NEW YORK (TheStreet) -- Shares of Hess Corp. (HES) are dropping 1.46% to $68.64 in Monday's early morning trading after Goldman Sachs downgraded the New York-based company to "neutral" from "buy," and lowered its price target to $68 from $80.
The rating downgrade and price target change comes after Hess-owned oil railcars cars derailed near Heimdal, ND on May 6, reported Reuters.
In response to the derailment, a Hess spokesman said the crude complied with a new state rule requiring the treatment of crude oil that is meant to make it less prone to explode, The Wall Street Journal reported.
Additionally, the company reported first quarter results at the end of April. It reported revenue of $1.55 million, or loss of $0.98 per share, compared to revenue of $2.6 million, or loss off $1.38 per share in the same quarter a year ago.
"Our financial results were impacted by lower crude oil and natural gas selling prices," CEO John Hess said.
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 reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."