HESM Shorts Double in a Month as Borrow Market Tightens Fast

Short sellers have been building aggressively into Hess Midstream LP, with the short position now at 11.5% of the free float, the highest level in at least a year. That figure was below 6% just five weeks ago. Over October alone, shares short rose 86%, from roughly 8 million shares in late September to nearly 15 million by November 3. The build has been rapid and consistent, with virtually no reversal days since the week of October 26.

The borrow market has tightened sharply alongside the position buildup. Availability dropped to 45.9% by November 3, meaning only one share remains available for every two already on loan. At the start of October, availability was above 500%, a loose and unremarkable lending market. That compression has happened in roughly four weeks. Borrowing costs have moved in the same direction: cost to borrow hit 1.2% on November 3, up from 0.39% on October 26, and up more than 200% over the past month. Neither figure is yet extreme by market standards, but the direction and pace are notable. HESM's short score, ORTEX's composite bearish-positioning measure, reached 74.2 on November 3, up from 59.6 on October 23 and the highest reading in the tracked history. The utilization rank sits in the bottom 7th percentile of the universe.

The stock has not moved in line with the short buildup. HESM gained 3.3% over the past week to close at $32.70, while most of its closest peers moved the other way. OKE fell 4.2% on the week. WES dropped 3.2%. EPD was roughly flat. HESM's relative strength against peers is striking given the positioning pressure building underneath it.

The analyst picture reinforces caution. Wells Fargo cut its price target from $40 to $34 on November 4, maintaining an Equal-Weight rating. Morgan Stanley holds an Underweight with a $30 target. JP Morgan downgraded to Underweight in October while holding its $39 target. The consensus sits at Hold across four analysts, with a mean price target of $33.43, barely above the current price. EPS momentum factor scores rank in the 8th and 20th percentiles over 30 and 90 days respectively, reflecting meaningful downward estimate revisions. Raymond James moved to Outperform on October 23 with a $32 target, the lone recent upgrade, though the target is fractionally below where the stock is now trading. The analyst recommendation divergence score ranks in the 91st percentile, meaning the spread of opinion across the coverage group is wider than almost any other name in the universe.

One structural feature of HESM's register is worth noting. Hess Investments North Dakota LLC, a 13D filer with activist status on the register, holds 38% of the class as last disclosed in October 2026. GIP II Blue Holding holds a further 23.2% per its Schedule 13D. Together these two holders account for more than 60% of shares outstanding as last filed, which constrains the tradeable float and amplifies the effect of short positioning changes on borrow markets. As with all 13D/G disclosures, stakes reflect positions as reported; holders falling below 5% may not file again.

The next earnings release is scheduled for November 5. The two prior quarterly results produced muted price reactions: the stock moved less than 1.5% in either direction on the day of the last two prints. The gap between that historical calm and the current level of short activity in the weeks before this release is the clearest data point to track as the quarter closes.