Hess Corporation's (NYSE:HES) Chief Executive Officer, John B. Hess, recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Hess sold shares worth approximately $50.65 million in a series of transactions conducted over three consecutive days.
The transactions involved the sale of 406,000 shares on November 20, 84,400 shares on November 21, and 89,894 shares on November 22. The shares were sold at prices ranging from $146.53 to $149.34 per share. Following these sales, Hess retains a direct ownership of 7,988 shares.
These transactions were executed as part of a planned disposition and reflect a continued reshaping of Hess's personal holdings in the company. The sales were made through a limited liability company for which Hess serves as the investment manager, as noted in the filing.
In other recent news, Hess Corporation has seen significant developments in its financial landscape. Mizuho (NYSE:MFG) Securities raised Hess's price target to $199, maintaining a neutral stance, following the company's third-quarter 2024 earnings report and the ongoing acquisition process by Chevron Corporation (NYSE:CVX). Meanwhile, CFRA revised Hess's stock price target downward to $145.00 due to regulatory risk considerations. Despite the revision, Hess reported a third-quarter EPS of $2.14, surpassing the consensus estimate, and a 17% year-over-year increase in production.
Chevron's growth strategy is centered around the acquisition of Hess, which has been delayed due to a challenge from Exxon Mobil Corporation (NYSE:XOM). This acquisition would grant Chevron a 30% interest in a high-yield Guyana oilfield. However, Chevron's declining earnings have led to changes within the company's leadership.
Hess Corporation reported better-than-expected third quarter results, with net production increasing 17% year-over-year to 461,000 barrels of oil equivalent per day. The company also announced a 14% dividend increase and raised its 2024 capital expenditure forecast to $4.9 billion. These are recent developments shaping the financial outlook for Hess Corporation and Chevron Corporation.
InvestingPro Insights
In light of John B. Hess's recent stock sales, it's worth examining Hess Corporation's current financial position and market performance. According to InvestingPro data, Hess Corporation boasts a market capitalization of $45.55 billion, reflecting its significant presence in the energy sector.
The company's P/E ratio stands at 17.2, which, when considered alongside an InvestingPro Tip noting that Hess is "Trading at a low P/E ratio relative to near-term earnings growth," suggests potential value for investors. This is further supported by the company's impressive PEG ratio of 0.22, indicating that the stock may be undervalued relative to its growth prospects.
Hess Corporation has demonstrated strong financial performance, with revenue growth of 21.35% over the last twelve months and an EBITDA growth of 36.29% during the same period. These figures align with another InvestingPro Tip highlighting that Hess has been "Profitable over the last twelve months."
For income-focused investors, it's noteworthy that Hess "Has maintained dividend payments for 38 consecutive years," as per an InvestingPro Tip. The company currently offers a dividend yield of 1.35%, with a dividend growth rate of 14.29% over the last twelve months.
While CEO John B. Hess has reduced his holdings, the stock's recent performance remains positive, with a 7.68% price total return over the past month and an 8% return over the last three months. This resilience is particularly interesting given another InvestingPro Tip suggesting that the "RSI indicates the stock is in overbought territory."
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 10 more tips for Hess Corporation, providing a deeper understanding of the company's financial health and market position.
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