John B. Hess, the CEO of Hess Corp (NYSE:HES), has sold shares totaling approximately $77.8 million, according to a recent SEC filing. The transactions, executed on November 6 and 7, involved the sale of non-derivative securities at prices ranging from $141.86 to $144.4 per share.
Following these transactions, Hess retains a significant number of shares, with some held in a charitable trust and others through a limited liability company. Additionally, the filing disclosed option exercises, amounting to $6.7 million, at a price of $74.49 per share.
In other recent news, Hess Corp's financial outlook was revised by CFRA, with a decrease in the stock price target to $145.00 and lowered earnings per share estimates for 2024 and 2025 due to regulatory risk considerations. Despite this, Hess Corp reported a third-quarter earnings per share of $2.14, surpassing consensus estimates. Additionally, the company experienced a significant increase in production during the third quarter, largely due to operations in Guyana.
In parallel, Chevron Corp faces challenges related to the delayed acquisition of Hess Corp and declining earnings, leading to internal leadership changes. However, Chevron's head of investor relations expressed optimism about the company's future production growth rate.
Hess Corp also reported better-than-expected third quarter results, with a 17% year-over-year increase in net production. Despite a decrease in realized crude oil selling prices, the company raised its 2024 capital expenditure forecast and announced a 14% dividend increase. These are recent developments for both Chevron Corporation (NYSE:CVX) and Hess Corporation (NYSE:HES).
InvestingPro Insights
While John B. Hess's recent stock sale might raise eyebrows, a closer look at Hess Corp's financials reveals a company with solid fundamentals. According to InvestingPro data, Hess boasts a market capitalization of $43.74 billion and a P/E ratio of 16.57, suggesting a reasonable valuation relative to its earnings.
InvestingPro Tips highlight that Hess has maintained dividend payments for 38 consecutive years, demonstrating a commitment to shareholder returns. This consistency is particularly noteworthy in the volatile energy sector. The company's current dividend yield stands at 1.4%, with a 14.29% dividend growth in the last twelve months.
Moreover, Hess Corp has shown strong financial performance, with a 21.98% revenue growth in the last twelve months and an impressive EBITDA growth of 38.31% over the same period. These figures indicate robust operational efficiency and market demand for the company's products.
It's worth noting that Hess operates with a moderate level of debt, which provides financial flexibility in a capital-intensive industry. This prudent financial management, combined with the company's profitability over the last twelve months, suggests a stable foundation despite the CEO's recent share sale.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 8 more tips available for Hess Corp. These extra tips could provide valuable context for understanding the company's position in the current market landscape.
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