Mackenzie Financial Corp recently made headlines by strategically trimming its significant holdings in Hess Corporation, a prominent player in the oil and gas sector. This move, detailed in their latest 13F filing with the Securities and Exchange Commission, saw a calculated reduction in their investment portfolio, signalling a notable shift in their strategy regarding this energy sector giant.
Specifically, Mackenzie Financial divested 3,970 shares, resulting in a 9.9% decrease in their stake in Hess Corporation stock during the first quarter. Despite this reduction, the firm retains a substantial position, holding 36,296 shares of the oil and gas producer’s stock, valued at an impressive $5,798,000 as per their most recent financial disclosures, underscoring their continued, albeit adjusted, confidence in the company.
Beyond Mackenzie Financial, a diverse array of institutional investors and hedge funds have actively engaged in transactions involving Hess shares, reflecting broader market dynamics. Notable new positions were initiated by entities such as Bank Julius Baer & Co. Ltd Zurich and Wayfinding Financial LLC, while Global X Japan Co. Ltd. significantly expanded its holdings, illustrating varied investment strategies across the financial landscape.
In addition to institutional movements, insider trading activities have also drawn attention, with Hess Corporation’s CEO executing a substantial stock sale. This transaction involved the divestment of 250,000 shares at an average price of $136.01, amounting to over $34 million. Following this sale, the CEO’s direct ownership in the company remains significant, highlighting insider perspectives on the company’s valuation.
Hess Corporation’s financial performance was further elucidated by its recent quarterly earnings report, released at the end of April. The oil and gas producer reported earnings per share of $1.81, which fell short of analysts’ consensus estimates of $1.95, indicating a slight underperformance relative to market expectations for the period.
Despite missing EPS estimates, the company reported revenues of $2.92 billion for the quarter, closely aligning with analyst projections of $2.95 billion. Hess also demonstrated robust financial health with a net margin of 17.65% and a strong return on equity of 21.78%, although quarterly revenue experienced a 12.1% decline compared to the same period in the previous year.
The company’s stock market performance and outlook are frequently reassessed by equities research analysts. Recent adjustments to ratings and price targets reflect evolving market sentiment, with some analysts upgrading their recommendations to “hold” or “overweight,” while others have adjusted price objectives downwards, leading to an average “Hold” rating and a target price of $162.78 across various firms.
Hess Corporation’s operational scope encompasses extensive exploration and production activities, primarily focused on crude oil, natural gas liquids, and natural gas across key regions including the United States, Guyana, and Malaysia. The company operates through distinct Exploration and Production, and Midstream segments, underscoring its integrated approach to the energy sector and commitment to global resource development.
