Investors Buy Hess (HES) on Weakness

Investors purchased shares of Hess Co. (NYSE:HES) on weakness during trading on Friday. $155.09 million flowed into the stock on the tick-up and $33.31 million flowed out of the stock on the tick-down, for a money net flow of $121.78 million into the stock. Of all companies tracked, Hess had the 26th highest net in-flow for the day. Hess traded down ($0.68) for the day and closed at $60.04

Several research analysts have weighed in on the stock. KLR Group downgraded shares of Hess from a “buy” rating to a “hold” rating and increased their price target for the stock from $63.00 to $64.00 in a research report on Thursday, April 26th. They noted that the move was a valuation call. Barclays raised their price objective on shares of Hess from $47.00 to $55.00 and gave the company an “equal weight” rating in a research report on Thursday, April 26th. Macquarie downgraded shares of Hess from an “outperform” rating to a “neutral” rating in a research report on Thursday, April 26th. They noted that the move was a valuation call. ValuEngine upgraded shares of Hess from a “hold” rating to a “buy” rating in a research report on Wednesday, May 2nd. Finally, Zacks Investment Research downgraded shares of Hess from a “buy” rating to a “hold” rating in a research report on Monday, April 30th. Three investment analysts have rated the stock with a sell rating, twelve have given a hold rating and four have assigned a buy rating to the company. Hess presently has a consensus rating of “Hold” and a consensus price target of $51.60.

The company has a market cap of $18.15 billion, a price-to-earnings ratio of -13.02 and a beta of 1.46. The company has a current ratio of 2.63, a quick ratio of 2.51 and a debt-to-equity ratio of 0.53.



Hess (NYSE:HES) last posted its earnings results on Wednesday, April 25th. The oil and gas producer reported ($0.27) earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.50) by $0.23. The company had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.23 billion. Hess had a negative net margin of 69.10% and a negative return on equity of 8.54%. Hess’s quarterly revenue was up 10.8% on a year-over-year basis. During the same period last year, the company posted ($1.07) earnings per share. analysts predict that Hess Co. will post -0.97 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Friday, June 29th. Investors of record on Monday, June 18th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, June 15th. This represents a $1.00 annualized dividend and a yield of 1.67%. Hess’s payout ratio is -21.69%.

Hess declared that its board has authorized a stock buyback plan on Thursday, March 8th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the oil and gas producer to purchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Commerce Bank grew its stake in Hess by 11.6% during the first quarter. Commerce Bank now owns 8,876 shares of the oil and gas producer’s stock valued at $450,000 after acquiring an additional 926 shares in the last quarter. First Republic Investment Management Inc. grew its stake in shares of Hess by 23.1% in the 1st quarter. First Republic Investment Management Inc. now owns 6,838 shares of the oil and gas producer’s stock worth $346,000 after buying an additional 1,282 shares in the last quarter. US Bancorp DE grew its stake in shares of Hess by 4.8% in the 4th quarter. US Bancorp DE now owns 31,294 shares of the oil and gas producer’s stock worth $1,485,000 after buying an additional 1,445 shares in the last quarter. Norinchukin Bank The grew its stake in shares of Hess by 7.4% in the 4th quarter. Norinchukin Bank The now owns 21,593 shares of the oil and gas producer’s stock worth $1,025,000 after buying an additional 1,479 shares in the last quarter. Finally, Meadow Creek Investment Management LLC grew its stake in shares of Hess by 9.3% in the 4th quarter. Meadow Creek Investment Management LLC now owns 17,578 shares of the oil and gas producer’s stock worth $834,000 after buying an additional 1,496 shares in the last quarter. 94.13% of the stock is owned by institutional investors.

About Hess

Hess Corporation, an exploration and production company, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. It operates through two segments, Exploration and Production, and Midstream. The company conducts production operations primarily in the United States, Denmark, the Malaysia/Thailand Joint Development Area, and Malaysia; and exploration activities primarily offshore Guyana, Suriname, Canada, and in the Gulf of Mexico.

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