Hess (NYSE:HES) Downgraded by Zacks Investment Research to “Hold”

Hess (NYSE:HES) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday, Zacks.com reports. They presently have a $50.00 price target on the oil and gas producer’s stock. Zacks Investment Research‘s price target suggests a potential upside of 1.61% from the company’s current price.

According to Zacks, “Hess is a leading global integrated energy company. Notably, it has made world-class oil discoveries at the Stabroek Block, which is located off the coast of Guyana. It estimates gross resources of more than 8 billion Boe from its 16 promising discoveries in the block. Notably, despite delays in operations owing to the coronavirus pandemic, the company expects its Liza Phase 2 development to remain on schedule and commence production in 2022. The company recently reported narrower-than-expected loss in Q2 owing to higher oil equivalent production from the Bakken play and increased throughput volumes. This was partially offset by lower commodity price realizations and increased operating expenses. Moreover, the company’s significant debt exposure can affect financial flexibility. As such, the stock warrants a cautious stance.”

A number of other equities analysts also recently issued reports on the company. Citigroup upgraded Hess from a “neutral” rating to a “buy” rating and lifted their price target for the company from $46.00 to $60.00 in a research note on Tuesday, June 2nd. Susquehanna Bancshares raised their price target on shares of Hess from $45.00 to $54.00 in a research report on Friday, May 8th. Raymond James upped their price objective on shares of Hess from $52.00 to $55.00 and gave the stock an “outperform” rating in a research report on Monday, July 20th. UBS Group increased their price target on Hess from $37.00 to $49.00 and gave the company a “neutral” rating in a research report on Monday, June 29th. Finally, ValuEngine raised Hess from a “hold” rating to a “buy” rating in a research report on Friday, May 1st. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and sixteen have issued a buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $59.00.

Hess stock opened at $49.21 on Friday. Hess has a 12-month low of $26.06 and a 12-month high of $74.11. The firm’s fifty day moving average is $49.42 and its 200 day moving average is $49.13. The company has a current ratio of 2.19, a quick ratio of 2.07 and a debt-to-equity ratio of 1.19.

Hess (NYSE:HES) last posted its quarterly earnings results on Wednesday, July 29th. The oil and gas producer reported ($1.05) earnings per share for the quarter, beating the consensus estimate of ($1.14) by $0.09. The firm had revenue of $842.00 million during the quarter, compared to the consensus estimate of $996.22 million. Hess had a negative net margin of 58.62% and a negative return on equity of 8.81%. The business’s revenue was down 50.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.09) earnings per share. As a group, equities research analysts predict that Hess will post -1.66 EPS for the current fiscal year.

In other news, COO Gregory P. Hill sold 19,500 shares of Hess stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $51.68, for a total transaction of $1,007,760.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Andrew P. Slentz sold 4,200 shares of the business’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $57.58, for a total value of $241,836.00. The disclosure for this sale can be found here. 12.22% of the stock is owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in the business. First Bank & Trust bought a new position in shares of Hess in the 1st quarter worth $25,000. Royal Fund Management LLC bought a new position in shares of Hess during the 1st quarter valued at about $26,000. Founders Capital Management raised its holdings in shares of Hess by 60.0% during the 1st quarter. Founders Capital Management now owns 800 shares of the oil and gas producer’s stock valued at $27,000 after buying an additional 300 shares in the last quarter. Harbor Investment Advisory LLC boosted its stake in Hess by 89,000.0% in the first quarter. Harbor Investment Advisory LLC now owns 891 shares of the oil and gas producer’s stock worth $30,000 after buying an additional 890 shares in the last quarter. Finally, Sandy Spring Bank bought a new stake in shares of Hess in the 1st quarter worth approximately $33,000. 87.35% of the stock is owned by institutional investors and hedge funds.

Hess Company Profile

Hess Corporation, an exploration and production company, explores for, 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.

See Also: Equal Weight Rating

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