President and COO Of Hess Midstream Makes $2.60M Sale

It was reported on August 14, that John A Gatling, President and COO at Hess Midstream HESM executed a significant insider sell, according to an SEC filing.

What Happened: Gatling opted to sell 62,457 shares of Hess Midstream, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $2,597,593.

As of Friday morning, Hess Midstream shares are down by 1.09%, currently priced at $41.02.

Discovering Hess Midstream: A Closer Look

Hess Midstream LP owns, operates, develops, and acquires a diverse set of midstream assets and provides fee-based services to Hess and third-party customers. It conducts its business through three operating segments: gathering, processing and storage, and terminaling and exporting. The company derives the maximum revenue from the gathering segment. Its gathering segment consists of the following assets namely Natural Gas Gathering and Compression; Crude Oil Gathering and Produced Water Gathering and Disposal.

Hess Midstream's Economic Impact: An Analysis

Revenue Growth: Hess Midstream's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 13.41%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 87.47%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Hess Midstream's EPS is below the industry average. The company faced challenges with a current EPS of 0.74. This suggests a potential decline in earnings.

Debt Management: With a high debt-to-equity ratio of 5.85, Hess Midstream faces challenges in effectively managing its debt levels, indicating potential financial strain.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 15.42, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.84, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Hess Midstream's EV/EBITDA ratio at 7.66 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Hess Midstream's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.