JP Morgan Initiates Coverage on Hess Corp (NYSE:HES). What May be Next?


Why Has JP Morgan Given Hess Corp (NYSE:HES) a $58.00 Price Target

The financial firm JP Morgan has today began issuing coverage on Hess Corp (NYSE:HES) shares, with a Neutral rating, while setting the PT at $58.00.

From a total of 18 analysts covering Hess Corp. (NYSE:HES) stock, 13 rate it a ”Buy”, 0 a “Sell”, and 9 a ”Hold”. This means that 59% of the ratings are positive. The highest target price is $85 while the lowest target price is $60. The mean of all analyst targets is $69.39 with a 44.64% above today’s ($51.95) stock price. Hess Corp. was the topic of 11 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Oppenheimer downgraded shares on November 17 to “Perform” rating. Credit Suisse upgraded shares to “Outperform” rating and $90 target share price in a report from a July 22. Argus Research upgraded HES stock in a recent report from August 18 to “Buy” rating. Finally, Societe Generale upgraded the stock to “Buy” rating in a report issued on a July 31.

The stock decreased 1.98% or $1.05 during the last trading session, striking $51.95. Approximately shares of stock traded hands. Hess Corp. (NYSE:HES) has declined 30.24% since May 6, 2015 and is downtrending. It has underperformed by 29.44% the S&P500.

The overall sentiment of institutions has increased to 0.96 in Q2 2015. Its up 0.17, from 0.79 in 2015Q2. The ratio is positive, as 66 institutions have sold all the shares of Hess Corp. that they owned while 197 funds have taken shares off the table. 56 funds have purchased shares for the first time while 197 added to their positions. These institutions now hold 220.77 million shares or 10.10% more than the 200.52 million shares they owned in 2015Q2.

The Fund Astenbeck Capital Management Llc currently is holding shares equating to 7.71% of its total portfolio in Hess Corp. representing a total of 178,188 shares. Another fund,Sound Energy Partners Inc., is holding a total of 50,000 shares equating to 5.06% of their holdings. Additionally, Price Michael F has a 630,000 share stake in Hess Corp. which represents 4.71% of their total portfolio. The Fund, Mitchell Group Inc, based out of Texas, has also built up a stake in the stock, which represents a total of 4.57% of their total portfolio. Finally New Century Advisors Llc, a fund which is based in the state of Maryland reported a total holdings of 72,500 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 5, 2015, shareholders of Hess Corp. have witnessed 3 insider purchases, and a total of 2 insider sales equating to a net activity of approximately $7.35 million . Wilson Robert N bought 3,000 shares worth approximately $149,290. Hess John B bought 143,900 shares worth approximately $7.52M. Mullin John H Iii bought 7,000 shares worth approximately $381,439. Hill Gregory P. sold 4,300 shares worth approximately $252,023. The company insider Truelove Brian D. sold 1,000 shares worth $74,286.

Hess Corporation is an exploration and production (E&P) firm that develops, produces, purchases, transports and sells natural gas and crude oil. The company has a market cap of $15.16 billion. The Company’s production activities are located primarily in the United States, Denmark, Equatorial Guinea, the Joint Development Area of Malaysia/Thailand, Malaysia and Norway. It currently has negative earnings. The Company’s production in the United States was from offshore properties in the Gulf of Mexico and onshore properties in the Bakken oil shale play in the Williston Basin of North Dakota, the Permian Basin of Texas, and the Utica Basin of Ohio.

According to Zacks Investment Research, “New York-based Hess Corporation, previously known as Amerada Hess Corporation, is a global exploration and production company that develops, produces, purchases, transports and sells crude oil and natural gas. The company’s E&P activities are concentrated in Algeria, Australia, Azerbaijan, Brazil, Denmark, Egypt, Equatorial Guinea, Gabon, Ghana, Indonesia, Libya, Malaysia, Norway, Russia, Thailand, the United Kingdom and the United States. As of year-end 2014, Hess’ proved reserves tally stood at 1.43 billion oil-equivalent barrels. In 2013, Hess sold its gas stations and exited the refining business to operate as a pure play E&P.” Get a free copy of the Zacks research report on Hess Corp. (HES).