NEW YORK (TheStreet) -- Shares of Hess (HES) are rising, up 0.38% to $66.53 in early market trading on Monday, after the company had coverage resumed with a "buy" rating by analysts at Goldman Sachs this morning.
Goldman Sachs analysts also set a $92 price target on shares of the oil and gas company.
Hess recently declared a quarterly dividend scheduled for Wednesday, December 31. Investors will be given a dividend of 25 cents per share, representing a $1.00 dividend on an annualized basis and a yield of 1.5%.
New York City-based Hess is a global integrated energy company that operates under segments including exploration and production, and marketing and refining.
Separately, TheStreet Ratings team rates HESS CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HESS CORP (HES) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HES's revenue growth has slightly outpaced the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 0.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HES's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.43, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for HESS CORP is rather high; currently it is at 63.46%. Regardless of HES's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HES's net profit margin of 36.72% significantly outperformed against the industry.
- HES has underperformed the S&P 500 Index, declining 14.04% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, HESS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: HES Ratings Report