Hess Midstream LP (NYSE:HESM) Announces Dividend Increase – $0.71 Per Share

Hess Midstream LP (NYSE:HESM) announced a quarterly dividend on Tuesday, April 29th, Wall Street Journal reports. Stockholders of record on Thursday, May 8th will be paid a dividend of 0.7098 per share on Wednesday, May 14th. This represents a $2.84 annualized dividend and a dividend yield of 7.65%. The ex-dividend date of this dividend is Thursday, May 8th. This is a 1.2% increase from Hess Midstream’s previous quarterly dividend of $0.70.

Hess Midstream has increased its dividend payment by an average of 11.3% annually over the last three years. Hess Midstream has a dividend payout ratio of 83.6% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Analysts expect Hess Midstream to earn $2.93 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 95.6%.

Hess Midstream Stock Performance

HESM opened at $37.12 on Thursday. The firm has a market capitalization of $8.09 billion, a PE ratio of 14.91 and a beta of 1.14. Hess Midstream has a twelve month low of $32.75 and a twelve month high of $44.05. The firm’s 50-day moving average price is $39.74 and its 200 day moving average price is $38.35. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 7.85.

Hess Midstream (NYSE:HESM) last posted its earnings results on Wednesday, April 30th. The company reported $0.65 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.02. Hess Midstream had a net margin of 14.92% and a return on equity of 54.59%. The company had revenue of $382.00 million for the quarter, compared to analyst estimates of $384.28 million. During the same period in the previous year, the business posted $0.60 EPS. Hess Midstream’s revenue was up 7.4% on a year-over-year basis. As a group, sell-side analysts expect that Hess Midstream will post 2.5 EPS for the current fiscal year.

Insider Activity at Hess Midstream

In other Hess Midstream news, major shareholder Blackrock Portfolio Management sold 11,000,000 shares of Hess Midstream stock in a transaction dated Wednesday, February 12th. The stock was sold at an average price of $39.11, for a total transaction of $430,210,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Upgrades and Downgrades

Several research firms have issued reports on HESM. JPMorgan Chase & Co. raised their target price on Hess Midstream from $39.00 to $44.00 and gave the stock a “neutral” rating in a research note on Thursday, March 27th. Citigroup raised their target price on Hess Midstream from $41.00 to $44.00 and gave the stock a “buy” rating in a research note on Tuesday, February 18th. Raymond James raised their target price on Hess Midstream from $42.00 to $45.00 and gave the stock an “outperform” rating in a research note on Tuesday, January 28th. Finally, Wells Fargo & Company raised their target price on Hess Midstream from $40.00 to $42.00 and gave the stock an “equal weight” rating in a research note on Tuesday, February 4th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, Hess Midstream currently has a consensus rating of “Moderate Buy” and a consensus target price of $43.00.

About Hess Midstream

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.