Why I’m Kicking Myself For Missing Out On Hess Corporation (HES)?

The exact reason why investors have been taking up Hess Corporation (NYSE:HES) stock at a frenetic pace might seem like a bit of a head-scratcher at the moment, but that’s only if you are buying the stock for the wrong reasons. On 12 February, the shares accumulated 1.56 points or 2.91 percent at $55.14 with a light trade volume of 4.036 million shares. After opening the session at $54.82, the shares went as high as $55.53 and as low as $54.54, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $17 billion and now has 307.44 million shares outstanding. Hess Corporation (HES) stock has gained 7.55 percent of market value in 21 trading days.

HES stock has a trailing 3-year beta of 1.96, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.09 a share in the trailing twelve months. The stock’s value has surged 36.15 percent year to date (YTD) against a rise of 30.91 percent in 12 month’s time. The company’s shares still trade -26.29 percent away from its 1-year high of $74.81 and 54.92 percent up from 52-week low of $35.59. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Hess Corporation (HES) will probably climb 16.23 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $87 price as 12-month high target. This represents a whopping 57.78 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $63.75, which represents a return potential of 15.61 percent when compared to the closing price of the stock of $55.14 on Tuesday, February 12. The lowest price target for the stock is $38 — slightly more than -31.08 percent from HES’s current share price.

History has shown that shares in Hess Corporation have gone up on 19 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings.

Let’s take a look at some insider activity at Hess Corporation (NYSE:HES) and see the pattern. The earliest insider trade took place on 02/07/2019. Lynch Richard D. parted with a total of 17.84 thousand shares of company at average share price of $54.04. The total for the sales was set at $964.24 thousand. After this transaction, the Senior Vice President account balance stood at 13.22 thousand shares. The stock grew 2.04 percent since that insider sale. On 02/07/2019, Slentz Andrew P, Senior Vice President, sold 2.68 thousand shares at a price per share of $53.4. This removed 143.33 thousand shares from the insider’s fortune and the stock saw a 3.26 percent rally in value since the news became public. This transaction left 23.01 thousand shares in the Senior Vice President account.

On 02/07/2019, Senior Vice President Lowery-Yilmaz Barbara J performed a sale transaction worth $125.65 thousand. This sale at $53.4 each has eliminated 2.35 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 3.26 percent increase since the transaction was reported. The insider now is left with 60.1 thousand shares remaining in the account. Hill Gregory P., who performs the COO and President, E&P job, sold 11.66 thousand shares for $622.59 thousand. The disposal occurred on 02/07/2019 was priced at $53.4 per share. The share price soared 3.26 percent since the reporting date. Hill Gregory P. now left with a stake of 89.13 thousand HES stock worth $4.91 million after the insider selling.

The stock is currently hovering around the first support level of $54.61. Below this, the next support is placed in the zone of $54.08. Till the time, the HES stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 57.93 on daily chart, which may remain a cause for concern. If the price breaks below $54.08 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $55.6 mark may result into a pull-back move towards $56.06 level.

Further, it is sporting a 2.63 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.86. 77.2 percent is the gross profit margin for Hess Corporation and operating margin sits at -71.2 percent. Along with this, the net profit margin is -55.7 percent.