Infrastructure Capital Advisors LLC Trims Holdings in Targa Resources, Inc. $TRGP

Key Points

• Infrastructure Capital Advisors cut its Targa Resources stake by 17.8% in the fourth quarter, leaving it with 89,477 shares valued at about $16.5 million.
• Targa Resources reported Q1 earnings and revenue below expectations, with EPS of $2.21 versus $2.48 expected and revenue of $4.09 billion versus $4.68 billion estimated.
• The company raised its quarterly dividend to $1.25 per share from $1.00, while analysts still mostly remain bullish with a consensus Moderate Buy rating and a $269.21 price target.

Infrastructure Capital Advisors LLC reduced its holdings in shares of Targa Resources, Inc. (NYSE:TRGP - Free Report) by 17.8% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 89,477 shares of the pipeline company's stock after selling 19,404 shares during the quarter. Targa Resources accounts for about 1.6% of Infrastructure Capital Advisors LLC's investment portfolio, making the stock its 18th largest holding. Infrastructure Capital Advisors LLC's holdings in Targa Resources were worth $16,509,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Olistico Wealth LLC bought a new position in Targa Resources during the fourth quarter worth $27,000. Atlantic Union Bankshares Corp bought a new position in Targa Resources during the fourth quarter worth $27,000. Miller Capital Partners Inc. bought a new position in Targa Resources during the fourth quarter worth $30,000. Leonteq Securities AG bought a new position in Targa Resources during the fourth quarter worth $31,000. Finally, Godfrey Financial Associates Inc. bought a new position in Targa Resources during the fourth quarter worth $37,000. 92.13% of the stock is currently owned by hedge funds and other institutional investors.

Targa Resources Stock Up 0.4%

TRGP stock opened at $260.71 on Thursday. The company has a quick ratio of 0.62, a current ratio of 0.72 and a debt-to-equity ratio of 5.64. Targa Resources, Inc. has a fifty-two week low of $144.14 and a fifty-two week high of $280.00. The firm's 50-day simple moving average is $256.38 and its 200 day simple moving average is $225.11. The stock has a market cap of $55.96 billion, a PE ratio of 26.36, a price-to-earnings-growth ratio of 1.33 and a beta of 0.72.

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

Targa Resources Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Thursday, April 30th were issued a $1.25 dividend. This is a boost from Targa Resources's previous quarterly dividend of $1.00. The ex-dividend date of this dividend was Thursday, April 30th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.9%. Targa Resources's dividend payout ratio is 50.56%.

Insider Buying and Selling at Targa Resources

In related news, Director Charles R. Crisp sold 10,602 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $255.96, for a total value of $2,713,687.92. Following the sale, the director owned 66,492 shares of the company's stock, valued at $17,019,292.32. This trade represents a 13.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.37% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on TRGP shares. Wells Fargo & Company raised their price objective on Targa Resources from $264.00 to $270.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. Citigroup restated a "buy" rating on shares of Targa Resources in a research note on Wednesday, May 27th. Stifel Nicolaus set a $268.00 price objective on Targa Resources in a research note on Friday, May 8th. Mizuho raised their price objective on Targa Resources from $260.00 to $300.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 27th. Finally, Morgan Stanley raised their price objective on Targa Resources from $327.00 to $331.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 12th. Fifteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $269.21.

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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