Hess Midstream LP (NYSE:HESM) to Issue Dividend Increase – $0.68 Per Share

Hess Midstream LP (NYSE:HESM) declared a quarterly dividend on Monday, October 28th, NASDAQ reports. Stockholders of record on Thursday, November 7th will be given a dividend of 0.6846 per share on Thursday, November 14th. This represents a $2.74 dividend on an annualized basis and a dividend yield of 7.71%. The ex-dividend date of this dividend is Thursday, November 7th. This is an increase from Hess Midstream’s previous quarterly dividend of $0.67.

Hess Midstream has raised its dividend by an average of 11.0% per year over the last three years. Hess Midstream has a payout ratio of 85.1% meaning 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 $2.75 per share next year, which means the company should continue to be able to cover its $2.74 annual dividend with an expected future payout ratio of 99.6%.

Hess Midstream Stock Performance

Shares of HESM opened at $35.54 on Wednesday. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 8.55. The stock has a 50 day moving average price of $35.81 and a 200 day moving average price of $35.96. The company has a market capitalization of $7.85 billion, a price-to-earnings ratio of 14.70 and a beta of 1.51. Hess Midstream has a 52-week low of $29.20 and a 52-week high of $39.11.

Hess Midstream (NYSE:HESM) last released its quarterly earnings data on Wednesday, October 30th. The company reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.05. Hess Midstream had a net margin of 13.06% and a return on equity of 49.72%. The company had revenue of $378.50 million during the quarter, compared to the consensus estimate of $376.98 million. During the same quarter in the prior year, the firm posted $0.57 earnings per share. Hess Midstream’s revenue for the quarter was up 4.2% on a year-over-year basis. Research analysts predict that Hess Midstream will post 2.45 EPS for the current fiscal year.

Insider Buying and Selling at Hess Midstream

In other news, Director Infrastructure Investor Global sold 12,650,000 shares of the stock in a transaction dated Friday, September 20th. The shares were sold at an average price of $35.12, for a total transaction of $444,268,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. lifted their price target on Hess Midstream from $38.00 to $39.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 21st.

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.