 earnings per share (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 the consensus estimate of $395.96 million. Hess Midstream Partners had a net margin of 23.23% and a return on equity of 92.18%. The firm's quarterly revenue was down 3.7% on a year-over-year basis. During the same period last year, the firm posted $0.74 EPS. As a group, sell-side analysts predict that Hess Midstream Partners LP will post 2.94 EPS for the current fiscal year.

Hess Midstream Partners Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Thursday, August 6th were paid a $0.7888 dividend. This represents a $3.16 dividend on an annualized basis and a dividend yield of 9.7%. This is an increase from Hess Midstream Partners's previous quarterly dividend of $0.7792. The ex-dividend date was Thursday, August 6th. Hess Midstream Partners's dividend payout ratio is presently 108.97%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of HESM. Envestnet Asset Management Inc. grew its position in Hess Midstream Partners by 0.8% during the 2nd quarter. Envestnet Asset Management Inc. now owns 147,778 shares of the company's stock worth $5,556,000 after acquiring an additional 1,203 shares during the last quarter. State Street Corp boosted its stake in Hess Midstream Partners by 38.0% in the second quarter. State Street Corp now owns 365,577 shares of the company's stock worth $13,746,000 after purchasing an additional 100,611 shares in the last quarter. Tidal Investments LLC boosted its stake in Hess Midstream Partners by 37.2% in the second quarter. Tidal Investments LLC now owns 7,881 shares of the company's stock worth $296,000 after purchasing an additional 2,138 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Hess Midstream Partners during the second quarter worth $77,000. Finally, Squarepoint Ops LLC grew its holdings in shares of Hess Midstream Partners by 419.8% during the second quarter. Squarepoint Ops LLC now owns 106,871 shares of the company's stock worth $4,018,000 after purchasing an additional 86,309 shares during the last quarter. 98.97% of the stock is owned by institutional investors and hedge funds.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP NYSE: HESM is a fee-based midstream energy company that owns and operates infrastructure supporting crude oil, natural gas and produced-water production in the Bakken Shale of North Dakota. The partnership primarily serves Hess Corp. and other producers operating in the region.

Its assets include systems for gathering and processing natural gas, gathering and transporting crude oil, and handling and disposing of produced water. Hess Midstream also provides storage, terminal and transportation services, helping connect production sites with downstream pipelines, rail facilities and other market outlets.

The company was formed to own midstream assets previously developed or operated by Hess and began trading publicly in 2017.

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