Hess Midstream LP (NYSE:HESM) to Issue Dividend Increase – $0.70 Per Share

Hess Midstream LP (NYSE:HESM) declared a quarterly dividend on Monday, January 27th,Wall Street Journal reports. Shareholders of record on Thursday, February 6th will be given a dividend of 0.7012 per share on Friday, February 14th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 6.85%. The ex-dividend date of this dividend is Thursday, February 6th. This is an increase from Hess Midstream’s previous quarterly dividend of $0.68.

Hess Midstream has raised its dividend by an average of 11.3% per year over the last three years. Hess Midstream has a payout ratio of 77.8% 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 $2.67 per share next year, which means the company may not be able to cover its $2.74 annual dividend with an expected future payout ratio of 102.6%.

Hess Midstream Stock Up 1.9 %

Shares of HESM opened at $40.97 on Wednesday. The company has a market capitalization of $8.93 billion, a price-to-earnings ratio of 17.36 and a beta of 1.52. Hess Midstream has a 52 week low of $32.15 and a 52 week high of $41.61. The stock’s 50-day moving average price is $37.81 and its 200-day moving average price is $36.73. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 7.85.

Hess Midstream (NYSE:HESM) last released its quarterly earnings results on Wednesday, October 30th. The company reported $0.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.05. The firm had revenue of $378.50 million for the quarter, compared to analysts’ expectations of $376.98 million. Hess Midstream had a net margin of 13.06% and a return on equity of 47.87%. The firm’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.57 EPS. On average, sell-side analysts predict that Hess Midstream will post 2.41 EPS for the current year.

Insider Transactions at Hess Midstream

In related news, CFO Jonathan C. Stein sold 7,923 shares of the stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $35.32, for a total transaction of $279,840.36. Following the transaction, the chief financial officer now directly owns 59,945 shares in the company, valued at approximately $2,117,257.40. This represents a 11.67 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Analysts Set New Price Targets

Separately, Raymond James lifted their price target on Hess Midstream from $42.00 to $45.00 and gave the stock an “outperform” rating in a report on Tuesday.

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.