Q2 EPS Estimates for Targa Resources Lowered by Analyst

Key Points

• US Capital Advisors has reduced its Q2 2025 EPS forecast for Targa Resources from $2.00 to $1.93, while maintaining a "Strong-Buy" rating on the stock.
• Targa Resources has announced a significant dividend increase to $1.00 per share, representing a 2.39% yield, scheduled for distribution on August 15th.
• The stock is currently rated as "Buy" by the consensus of analysts, with a price target averaging $209.86, reflecting a positive outlook for the pipeline company.

Targa Resources, Inc. (NYSE:TRGP - Free Report) - Stock analysts at US Capital Advisors dropped their Q2 2025 earnings per share estimates for shares of Targa Resources in a research note issued on Monday, July 28th. US Capital Advisors analyst J. Carreker now forecasts that the pipeline company will post earnings of $1.93 per share for the quarter, down from their previous estimate of $2.00. US Capital Advisors has a "Strong-Buy" rating on the stock. The consensus estimate for Targa Resources' current full-year earnings is $8.15 per share. US Capital Advisors also issued estimates for Targa Resources' FY2025 earnings at $7.13 EPS, Q2 2026 earnings at $2.13 EPS, FY2026 earnings at $9.05 EPS and FY2027 earnings at $10.16 EPS.

Targa Resources (NYSE:TRGP - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The pipeline company reported $0.91 EPS for the quarter, missing the consensus estimate of $2.04 by ($1.13). The firm had revenue of $4.56 billion during the quarter, compared to analysts' expectations of $5.01 billion. Targa Resources had a net margin of 7.35% and a return on equity of 30.48%.

TRGP has been the topic of a number of other research reports. UBS Group lowered their price objective on Targa Resources from $259.00 to $228.00 and set a "buy" rating on the stock in a research report on Thursday, May 15th. Scotiabank restated an "outperform" rating on shares of Targa Resources in a research report on Tuesday, July 15th. TD Securities began coverage on Targa Resources in a research report on Monday, July 7th. They set a "hold" rating on the stock. TD Cowen initiated coverage on Targa Resources in a research report on Monday, July 7th. They set a "hold" rating and a $192.00 price target on the stock. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $205.00 price objective on shares of Targa Resources in a research note on Tuesday, July 15th. Two investment analysts have rated the stock with a hold rating, thirteen have issued a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $209.86.

Targa Resources Stock Performance

Shares of NYSE:TRGP traded down $3.34 during trading on Tuesday, hitting $163.07. 1,756,224 shares of the company were exchanged, compared to its average volume of 1,887,618. The company has a debt-to-equity ratio of 6.04, a current ratio of 0.65 and a quick ratio of 0.57. Targa Resources has a 52-week low of $122.56 and a 52-week high of $218.51. The company has a market cap of $35.37 billion, a PE ratio of 30.03, a P/E/G ratio of 1.09 and a beta of 1.07. The stock has a 50 day moving average of $167.78 and a 200 day moving average of $180.31.

Targa Resources Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Thursday, July 31st will be given a $1.00 dividend. This is an increase from Targa Resources's previous quarterly dividend of $0.12. This represents a $4.00 annualized dividend and a yield of 2.5%. The ex-dividend date is Thursday, July 31st. Targa Resources's dividend payout ratio (DPR) is 73.66%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Snowden Capital Advisors LLC raised its stake in Targa Resources by 2.0% in the fourth quarter. Snowden Capital Advisors LLC now owns 2,652 shares of the pipeline company's stock worth $473,000 after buying an additional 53 shares in the last quarter. Ritholtz Wealth Management raised its position in shares of Targa Resources by 1.3% during the 1st quarter. Ritholtz Wealth Management now owns 4,942 shares of the pipeline company's stock worth $991,000 after purchasing an additional 62 shares during the last quarter. Stratos Wealth Advisors LLC raised its holdings in Targa Resources by 3.6% in the 1st quarter. Stratos Wealth Advisors LLC now owns 1,776 shares of the pipeline company's stock valued at $356,000 after acquiring an additional 62 shares during the last quarter. UMB Bank n.a. grew its stake in shares of Targa Resources by 11.9% in the 2nd quarter. UMB Bank n.a. now owns 658 shares of the pipeline company's stock valued at $115,000 after buying an additional 70 shares during the period. Finally, QRG Capital Management Inc. boosted its position in shares of Targa Resources by 0.8% during the 2nd quarter. QRG Capital Management Inc. now owns 9,296 shares of the pipeline company's stock worth $1,618,000 after purchasing an additional 72 shares during the period. Hedge funds and other institutional investors own 92.13% of the company's stock.

About Targa Resources

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil.