Hennion & Walsh Asset Management Inc. Decreases Stock Holdings in Targa Resources, Inc. $TRGP

Key Points

• Hennion & Walsh Asset Management cut its Targa Resources stake by 13% in the second quarter, selling 4,320 shares and retaining 28,874 shares valued at approximately $7.7 million. Institutional investors collectively own 92.13% of the company.
• Targa reported quarterly EPS of $3.54, beating estimates of $2.83, although revenue of $4.44 billion missed the $4.90 billion forecast. The company declared a $1.25 quarterly dividend, equal to a $5.00 annualized payout and a 1.9% yield.
• TRGP was trading at $257.25, down 4.1%, amid ongoing concerns over its heavy debt load, planned capital spending and commodity-price exposure. Despite these risks, analysts maintain a broadly positive view, with an average “Buy” rating and a $295.24 price target.

Hennion & Walsh Asset Management Inc. lessened its stake in Targa Resources, Inc. (NYSE:TRGP - Free Report) by 13.0% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 28,874 shares of the pipeline company's stock after selling 4,320 shares during the period. Hennion & Walsh Asset Management Inc.'s holdings in Targa Resources were worth $7,742,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also added to or reduced their stakes in the company. Valeo Financial Advisors LLC purchased a new position in shares of Targa Resources in the 2nd quarter worth approximately $235,000. Trust Point Inc. purchased a new stake in Targa Resources during the second quarter valued at approximately $230,000. Czech National Bank lifted its position in Targa Resources by 4.5% during the second quarter. Czech National Bank now owns 61,096 shares of the pipeline company's stock valued at $16,382,000 after acquiring an additional 2,635 shares during the last quarter. PensionDanmark Pensionsforsikringsaktieselskab boosted its stake in Targa Resources by 9.6% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 38,952 shares of the pipeline company's stock valued at $10,445,000 after acquiring an additional 3,400 shares in the last quarter. Finally, Chapin Davis Inc. boosted its stake in Targa Resources by 5.5% in the second quarter. Chapin Davis Inc. now owns 4,736 shares of the pipeline company's stock valued at $1,270,000 after acquiring an additional 246 shares in the last quarter. 92.13% of the stock is currently owned by institutional investors.

Targa Resources Trading Down 4.1%

NYSE TRGP opened at $257.25 on Friday. Targa Resources, Inc. has a 12-month low of $144.14 and a 12-month high of $291.04. The company has a fifty day simple moving average of $268.84 and a two-hundred day simple moving average of $247.93. The company has a current ratio of 0.72, a quick ratio of 0.62 and a debt-to-equity ratio of 5.64. The stock has a market cap of $55.22 billion, a P/E ratio of 24.59, a P/E/G ratio of 1.30 and a beta of 0.72.

Targa Resources (NYSE:TRGP - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The pipeline company reported $3.54 earnings per share for the quarter, beating analysts' consensus estimates of $2.83 by $0.71. Targa Resources had a net margin of 13.55% and a return on equity of 73.14%. The firm had revenue of $4.44 billion for the quarter, compared to analyst estimates of $4.90 billion. On average, analysts forecast that Targa Resources, Inc. will post 10.92 earnings per share for the current year.

Targa Resources Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 31st will be paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a yield of 1.9%. The ex-dividend date is Friday, July 31st. Targa Resources's payout ratio is presently 50.56%.

Insider Buying and Selling at Targa Resources

In other news, Director Charles R. Crisp sold 10,602 shares of the firm's stock in a transaction dated 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 transaction, the director directly owned 66,492 shares in the company, valued at $17,019,292.32. This trade represents a 13.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 1.37% of the company's stock.

Key Targa Resources News

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

• Positive Sentiment: Strong Q2 earnings and guidance: Targa reported adjusted EBITDA of $1.603 billion, up 38% year over year, while EPS of $3.54 exceeded the $2.83 consensus estimate. Management now expects full-year adjusted EBITDA toward the high end of its $5.7 billion–$5.9 billion range. Reuters article
• Positive Sentiment: Volume growth and project execution: Record Permian inlet volumes, NGL transportation, fractionation and LPG exports supported results. Targa also brought its Train 11 fractionator, Delaware Express expansion and East Driver processing plant online, with East Driver starting ahead of schedule.
• Positive Sentiment: Shareholder returns and analyst support: Targa raised its quarterly dividend 25% to $1.25 per share and repurchased $80 million of stock. Wells Fargo raised its price target to $282 and assigned an “overweight” rating; TD Cowen lifted its target to $275, although it maintained a “hold” rating. Benzinga article
• Neutral Sentiment: Revenue performance was mixed: Quarterly revenue rose 4% to $4.44 billion but fell short of the $4.90 billion analyst forecast. Lower natural-gas prices and unfavorable hedge impacts limited commodity-sales growth, while higher fee-based midstream revenue helped offset the weakness.
• Negative Sentiment: Commodity and balance-sheet risks remain: Negative Waha natural-gas prices in the Permian, higher operating and depreciation expenses, approximately $19.6 billion of debt and planned 2026 growth capital spending of about $4.5 billion may concern investors. The stock’s recent decline suggests the strong earnings beat and guidance raise were not enough to overcome those concerns.

Wall Street Analyst Weigh In

TRGP has been the topic of a number of recent analyst reports. Scotiabank upped their price target on Targa Resources from $249.00 to $257.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. Raymond James Financial set a $335.00 price objective on Targa Resources in a research report on Friday. Stifel Nicolaus set a $268.00 target price on Targa Resources in a research note on Friday, May 8th. Citigroup reaffirmed a "buy" rating on shares of Targa Resources in a research report on Wednesday, May 27th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Targa Resources in a research note on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average price target of $295.24.

Targa Resources Company 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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