Exploring Hess Midstream LP (HESM) Investor Profile: Who’s Buying and Why?

Ever wondered who's investing in Hess Midstream LP (HESM) and what's driving their decisions? With a market capitalization of $8.41 billion as of April 2025, HESM is a significant player in the energy sector, providing essential midstream services. Is it the attractive 7.27% dividend yield, the robust revenue growth of 11.10%, or the strategic positioning of its assets that's capturing investors' attention? Dive in to explore the investor profile of HESM and uncover the factors influencing their investment strategies.

Hess Midstream LP (HESM) Who Invests in [Company Name] and Why?

Understanding the investor profile of Hess Midstream LP (HESM) provides valuable insights into the company's stock dynamics and market perception. A diverse range of investors, from retail to institutional, are drawn to HESM for various reasons, influencing its investment strategies and overall market behavior. Here’s a detailed look at who invests in Hess Midstream LP and their motivations.

Key Investor Types

The ownership of Hess Midstream LP is distributed among different types of investors:

• Institutional Investors: Make up a significant portion of HESM's shareholders. As of April 15, 2025, institutional investors hold approximately 141,144,713 shares. According to WallStreetZen, institutional shareholders own 81.67% of Hess Midstream.
• Hess Midstream Insiders: Own a substantial portion of the company. Hess Midstream insiders own 183.77% of the company.
• Retail Investors: Hold a smaller percentage of shares. WallStreetZen data indicates that 0.00% of Hess Midstream is owned by retail investors.

Major Institutional Shareholders

The largest institutional shareholders include:

• Alps Advisors Inc
• AMLP - ALERIAN MLP ETF
• Tortoise Capital Advisors, L.l.c.
• Goldman Sachs Group Inc
• MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.
• Invesco Ltd.
• MLPA - Global X MLP ETF
• Td Asset Management Inc
• Epoch Investment Partners, Inc.
• GLPAX - Goldman Sachs MLP Energy Infrastructure Fund Class A Shares

Investment Motivations

Several factors attract investors to Hess Midstream LP:

• Growth Prospects: Hess Midstream is expected to experience substantial growth. The company anticipates a 10% increase in throughput volume across its oil and gas systems in 2025 compared to 2024. Revenue is also projected to grow, with analysts forecasting an 11% annual increase.
• Dividend Yield: A significant draw for investors is HESM's attractive dividend yield. The company has a forward dividend yield of 7.47%, placing it in the top 15% of dividend-paying stocks. The annual dividend is $2.71 per share.
• Stable Cash Flow: Hess Midstream has a history of generating stable cash flow, making it an appealing investment for those seeking consistent returns.
• Strategic Assets: The company’s strategic assets, such as the Tioga Gas Plant and the Mentor Storage Terminal, enhance its service offerings and market reach, making it a compelling investment in the energy sector.
• Return of Capital Program: Hess Midstream has extended its Return of Capital program through 2027, targeting annual distribution per Class A share growth of at least 5%.

Investment Strategies

Investors in Hess Midstream LP employ various strategies:

• Long-Term Holding: Many institutions adopt a long-term holding strategy, capitalizing on the company's stable growth and consistent dividend payouts.
• Income-Focused Investing: Given the high dividend yield, some investors focus on HESM as an income-generating asset.
• Value Investing: With a forward P/E ratio of 9.97, HESM is seen as an attractively valued stock compared to its industry peers, appealing to value investors.

Institutional Ownership Trends

Institutional ownership in Hess Midstream LP has seen some changes:

• As of April 2025, there are 391 institutional owners and shareholders.
• Institutional shares (long) amount to 141,144,713, representing 120.91% (excluding 13D/G), which is an 8.20% increase from the previous quarter.
• The fund sentiment score indicates the level of institutional accumulation in the stock.

Financial Health and Growth

Hess Midstream's financial health and growth prospects further incentivize investment:

• The company's revenue in 2025 is projected to be $1,495,500,000.
• Earnings for 2025 are estimated at $223,100,000.
• The company’s return on equity is an impressive 159.08%, reflecting its ability to generate substantial profits from shareholders' equity.

Market Performance

Hess Midstream's stock has shown strong performance, attracting investor confidence:

• The stock hit an all-time high of $42.63 in March 2025.
• The average analyst price target is $44.50, suggesting a potential upside of 24.72% from the current share price.

In conclusion, Hess Midstream LP attracts a diverse investor base due to its growth prospects, high dividend yield, strategic assets, and stable financial performance. These factors collectively contribute to the company's appeal as a valuable addition to a diversified portfolio. To delve deeper into the historical context, mission, and operational framework, explore Hess Midstream LP (HESM): History, Ownership, Mission, How It Works & Makes Money.

Hess Midstream LP (HESM) Institutional Ownership and Major Shareholders of Hess Midstream LP (HESM)

Institutional ownership in Hess Midstream LP (HESM) reflects the degree of confidence that large financial entities have in the company's performance and future prospects. These investors, which include mutual funds, pension funds, hedge funds, and insurance companies, manage substantial capital and often conduct extensive due diligence before investing. Their investment decisions can significantly influence HESM's stock price and overall market stability.

As of the data available, several institutional investors hold significant positions in Hess Midstream LP (HESM). While specific shareholding data can fluctuate, examining the most recent filings and reports provides a clearer picture of the top institutional holders. These major shareholders often play a crucial role in shaping the company’s strategic direction through voting rights and direct engagement with the management team.

Here are some of the top institutional investors in Hess Midstream LP (HESM) based on available data:

• BlackRock Fund Advisors: Known for its extensive holdings across various sectors, BlackRock often maintains a significant position in energy infrastructure companies like Hess Midstream LP (HESM).
• The Vanguard Group: As one of the largest investment management companies globally, Vanguard typically holds a substantial number of shares in major publicly traded companies.
• State Street Global Advisors: Another major player in institutional investing, State Street, often has significant holdings reflecting its broad investment strategies.
• Fidelity Management & Research: Fidelity is a well-known investment firm that manages a variety of funds, some of which may include Hess Midstream LP (HESM) in their portfolios.
• Other Prominent Funds: Various other mutual funds, hedge funds, and pension funds may also hold notable positions, contributing to the overall institutional ownership of Hess Midstream LP (HESM).

Changes in institutional ownership can provide valuable insights into the evolving sentiment surrounding Hess Midstream LP (HESM). Increases in institutional holdings may indicate a positive outlook, driven by factors such as strong financial performance, strategic initiatives, or favorable industry trends. Conversely, decreases in holdings could signal concerns about the company's future prospects or broader market conditions.

Recent shifts in ownership can be identified by comparing current holdings against previous reports, typically filed quarterly. Monitoring these changes helps to understand whether institutional investors are increasing or decreasing their stakes, which can be a leading indicator of potential stock price movements.

Institutional investors wield considerable influence over Hess Midstream LP (HESM)'s stock price due to the large volumes of shares they trade. Their trading activity can create upward or downward pressure, affecting market sentiment and attracting other investors. Additionally, these large investors often engage with company management to discuss strategic issues, governance, and financial performance, thereby influencing the company’s direction.

Here’s an example of how institutional ownership might impact Hess Midstream LP (HESM):

• Stock Price Volatility: Significant buying or selling by institutional investors can lead to increased stock price volatility.
• Strategic Influence: Major shareholders can influence decisions related to capital allocation, dividend policies, and strategic acquisitions.
• Market Confidence: High institutional ownership can enhance market confidence, signaling that sophisticated investors find the company attractive.

Understanding the dynamics of institutional ownership provides a deeper insight into the investor profile of Hess Midstream LP (HESM), helping stakeholders gauge market sentiment and potential future performance. For more insights into Hess Midstream LP (HESM)'s values, explore Mission Statement, Vision, & Core Values of Hess Midstream LP (HESM).

Hess Midstream LP (HESM) Key Investors and Their Impact on Hess Midstream LP (HESM)

Understanding the investor profile of Hess Midstream LP (HESM) provides valuable insights into the company's stability, strategic direction, and potential stock performance. Key investors can exert considerable influence through their holdings and actions. Recent activity in share ownership can signal important shifts in sentiment and future prospects. The identities and behaviors of these investors are critical for anyone looking to understand Hess Midstream LP (HESM)'s market dynamics.

Institutional investors form a significant portion of Hess Midstream LP (HESM)'s shareholder base. These entities, which include mutual funds, pension funds, hedge funds, and insurance companies, manage large sums of money and often have a long-term investment horizon. Their investment decisions are driven by in-depth research and analysis, making their activity a strong indicator of Hess Midstream LP (HESM)'s perceived value and growth potential. According to recent data, institutional investors hold a substantial percentage of Hess Midstream LP (HESM)'s outstanding shares.

Among the notable institutional investors in Hess Midstream LP (HESM) are:

• Tortoise Capital Advisors Llc: This firm is known for its investments in energy infrastructure and holds a significant position in Hess Midstream LP (HESM).
• Kayne Anderson Capital Advisors LP: Another key player specializing in energy investments, Kayne Anderson's stake reflects confidence in Hess Midstream LP (HESM)'s long-term prospects.
• Fidelity Management & Research Co LLC: As one of the largest asset managers globally, Fidelity's investment indicates broader market acceptance of Hess Midstream LP (HESM).

These major investors often conduct thorough due diligence before investing, and their continued or increased investment can reassure other investors about the company's fundamentals. Conversely, a significant reduction in their holdings might raise concerns.

Hedge funds, while typically holding smaller positions compared to mutual funds, can exert influence through activism or strategic trading. Activist hedge funds may push for changes in corporate governance or business strategy to unlock value. While specific activist involvement in Hess Midstream LP (HESM) isn't widely publicized, monitoring hedge fund activity is essential.

Recent moves by major investors can provide valuable signals. For example, a large purchase of shares by an institutional investor might indicate strong confidence in Hess Midstream LP (HESM)'s future performance. Conversely, a significant sale could suggest concerns about valuation or industry trends. Keeping track of these transactions through regulatory filings (such as 13F filings) and financial news reports is crucial for investors.

Examining insider trading activity—purchases and sales of shares by company executives and board members—offers another layer of insight. Insider buying can be a positive sign, suggesting that those with the most knowledge about the company believe the stock is undervalued. Insider selling, while not always negative (it could be for personal financial reasons), warrants further investigation.

Here is a hypothetical example of recent ownership changes:

Disclaimer: This table is entirely hypothetical and for illustrative purposes only. Always refer to official filings for accurate data.

Understanding who invests in Hess Midstream LP (HESM) and why is essential for making informed investment decisions. By tracking the moves of major institutional investors, hedge funds, and insiders, investors can gain valuable insights into market sentiment and potential future performance. Monitoring these trends, combined with a thorough analysis of Hess Midstream LP (HESM)'s financials and industry outlook, can help investors make well-informed choices.

To gain more insight into Hess Midstream LP (HESM), you might find this resource helpful: Hess Midstream LP (HESM): History, Ownership, Mission, How It Works & Makes Money

Hess Midstream LP (HESM) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions to Hess Midstream LP (HESM) is crucial for assessing the company's stability and future prospects. Major shareholders' attitudes, market responses to ownership changes, and analyst perspectives all contribute to a comprehensive view of HESM's financial landscape.

Currently, gauging the precise sentiment of major shareholders requires ongoing analysis of their trading activity, public statements, and filings. A positive sentiment generally correlates with increased investment and confidence in HESM's strategic direction, while a negative sentiment may lead to decreased holdings and market instability. These sentiments can be influenced by factors such as:

• HESM's financial performance, including revenue, earnings, and cash flow.
• Industry trends and commodity price fluctuations.
• Regulatory changes and geopolitical events.
• Company-specific developments, such as new projects or partnerships.

Recent market reactions to changes in ownership or large investor moves can provide insights into how the broader investment community perceives HESM. For example, a significant acquisition of shares by an institutional investor might lead to a short-term increase in stock price, reflecting increased confidence. Conversely, a large sell-off could trigger a price decline.

Analyst perspectives play a vital role in shaping investor sentiment and influencing market behavior. Analysts typically evaluate HESM's financial performance, growth prospects, and competitive positioning to provide recommendations to investors. These recommendations can range from 'buy' to 'sell,' and they often include price targets that reflect the analyst's expectations for the stock's future performance.

Here's an example of how analyst ratings might be distributed (this is a hypothetical example):

A consensus 'buy' rating suggests that analysts generally have a positive outlook on HESM's future, while a 'sell' rating indicates a more negative view. It's important to consider the source and track record of analysts when evaluating their opinions.

For further insights into HESM's corporate identity, you might find this resource helpful: Mission Statement, Vision, & Core Values of Hess Midstream LP (HESM).