Is Hess Corporation (HES) A Risky Investment?

Hess Corporation (NYSE:HES) finished Wednesday with a subtraction of -$0.81 to close at $89.24, a downside of -0.90 percent. An average of 2,565,260 shares of common stock have been traded in the last five days. There was a gain of $6.36 in the past week. The last 20 days have seen an average of 2,637,295 shares traded, while the 50-day average volume stands at 2,226,546.

HES stock has increased by 29.50% in the last month. The company shares reached their 1-month lowest point of $66.20 on 09/20/21. With the stock rallying to its 52-week high on 10/12/21, shares of the company touched a low of $34.82 and a high of $92.79 in 52 weeks. In spite of this, the price is down -3.83% from the 52-week high.


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Insider Transactions

29 days have passed since Hess Corporation (HES) last reported insider trading activity. Hill Gregory P., who is COO and President, E&P, most recently acquired $15,000 shares at $72.04 per share on Sep 15. In this transaction, the insider spent $1,080,600. Chief Executive Officer, HESS JOHN B, disposed of 150,000 shares at a price of $89.24 on Jun 16. The insider now owns more than $13,385,547 worth of shares. Prior to that, Chief Executive Officer HESS JOHN B went on to Sale 150,000 shares at $89.24 each on Jun 16. An amount of $13,385,534 was transacted.

Valuation Metrics

Hess Corporation (HES) has a trailing price-to-earnings (P/E) ratio of 18.90 for the broader industry and 19.70 for the sector. The stock’s beta is 2.07. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.35, the price-to-book (PB) ratio at 5.00, and the price-to-cash flow ratio at 17.49.

Hess Corporation pays a $1.00 dividend per share annually. It offers a dividend yield of 1.12%. The company’s most recent quarterly dividend payment took place on Sep. 30, and it was $0.25 a share, without any change from last year. Its dividend has been increased for the last 1 consecutive years with the latest increase dividend $0.15 reported on Wednesday September 4 2013.

Hess Corporation will next go ex-dividend on 15-Dec. The next dividend payment Hess Corporation will make is expected to be $0.25.

The quick ratio of Hess Corporation for the three months ended June 29 was 1.50, and the current ratio was 1.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.44 and a total debt to equity ratio of 1.54 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 75.00% against a 5-year average of 21.7%. Hess Corporation’s EBITDA margin for the year ending June 29 is 34.08%, while its operating margin for the same period stands at 13.10%. Its gross profit as reported stood at -$2.38 billion compared to revenue of $4.8 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Hess Corporation’s return on assets was -0.80%, compared to -10.8% over the last five years. In the past year, the return on investment has been -18.00%, and the 5-year average is -12.6%. Meanwhile, the return on equity (ROE) for the past 12 months has been -2.90% and the 5-year average holds at -24.0%. For the broader industry, ROE averaged 12.45 over the past year.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $1.6 billion in the quarter, while revenues of $1.92 billion were grew 14.33%. The analyst consensus anticipated Hess Corporation’s latest quarter earnings to come in at $0.18 per share, but it turned out to be $0.24, a 33.30% surprise. For the quarter, EBITDA amounted to $638.0 million. Shareholders own equity worth $309.67 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Hess Corporation (HES) price momentum. RSI 9-day as of the close on 13 October was 77.99%, suggesting the stock is Overbought, with historical volatility in this time frame at 34.15%.

As of today, HES’s price is $88.38 +7.67% or $6.36 from its 5-day moving average. HES is currently trading +22.84% higher than its 20-day SMA and +8.91% higher than its 100-day SMA. However, the stock’s current price level is +19.02% above the SMA50 and +68.92% above the SMA200.

The stochastic %K and %D were 86.01% and 90.54%, respectively, and the average true range (ATR) was 3.10. With the 14-day stochastic at 81.38% and the average true range at 3.00, the RSI (14) stands at 73.54%. The stock has reached 3.85 on the 9-day MACD Oscillator while the 14-day reading was at 6.68.

Analyst Ratings

Tudor Pickering launched coverage on Hess Corporation (NYSE: HES) in its analyst report released on May 27, 2021. The firm assigned the stock a a Hold rating.The consensus rating for Hess Corporation (HES) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell HES, while 9 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 13 others rate it as a “buy”.

What is HES’s price target for the next 12 months?

Analysts predict a range of price targets between $70.00 and $125.00, with a median target of $102.00. Taking a look at these predictions, the average price target given by analysts for Hess Corporation (HES) stock is $100.21.

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