Hess Midstream LP (NYSE:HESM) Plans Dividend Increase – $0.57 Per Share

Hess Midstream LP (NYSE:HESM – Get Rating) declared a quarterly dividend on Monday, January 23rd, Zacks reports. Stockholders of record on Thursday, February 2nd will be paid a dividend of 0.57 per share on Monday, February 13th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 7.35%. The ex-dividend date of this dividend is Wednesday, February 1st. This is an increase from Hess Midstream’s previous quarterly dividend of $0.56.

Hess Midstream has increased its dividend payment by an average of 11.8% per year over the last three years and has increased its dividend every year for the last 5 years. Hess Midstream has a dividend payout ratio of 84.9% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities analysts expect Hess Midstream to earn $2.23 per share next year, which means the company may not be able to cover its $2.25 annual dividend with an expected future payout ratio of 100.9%.

Hess Midstream Trading Down 2.6 %

Shares of HESM stock opened at $31.02 on Wednesday. Hess Midstream has a 12-month low of $24.33 and a 12-month high of $35.71. The company has a market cap of $1.36 billion, a price-to-earnings ratio of 15.68 and a beta of 1.62. The stock has a 50 day simple moving average of $30.05 and a 200-day simple moving average of $28.93.

Hess Midstream (NYSE:HESM – Get Rating) last released its quarterly earnings data on Wednesday, October 26th. The company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.02. The firm had revenue of $334.80 million during the quarter, compared to analysts’ expectations of $285.34 million. On average, equities analysts forecast that Hess Midstream will post 1.97 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts recently weighed in on HESM shares. Citigroup started coverage on Hess Midstream in a research note on Friday, December 9th. They issued a “buy” rating and a $34.00 price objective for the company. Morgan Stanley increased their target price on Hess Midstream from $34.00 to $35.00 and gave the company an “equal weight” rating in a report on Monday, January 9th.

Institutional Investors Weigh In On Hess Midstream

A number of large investors have recently bought and sold shares of HESM. Advisor Group Holdings Inc. grew its holdings in Hess Midstream by 43.0% during the 1st quarter. Advisor Group Holdings Inc. now owns 8,053 shares of the company’s stock valued at $241,000 after buying an additional 2,423 shares during the last quarter. Cambridge Investment Research Advisors Inc. acquired a new stake in shares of Hess Midstream during the first quarter worth $244,000. Cetera Advisor Networks LLC acquired a new stake in shares of Hess Midstream during the first quarter worth $445,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new stake in shares of Hess Midstream during the first quarter worth $1,556,000. Finally, BlackRock Inc. boosted its holdings in shares of Hess Midstream by 220.0% during the first quarter. BlackRock Inc. now owns 391,128 shares of the company’s stock worth $11,733,000 after purchasing an additional 268,914 shares during the last quarter. Institutional investors and hedge funds own 87.59% of the company’s stock.

About Hess Midstream

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Hess Midstream LP engages in the ownership, development, and acquisition of midstream assets to provide services to third-party crude oil and natural gas producers. It operates through the following segments: Gathering, Processing and Storage, and Terminaling and Export. The Gathering segment consists of natural gas and crude oil gathering and compression.