Adams Natural Resources Fund Inc. Buys 27,800 Shares of Targa Resources, Inc. $TRGP

Key Points

• Adams Natural Resources Fund boosted its stake in Targa Resources by 66.8% in Q4, buying 27,800 additional shares and bringing its total to 69,400 shares worth about $12.8 million.
• Targa Resources reported weaker-than-expected quarterly results, posting earnings of $2.21 per share versus the $2.48 estimate and revenue of $4.09 billion versus the $4.68 billion forecast.
• Analysts remain broadly bullish on TRGP despite the earnings miss, with 15 Buy ratings, 3 Hold ratings, and a consensus price target of $269.21; the stock also recently rose 1.1% and paid an increased quarterly dividend of $1.25.

Adams Natural Resources Fund Inc. lifted its stake in shares of Targa Resources, Inc. (NYSE:TRGP - Free Report) by 66.8% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 69,400 shares of the pipeline company's stock after purchasing an additional 27,800 shares during the quarter. Targa Resources accounts for about 1.9% of Adams Natural Resources Fund Inc.'s holdings, making the stock its 15th largest position. Adams Natural Resources Fund Inc.'s holdings in Targa Resources were worth $12,804,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Arete Wealth Advisors LLC bought a new position in Targa Resources in the 4th quarter worth about $213,000. FORA Capital LLC increased its stake in Targa Resources by 44.1% in the 4th quarter. FORA Capital LLC now owns 9,345 shares of the pipeline company's stock worth $1,724,000 after acquiring an additional 2,861 shares during the last quarter. Kestra Advisory Services LLC increased its stake in Targa Resources by 14.2% in the 4th quarter. Kestra Advisory Services LLC now owns 15,458 shares of the pipeline company's stock worth $2,852,000 after acquiring an additional 1,928 shares during the last quarter. Parkside Financial Bank & Trust increased its stake in Targa Resources by 12.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 855 shares of the pipeline company's stock worth $158,000 after acquiring an additional 95 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its stake in Targa Resources by 77.1% in the 4th quarter. The Manufacturers Life Insurance Company now owns 330,270 shares of the pipeline company's stock worth $60,935,000 after acquiring an additional 143,772 shares during the last quarter. 92.13% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Targa Resources news, Director Charles R. Crisp sold 10,602 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $255.96, for a total value of $2,713,687.92. Following the completion of the sale, the director owned 66,492 shares in the company, valued at approximately $17,019,292.32. This trade represents a 13.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 1.37% of the company's stock.

Targa Resources Trading Up 1.1%

Shares of TRGP stock opened at $272.31 on Friday. The stock has a market capitalization of $58.45 billion, a PE ratio of 27.53, a P/E/G ratio of 1.39 and a beta of 0.72. Targa Resources, Inc. has a 1-year low of $144.14 and a 1-year high of $280.00. The business has a 50-day moving average of $255.42 and a 200 day moving average of $222.87. 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 issued its earnings results on Thursday, May 7th. The pipeline company reported $2.21 earnings per share for the quarter, missing the consensus estimate of $2.48 by ($0.27). The company had revenue of $4.09 billion for the quarter, compared to analysts' expectations of $4.68 billion. Targa Resources had a net margin of 12.87% and a return on equity of 71.00%. As a group, sell-side analysts anticipate that Targa Resources, Inc. will post 10.75 earnings per share for the current year.

Targa Resources Increases Dividend

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

Analysts Set New Price Targets

A number of brokerages have weighed in on TRGP. Barclays upped their target price on Targa Resources from $255.00 to $262.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. BMO Capital Markets restated an "outperform" rating and issued a $241.00 target price on shares of Targa Resources in a research note on Friday, February 20th. Mizuho upped their target price on Targa Resources from $260.00 to $300.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 27th. Citigroup reiterated a "buy" rating on shares of Targa Resources in a research report on Wednesday, May 27th. Finally, Wells Fargo & Company increased their price objective on Targa Resources from $264.00 to $270.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Fifteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Targa Resources currently has an average rating of "Moderate Buy" and a consensus target price of $269.21.

About Targa Resources

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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