Dimensional Fund Advisors LP Cuts Stock Position in Targa Resources, Inc. $TRGP

Key Points

• Dimensional Fund Advisors LP trimmed its stake in Targa Resources by 1.2% (sold 28,547 shares), leaving it with 2,271,626 shares—about a 1.06% stake valued at roughly $380.6 million.
• Analysts maintain a consensus rating of "Moderate Buy" with an average price target of $240.79, and several firms have recently raised targets (notably Morgan Stanley to $298).
• Targa reported an EPS beat ($2.51 vs. $2.35 est.), has a $51.37 billion market cap and pays a $1.00 quarterly dividend (1.7% yield), but carries high leverage (debt-to-equity 5.21); institutional ownership is 92.13% and insiders sold about 80,340 shares last quarter.

Dimensional Fund Advisors LP decreased its holdings in Targa Resources, Inc. (NYSE:TRGP - Free Report) by 1.2% in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 2,271,626 shares of the pipeline company's stock after selling 28,547 shares during the quarter. Dimensional Fund Advisors LP owned 1.06% of Targa Resources worth $380,612,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the business. Peoples Financial Services CORP. purchased a new position in Targa Resources in the 3rd quarter valued at approximately $34,000. Root Financial Partners LLC purchased a new stake in shares of Targa Resources during the third quarter worth $39,000. Avion Wealth increased its position in shares of Targa Resources by 475.0% during the third quarter. Avion Wealth now owns 276 shares of the pipeline company's stock worth $46,000 after acquiring an additional 228 shares during the period. First Horizon Corp acquired a new stake in shares of Targa Resources in the third quarter valued at $47,000. Finally, Elevation Point Wealth Partners LLC purchased a new position in Targa Resources in the second quarter valued at $53,000. 92.13% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on TRGP shares. Wall Street Zen downgraded Targa Resources from a "buy" rating to a "hold" rating in a report on Saturday, November 8th. Morgan Stanley boosted their price objective on Targa Resources from $266.00 to $298.00 and gave the stock an "overweight" rating in a research report on Tuesday. TD Cowen upped their target price on shares of Targa Resources from $192.00 to $220.00 and gave the stock a "hold" rating in a research note on Monday, February 23rd. Stifel Nicolaus raised their target price on shares of Targa Resources from $213.00 to $243.00 and gave the company a "buy" rating in a report on Friday, February 20th. Finally, The Goldman Sachs Group reiterated a "buy" rating and issued a $242.00 price target on shares of Targa Resources in a research note on Friday, February 20th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $240.79.

Targa Resources Price Performance

TRGP stock opened at $238.99 on Friday. The business has a 50 day moving average price of $204.36 and a 200 day moving average price of $179.93. The stock has a market cap of $51.37 billion, a price-to-earnings ratio of 27.82, a PEG ratio of 1.04 and a beta of 0.84. Targa Resources, Inc. has a fifty-two week low of $144.14 and a fifty-two week high of $250.00. The company has a quick ratio of 0.55, a current ratio of 0.67 and a debt-to-equity ratio of 5.21.

Targa Resources (NYSE:TRGP - Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The pipeline company reported $2.51 EPS for the quarter, beating the consensus estimate of $2.35 by $0.16. The company had revenue of $4.06 billion for the quarter, compared to analyst estimates of $4.12 billion. Targa Resources had a net margin of 10.88% and a return on equity of 65.48%. Equities research analysts anticipate that Targa Resources, Inc. will post 8.15 earnings per share for the current fiscal year.

Targa Resources Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were paid a $1.00 dividend. This represents a $4.00 annualized dividend and a yield of 1.7%. The ex-dividend date was Friday, January 30th. Targa Resources's dividend payout ratio is currently 46.57%.

Insider Transactions at Targa Resources

In other Targa Resources news, Director Charles R. Crisp sold 1,359 shares of the firm's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $229.30, for a total transaction of $311,618.70. Following the transaction, the director directly owned 77,094 shares of the company's stock, valued at approximately $17,677,654.20. This trade represents a 1.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Lindsey Cooksen sold 435 shares of the firm's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $231.72, for a total value of $100,798.20. Following the transaction, the director directly owned 11,670 shares in the company, valued at approximately $2,704,172.40. This represents a 3.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 80,340 shares of company stock worth $18,757,824. Insiders own 1.34% of the company's stock.

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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