Hess Midstream LP (NYSE:HESM) Raises Dividend to $0.65 Per Share

Hess Midstream LP (NYSE:HESM) declared a quarterly dividend on Monday, April 22nd, Wall Street Journal reports. Shareholders of record on Thursday, May 2nd will be paid a dividend of 0.6516 per share on Tuesday, May 14th. This represents a $2.61 dividend on an annualized basis and a yield of 7.38%. The ex-dividend date is Wednesday, May 1st. This is an increase from Hess Midstream’s previous quarterly dividend of $0.63.

Hess Midstream has raised its dividend payment by an average of 11.0% per year over the last three years and has raised its dividend annually for the last 7 consecutive years. Hess Midstream has a payout ratio of 78.6% indicating that 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 $2.96 per share next year, which means the company should continue to be able to cover its $2.54 annual dividend with an expected future payout ratio of 85.8%.

Hess Midstream Price Performance

HESM opened at $35.32 on Wednesday. The company has a debt-to-equity ratio of 8.81, a quick ratio of 0.65 and a current ratio of 0.65. Hess Midstream has a 52-week low of $26.86 and a 52-week high of $36.84. The stock has a market capitalization of $7.99 billion, a PE ratio of 16.90 and a beta of 1.50. The stock’s 50 day moving average price is $35.07 and its 200-day moving average price is $32.74.

Hess Midstream (NYSE:HESM) last posted its earnings results on Wednesday, January 31st. The company reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.05). Hess Midstream had a net margin of 8.79% and a return on equity of 28.21%. The business had revenue of $356.50 million for the quarter, compared to analysts’ expectations of $358.86 million. During the same period last year, the firm posted $0.49 earnings per share. Hess Midstream’s quarterly revenue was up 13.3% on a year-over-year basis. On average, equities research analysts predict that Hess Midstream will post 2.54 EPS for the current year.

Insider Buying and Selling at Hess Midstream

In other Hess Midstream news, Director Infrastructure Investor Global sold 11,500,000 shares of the stock in a transaction dated Thursday, February 8th. The stock was sold at an average price of $32.83, for a total value of $377,545,000.00. The transaction was disclosed in a filing with the SEC, which is accessible through this link.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on HESM shares. UBS Group boosted their target price on Hess Midstream from $35.00 to $38.00 and gave the company a “buy” rating in a research note on Friday, March 1st. JPMorgan Chase & Co. upped their price target on Hess Midstream from $37.00 to $38.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 16th. Three research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $35.67.

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.