Hess Midstream LP (NYSE:HESM) Plans Quarterly Dividend of $0.65

Hess Midstream LP (NYSE:HESM) declared a quarterly dividend on Monday, April 22nd, Wall Street Journal reports. Investors 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 7.47%. The ex-dividend date is Wednesday, May 1st. This is a positive change from Hess Midstream’s previous quarterly dividend of $0.63.

Hess Midstream has increased its dividend by an average of 11.0% annually over the last three years and has increased its dividend every year for the last 7 years. Hess Midstream has a dividend payout ratio of 78.6% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect Hess Midstream to earn $2.77 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 91.7%.

Hess Midstream Price Performance

Shares of NYSE HESM opened at $34.89 on Tuesday. Hess Midstream has a twelve month low of $26.86 and a twelve month high of $36.84. The firm has a fifty day simple moving average of $35.22 and a 200 day simple moving average of $32.90. The company has a market capitalization of $7.90 billion, a PE ratio of 15.79 and a beta of 1.50. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 8.81.

Hess Midstream (NYSE:HESM) last announced its earnings results on Wednesday, January 31st. The company reported $0.55 earnings per share for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.05). The firm had revenue of $356.50 million for the quarter, compared to the consensus estimate of $358.86 million. Hess Midstream had a return on equity of 34.38% and a net margin of 10.18%. Hess Midstream’s quarterly revenue was up 13.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.49 EPS. On average, sell-side analysts forecast that Hess Midstream will post 2.42 EPS for the current year.

Analyst Ratings Changes

A number of equities research analysts have commented on HESM shares. JPMorgan Chase & Co. raised their price target on shares of Hess Midstream from $37.00 to $38.00 and gave the stock a “neutral” rating in a report on Tuesday, April 16th. Wells Fargo & Company raised their price target on shares of Hess Midstream from $36.00 to $37.00 and gave the stock an “equal weight” rating in a report on Monday. Finally, UBS Group raised their price target on shares of Hess Midstream from $35.00 to $38.00 and gave the stock a “buy” rating in a report on Friday, March 1st. Three investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $36.50.

Insider Activity

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

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.