Adams Diversified Equity Fund Inc. Invests $12.19 Million in Targa Resources, Inc. $TRGP

Key Points

• Adams Diversified Equity Fund opened a new position in Targa Resources, buying 48,600 shares worth about $12.19 million in the first quarter.
• Targa Resources recently raised its quarterly dividend to $1.25 per share from $1.00, bringing the annualized payout to $5.00 and a yield of about 1.8%.
• The company’s latest earnings missed analyst expectations, with EPS of $2.21 versus $2.48 expected and revenue of $4.09 billion versus $4.68 billion expected, even as Wall Street remains broadly positive on the stock.

Adams Diversified Equity Fund Inc. bought a new stake in shares of Targa Resources, Inc. (NYSE:TRGP - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 48,600 shares of the pipeline company's stock, valued at approximately $12,185,000.

A number of other large investors have also recently made changes to their positions in the stock. Korea Investment CORP grew its position in shares of Targa Resources by 37.4% during the 3rd quarter. Korea Investment CORP now owns 260,760 shares of the pipeline company's stock worth $43,688,000 after buying an additional 70,998 shares in the last quarter. NFC Investments LLC purchased a new position in shares of Targa Resources during the third quarter valued at $8,478,000. PNC Financial Services Group Inc. raised its holdings in shares of Targa Resources by 57.0% in the fourth quarter. PNC Financial Services Group Inc. now owns 34,805 shares of the pipeline company's stock valued at $6,421,000 after acquiring an additional 12,640 shares in the last quarter. Wellington Management Group LLP lifted its stake in Targa Resources by 9.0% in the third quarter. Wellington Management Group LLP now owns 19,643,139 shares of the pipeline company's stock worth $3,291,012,000 after acquiring an additional 1,620,253 shares during the period. Finally, Eventide Asset Management LLC lifted its stake in Targa Resources by 6.9% in the third quarter. Eventide Asset Management LLC now owns 375,619 shares of the pipeline company's stock worth $62,960,000 after acquiring an additional 24,219 shares during the period. 92.13% of the stock is owned by hedge funds and other institutional investors.

Targa Resources Price Performance

Shares of TRGP stock opened at $272.83 on Friday. Targa Resources, Inc. has a 1-year low of $144.14 and a 1-year high of $280.00. The stock's 50-day moving average is $259.59 and its 200 day moving average is $229.14. The company has a market cap of $58.56 billion, a P/E ratio of 27.59, a PEG ratio of 1.40 and a beta of 0.72. The company has a debt-to-equity ratio of 5.64, a current ratio of 0.72 and a quick ratio of 0.62.

Targa Resources (NYSE:TRGP - Get Free Report) last announced its earnings results on Thursday, May 7th. The pipeline company reported $2.21 EPS for the quarter, missing analysts' consensus estimates of $2.48 by ($0.27). The firm had revenue of $4.09 billion during the quarter, compared to the consensus estimate of $4.68 billion. Targa Resources had a return on equity of 71.00% and a net margin of 12.87%. Research analysts predict that Targa Resources, Inc. will post 10.75 earnings per share for the current fiscal year.

Targa Resources Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Thursday, April 30th were given a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Thursday, April 30th. This is an increase from Targa Resources's previous quarterly dividend of $1.00. Targa Resources's payout ratio is presently 50.56%.

Insider Activity at Targa Resources

In related news, Director Charles R. Crisp sold 10,602 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $255.96, for a total transaction of $2,713,687.92. Following the completion of the transaction, the director owned 66,492 shares in the company, valued at $17,019,292.32. The trade was a 13.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 1.37% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Scotiabank increased their target price on shares of Targa Resources from $249.00 to $257.00 and gave the stock an "outperform" rating in a report on Tuesday, May 12th. Truist Financial boosted their price target on shares of Targa Resources from $285.00 to $289.00 and gave the company a "buy" rating in a report on Tuesday, May 12th. Barclays upped their price target on shares of Targa Resources from $262.00 to $270.00 and gave the stock an "overweight" rating in a research report on Tuesday. Erste Group Bank started coverage on shares of Targa Resources in a research note on Thursday. They set a "buy" rating on the stock. Finally, Citigroup reissued a "buy" rating on shares of Targa Resources in a report on Wednesday, May 27th. Seventeen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, Targa Resources has a consensus rating of "Moderate Buy" and a consensus price target of $272.73.

Targa Resources Profile

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.

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