Palo Duro Investment Partners LP Takes Position in Targa Resources, Inc. $TRGP

Palo Duro Investment Partners LP bought a new stake in shares of Targa Resources, Inc. (NYSE:TRGP) during the 2nd quarter, according to its most recent filing with the SEC. The fund bought 17,565 shares of the pipeline company’s stock, valued at approximately $4,710,000. Targa Resources makes up 0.9% of Palo Duro Investment Partners LP’s portfolio, making the stock its 14th largest position.

Other institutional investors have also made changes to their positions in the company. BlackRock Inc. lifted its stake in Targa Resources by 1.4% during the second quarter. BlackRock Inc. now owns 20,832,687 shares of the pipeline company’s stock worth $5,586,077,000 after purchasing an additional 291,114 shares during the period. State Street Corp raised its holdings in shares of Targa Resources by 1.3% in the 4th quarter. State Street Corp now owns 12,668,233 shares of the pipeline company’s stock worth $2,337,289,000 after buying an additional 162,878 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Targa Resources by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 5,867,345 shares of the pipeline company’s stock worth $1,078,497,000 after buying an additional 45,495 shares during the period. Norges Bank bought a new position in shares of Targa Resources during the 4th quarter worth approximately $735,758,000. Finally, Tortoise Capital Advisors L.L.C. boosted its stake in Targa Resources by 20.3% in the 4th quarter. Tortoise Capital Advisors L.L.C. now owns 3,389,006 shares of the pipeline company’s stock valued at $625,272,000 after buying an additional 572,562 shares in the last quarter. 92.13% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Raymond James Financial set a $335.00 price objective on Targa Resources in a research note on Friday, August 7th. Stifel Nicolaus set a $268.00 price objective on shares of Targa Resources in a report on Friday, May 8th. Mizuho lifted their target price on shares of Targa Resources from $260.00 to $300.00 and gave the company an “outperform” rating in a research note on Wednesday, May 27th. Truist Financial boosted their target price on Targa Resources from $289.00 to $312.00 and gave the stock a “buy” rating in a report on Wednesday, July 15th. Finally, TD Cowen increased their price target on Targa Resources from $270.00 to $275.00 and gave the stock a “hold” rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Targa Resources currently has an average rating of “Buy” and a consensus target price of $297.18.

Targa Resources Trading Up 2.6%

Shares of NYSE TRGP opened at $294.38 on Thursday. Targa Resources, Inc. has a 1-year low of $144.14 and a 1-year high of $307.94. The company has a 50-day moving average of $273.84 and a two-hundred day moving average of $256.34. The company has a market cap of $63.12 billion, a PE ratio of 28.14, a P/E/G ratio of 1.37 and a beta of 0.72. The company has a current ratio of 0.77, a quick ratio of 0.68 and a debt-to-equity ratio of 5.01.

Targa Resources (NYSE:TRGP) last issued its quarterly earnings results on Thursday, August 6th. The pipeline company reported $3.54 earnings per share for the quarter, beating analysts’ consensus estimates of $2.83 by $0.71. Targa Resources had a net margin of 13.55% and a return on equity of 69.26%. The business had revenue of $4.44 billion during the quarter, compared to analyst estimates of $4.90 billion. As a group, equities analysts expect that Targa Resources, Inc. will post 11.2 earnings per share for the current fiscal year.

Targa Resources Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were paid a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, July 31st. Targa Resources’s dividend payout ratio (DPR) is 47.80%.

Insider Buying and Selling at Targa Resources

In other news, Director Charles R. Crisp sold 3,000 shares of the business’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $290.23, for a total transaction of $870,690.00. Following the completion of the sale, the director owned 62,292 shares in the company, valued at $18,079,007.16. The trade was a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Waters S. Iv Davis sold 2,400 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $299.67, for a total value of $719,208.00. Following the transaction, the director directly owned 1,529 shares in the company, valued at $458,195.43. This trade represents a 61.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.37% of the stock is currently owned by company insiders.

Targa Resources News Summary

Here are the key news stories impacting Targa Resources this week:

• Positive Sentiment: J.P. Morgan reaffirmed its Buy rating on Targa Resources, maintaining a constructive view of the company’s growth outlook. Its recent price target of $315 remains above the stock’s recent trading level. J.P. Morgan Buy-rating article
• Positive Sentiment: Recent fundamentals remain supportive. Targa’s second-quarter adjusted EPS of $3.54 exceeded the $2.83 consensus estimate, while midstream industry results benefited from strong throughput, margins and demand for natural gas and NGL exports. Targa has also expanded long-term ExxonMobil-linked Permian agreements and announced new processing and pipeline projects. Midstream earnings outlook article
• Positive Sentiment: The company’s leadership plan adds experienced midstream executive Brent Secrest as President of Logistics and Transportation and promotes Benjamin Branstetter to CFO. Targa said the changes are intended to support long-term growth, while retiring CFO William Byers will remain an adviser through year-end to aid continuity. Targa leadership announcement
• Neutral Sentiment: Institutional positioning was mixed, with 546 investors adding shares and 490 reducing holdings in the latest quarter. Analyst opinion remains favorable overall, but the median price target of $275 is below recent trading levels, suggesting valuation is a consideration.
• Negative Sentiment: Several directors have recently sold shares, including Charles R. Crisp’s $870,690 sale and Waters S. Iv Davis’s $719,208 sale. The transactions do not necessarily indicate a change in business outlook, but the absence of reported insider purchases may weigh on sentiment. Targa insider trading report
• Negative Sentiment: A sharp decline in crude prices recently pressured energy stocks broadly. Investors may also remain cautious about the CFO transition and Targa’s substantial debt-to-equity ratio of approximately 5.0.

About Targa Resources

Targa Resources Corporation (NYSE: TRGP) is a U.S.-focused midstream energy company that provides gathering, processing, transportation, storage and marketing services for natural gas, natural gas liquids (NGLs), and condensate. Its operations span the midstream value chain, including gas gathering systems that collect production from wells, processing plants that separate and recover NGLs and other hydrocarbons, fractionation and purification facilities that prepare NGLs for market, and pipeline and terminal assets that move and store products for producers, refiners and other customers.

The company operates a network of pipelines, processing plants, fractionators and storage facilities that serve producers and consumers across major U.S.