Vanguard Group Boosts Targa Resources Stake by 375,939 Shares

Vanguard Group Inc. has increased its stake in Targa Resources, Inc. (NYSE: TRGP) by purchasing an additional 375,939 shares during the second quarter of 2023. According to a recent filing with the Securities & Exchange Commission, the institutional investor now holds 27,960,214 shares, representing approximately 12.89% of Targa Resources. This stake is valued at approximately $4.87 billion as of the end of the reporting period.

The investment landscape surrounding Targa Resources has seen activity from other institutional investors as well. Disciplina Capital Management LLC entered a new position in Targa Resources valued at approximately $46,000 in the first quarter. Hilltop National Bank also acquired shares worth $63,000 during the second quarter. Additionally, Private Trust Co. NA boosted its holdings in Targa by 57.1% during the same period, bringing its total to 476 shares valued at $83,000 after acquiring 173 shares.

The majority of Targa Resources’ stock, approximately 92.13%, is held by hedge funds and other institutional investors, indicating strong institutional confidence in the company.

Analyst Ratings and Stock Performance

Targa Resources has been a focal point for several research analysts, with various ratings and price targets being adjusted. Weiss Ratings reaffirmed a “buy (B-)” rating on the company’s shares in a note dated October 8, 2023. On November 13, The Goldman Sachs Group lowered its price target from $189.00 to $188.00 while maintaining a “buy” rating. Scotiabank also adjusted their price objective from $199.00 to $198.00, stating a “sector outperform” rating.

In a separate analysis, JPMorgan Chase & Co. raised its target price on Targa Resources from $214.00 to $215.00, assigning an “overweight” rating. Mizuho similarly cut its price target from $212.00 to $207.00, while continuing to view the stock as “outperform.” Currently, one analyst has assigned a Strong Buy rating, thirteen have given a Buy rating, and three have assigned a Hold rating. According to MarketBeat, Targa Resources holds a consensus rating of “Moderate Buy” with a target price of $210.21.

The shares of Targa Resources opened at $170.17 on Thursday, with a market capitalization of $36.53 billion. The company has recorded a one-year low of $144.14 and a high of $218.51. Its current ratio stands at 0.69, a quick ratio at 0.56, and a debt-to-equity ratio of 5.93.

Recent Earnings and Dividend Announcement

Targa Resources recently reported its quarterly earnings results on November 5, 2023. The company posted earnings per share (EPS) of $2.20, slightly below analysts’ consensus estimates of $2.22. The reported revenue for the quarter was $4.15 billion, missing the expected $4.70 billion.

The firm declared a quarterly dividend of $1.00, which was paid on November 17, 2023, to investors on record as of October 31, 2023. This annualizes to $4.00, yielding approximately 2.4%. The ex-dividend date was also October 31, 2023, with a dividend payout ratio currently at 53.19%.

In a separate development, insider D. Scott Pryor sold 20,000 shares of Targa Resources on November 14, 2023, for an average price of $172.21, totaling $3.44 million. Following the sale, Pryor retains 22,139 shares in the company, reflecting a decrease of approximately 47.46% in his ownership.

About Targa Resources

Targa Resources Corp., along with its subsidiary, Targa Resources Partners LP, operates a comprehensive portfolio of midstream infrastructure assets across North America. The company focuses on gathering, processing, and transporting natural gas, as well as handling natural gas liquids (NGLs) and crude oil. Its operations are categorized into two primary segments: Gathering and Processing, and Logistics and Transportation.

As Targa Resources continues to navigate the complexities of the energy sector, its performance and strategic decisions remain closely watched by investors and analysts alike.