Targa Resources, Inc. (NYSE:TRGP) Stock Has Average Price Target of $325.58

Key Points

• Analyst sentiment is broadly positive: All 22 analysts covering Targa Resources rate the stock Buy or Strong Buy, with an average 12-month price target of $325.58.
• Targa reported third-quarter adjusted earnings of $3.04 per share and revenue of $5.60 billion, both above analyst estimates.
• The company declared a $1.25 quarterly dividend and expects its 2027 common dividend to rise 20%; it also announced expansion projects that could add capacity. Shares nevertheless declined around the results.

Shares of Targa Resources, Inc. (NYSE:TRGP - Get Free Report) have been given a consensus recommendation of "Buy" by the twenty-two analysts that are presently covering the company, Marketbeat reports. Twenty research analysts have rated the stock with a buy recommendation and two have issued a strong buy recommendation on the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $325.58.

A number of brokerages have recently weighed in on TRGP. Jefferies Financial Group dropped their price objective on Targa Resources from $326.00 to $311.00 and set a "buy" rating for the company in a research note on Friday. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $322.00 price target on shares of Targa Resources in a research note on Tuesday, October 13th. Truist Financial restated a "buy" rating and set a $345.00 price objective (up from $312.00) on shares of Targa Resources in a research report on Monday, September 21st. Mizuho lifted their target price on shares of Targa Resources from $300.00 to $320.00 and gave the stock an "outperform" rating in a research report on Friday, September 11th. Finally, Wells Fargo & Company upped their price objective on Targa Resources from $282.00 to $324.00 and gave the company an "overweight" rating in a research report on Wednesday, September 2nd.

Key Targa Resources News

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

• Positive Sentiment: Third-quarter adjusted earnings were $3.04 per share, above analyst estimates of roughly $2.74–$2.81 and up from $2.20 a year earlier. Revenue reached $5.60 billion, also topping estimates. Q3 earnings and revenue beat estimates
• Positive Sentiment: Targa expects its 2027 common dividend to increase 20%, and declared a $1.25 dividend, reinforcing the company’s cash-return outlook. Quarterly results and dividend outlook
• Positive Sentiment: The company ordered equipment for a plant expansion and announced Train 14, a new natural gas liquids fractionator. The projects could add capacity and support future growth. Plant expansion and Train 14 announcement
• Negative Sentiment: Despite the earnings beat and dividend news, TRGP shares declined around the results. One report noted a sharp drop on the SEC filing day, but the coverage provided no clear explanation for the selling. Stock movement around filing day

Insider Buying and Selling at Targa Resources

In other news, Director S Davis sold 2,400 shares of the business's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $299.67, for a total transaction of $719,208.00. Following the sale, the director owned 1,529 shares in the company, valued at $458,195.43. The trade was a 61.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Charles Crisp sold 3,000 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $290.23, for a total transaction of $870,690.00. Following the completion of the sale, the director directly owned 62,292 shares in the company, valued at approximately $18,079,007.16. The trade was a 4.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 7,216 shares of company stock valued at $2,127,634 in the last quarter. Corporate insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Targa Resources

Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. lifted its holdings in Targa Resources by 1.4% in the 2nd quarter. BlackRock Inc. now owns 20,832,687 shares of the pipeline company's stock worth $5,586,077,000 after buying an additional 291,114 shares during the period. State Street Corp increased its stake in shares of Targa Resources by 4.6% in the second quarter. State Street Corp now owns 14,226,166 shares of the pipeline company's stock worth $3,814,604,000 after acquiring an additional 626,885 shares during the period. Aberdeen Group plc increased its holdings in Targa Resources by 3,159.2% in the 3rd quarter. Aberdeen Group plc now owns 4,254,731 shares of the pipeline company's stock worth $1,150,096,000 after acquiring an additional 4,124,184 shares in the last quarter. Bank of America Corp DE boosted its position in shares of Targa Resources by 28.0% during the 1st quarter. Bank of America Corp DE now owns 3,151,993 shares of the pipeline company's stock valued at $790,299,000 after acquiring an additional 688,598 shares during the last quarter. Finally, Deutsche Bank AG boosted its holdings in Targa Resources by 21.7% during the 2nd quarter. Deutsche Bank AG now owns 3,025,248 shares of the pipeline company's stock valued at $811,190,000 after acquiring an additional 539,582 shares during the period. Institutional investors own 92.13% of the company's stock.

Targa Resources Trading Down 2.6%

Shares of TRGP stock opened at $264.65 on Friday. The firm has a fifty day moving average of $289.31 and a 200-day moving average of $261.35. The stock has a market cap of $56.75 billion, a price-to-earnings ratio of 23.42, a P/E/G ratio of 1.22 and a beta of 0.76. Targa Resources has a 52-week low of $166.18 and a 52-week high of $316.60. The company has a debt-to-equity ratio of 5.01, a quick ratio of 0.68 and a current ratio of 0.77.

Targa Resources (NYSE:TRGP - Get Free Report) last announced its earnings results on Thursday, November 5th. The pipeline company reported $3.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.30. The business had revenue of $5.60 billion during the quarter, compared to analyst estimates of $4.77 billion. Targa Resources had a return on equity of 69.26% and a net margin of 13.55%. On average, equities research analysts forecast that Targa Resources will post 11.48 earnings per share for the current fiscal year.

Targa Resources Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 17th. Stockholders of record on Friday, October 30th will be issued a dividend of $1.25 per share. The ex-dividend date is Friday, October 30th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.9%. Targa Resources's payout ratio is presently 47.80%.

Targa Resources Company Profile

Targa Resources Corp. is a midstream energy company that gathers, processes, transports and stores natural gas and natural gas liquids (NGLs), and provides services for crude oil. Its infrastructure connects oil and gas producers with pipelines, processing facilities, fractionators, storage sites and domestic and international markets.

The company's services include natural gas gathering, compression and processing; NGL transportation and fractionation; and crude oil gathering and terminaling.

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