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

Hess Midstream LP (NYSE:HESM) declared a quarterly dividend on Tuesday, April 23rd, Wall Street Journal reports. Shareholders of record on Thursday, May 2nd will be given 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 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% per year over the last three years and has raised its dividend every year for the last 7 years. Hess Midstream has a dividend 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. Research 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

NYSE HESM traded down $0.28 during trading on Tuesday, hitting $35.33. 819,608 shares of the stock traded hands, compared to its average volume of 894,747. The company has a market capitalization of $8.00 billion, a P/E ratio of 17.04 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. The firm has a 50-day simple moving average of $35.02 and a 200-day simple moving average of $32.69. Hess Midstream has a 12-month low of $26.86 and a 12-month high of $36.84.

Hess Midstream (NYSE:HESM) last issued 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). Hess Midstream had a net margin of 8.79% and a return on equity of 28.21%. The firm had revenue of $356.50 million for the quarter, compared to the consensus estimate of $358.86 million. During the same period last year, the firm earned $0.49 earnings per share. The company’s revenue for the quarter was up 13.3% on a year-over-year basis. As a group, analysts predict that Hess Midstream will post 2.54 EPS for the current year.

Insiders Place Their Bets

In related 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 filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on HESM. JPMorgan Chase & Co. raised their target price on Hess Midstream from $37.00 to $38.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 16th. UBS Group lifted their price target on 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 company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target 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.