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 dividend yield of 7.38%. The ex-dividend date of this dividend is Wednesday, May 1st. This is a boost from Hess Midstream’s previous quarterly dividend of $0.63.

Hess Midstream has raised its dividend payment by an average of 11.0% annually over the last three years and has increased 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 tumble. 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

Shares of Hess Midstream stock opened at $35.32 on Wednesday. The business has a 50 day simple moving average of $35.07 and a two-hundred day simple moving average of $32.74. Hess Midstream has a 12 month low of $26.86 and a 12 month high of $36.84. The stock has a market capitalization of $7.99 billion, a P/E ratio of 16.90 and a beta of 1.50. The company has a debt-to-equity ratio of 8.81, a current ratio of 0.65 and a quick ratio of 0.65.

Hess Midstream (NYSE:HESM) last posted its quarterly earnings results on Wednesday, January 31st. The company reported $0.55 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 company had revenue of $356.50 million during the quarter, compared to analyst estimates of $358.86 million. During the same period in the prior year, the business posted $0.49 EPS. Hess Midstream’s revenue for the quarter was up 13.3% compared to the same quarter last year. As a group, analysts predict that Hess Midstream will post 2.54 EPS for the current fiscal year.

Insider Transactions at Hess Midstream

In related news, Director Infrastructure Investor Global sold 11,500,000 shares of the business’s 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 sale was disclosed in a legal filing with the SEC, which is available at the SEC website.

Analysts Set New Price Targets

A number of research firms recently issued reports on HESM. JPMorgan Chase & Co. lifted their target price on Hess Midstream from $37.00 to $38.00 and gave the company a “neutral” rating in a report on Tuesday, April 16th. UBS Group raised their price target on Hess Midstream from $35.00 to $38.00 and gave the company a “buy” rating in a research note on Friday, March 1st. Three analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $35.67.

Hess Midstream Company Profile

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.