Shares of Targa Resources, Inc. (NYSE:TRGP) have been given a consensus rating of “Moderate Buy” by a group of seventeen brokerages, according to MarketBeat. This rating reflects a balanced outlook, with three analysts recommending a hold, thirteen suggesting a buy, and one advocating for a strong buy on the stock. The average target price among these brokerages over the past year stands at $210.21.
Several financial institutions have recently updated their assessments of Targa Resources. On November 6, 2023, BMO Capital Markets increased its price target from $185.00 to $196.00, classifying the stock as “outperform.” In contrast, the Goldman Sachs Group slightly lowered its target from $189.00 to $188.00, maintaining a buy rating. Additionally, Morgan Stanley revised its target upward from $240.00 to $261.00, noting an “overweight” rating in its report on November 12, 2023. Wells Fargo & Company also increased its target price from $198.00 to $205.00, reaffirming an “overweight” rating in a note released on August 8, 2023. Lastly, the Royal Bank of Canada boosted its target from $208.00 to $213.00, also giving a recommendation to outperform.
On November 5, 2023, Targa Resources reported its quarterly earnings, which revealed earnings per share (EPS) of $2.20. This figure fell short of analysts’ expectations of $2.22 by $0.02. The company’s revenue for the quarter totaled $4.15 billion, compared to a consensus estimate of $4.70 billion. The firm recorded a return on equity of 43.35% and a net margin of 8.99%.
In addition to these financial insights, Targa Resources announced a quarterly dividend of $1.00 per share, which was paid on November 17, 2023. This dividend reflects an annualized payout of $4.00 and a dividend yield of 2.3%. The ex-dividend date was set for October 31, 2023, with a payout ratio of 53.19%.
Recent insider transactions have also garnered attention. On November 14, 2023, D. Scott Pryor, an insider, sold 20,000 shares at an average price of $172.21, resulting in a total transaction value of approximately $3.44 million. Following this sale, Pryor retained 22,139 shares valued at around $3.81 million, marking a reduction of 47.46% in ownership.
Institutional investors continue to be significant stakeholders in Targa Resources. Vanguard Group Inc. increased its holdings by 1.5% during the third quarter, now owning 28,382,289 shares valued at approximately $4.76 billion. Wellington Management Group LLP also raised its position by 9.0%, bringing its total to 19,643,139 shares valued at around $3.29 billion. Other notable institutional investors include Geode Capital Management LLC and Invesco Ltd., which have also expanded their stakes in the company.
Targa Resources operates as a key player in North America’s midstream infrastructure sector, encompassing activities such as gathering, processing, and transporting natural gas. The company’s operations are divided into two main segments: Gathering and Processing, and Logistics and Transportation, which include various services related to natural gas and crude oil.
The company’s stock performance, combined with its strategic movements in the market, positions Targa Resources as a notable entity in the energy sector, attracting the attention of both analysts and institutional investors alike.
