Morningstar Investment Management LLC Sells 4,878 Shares of Texas Pacific Land Corporation $TPL

Key Points

• Morningstar Investment Management cut its Texas Pacific Land stake by 41.1% in the first quarter, selling 4,878 shares and leaving it with 6,996 shares valued at about $3.32 million.
• Texas Pacific Land reported strong quarterly results, with $2.07 EPS topping expectations and revenue of $236.8 million also above estimates. The company continues to post high profitability, including a 35.52% return on equity.
• The company paid a quarterly dividend of $0.60 per share and has a low yield of about 0.6%. Meanwhile, analyst sentiment remains cautious, with a consensus rating of “Reduce” despite an average price target of $639.

Morningstar Investment Management LLC trimmed its stake in Texas Pacific Land Corporation (NYSE:TPL - Free Report) by 41.1% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 6,996 shares of the financial services provider's stock after selling 4,878 shares during the period. Morningstar Investment Management LLC's holdings in Texas Pacific Land were worth $3,320,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Summit Securities Group LLC boosted its stake in Texas Pacific Land by 171.9% during the fourth quarter. Summit Securities Group LLC now owns 87 shares of the financial services provider's stock worth $25,000 after buying an additional 55 shares in the last quarter. IFP Advisors Inc increased its stake in Texas Pacific Land by 185.3% in the fourth quarter. IFP Advisors Inc now owns 97 shares of the financial services provider's stock valued at $28,000 after acquiring an additional 63 shares during the period. Quarry LP bought a new stake in Texas Pacific Land in the third quarter valued at about $29,000. Eagle Bay Advisors LLC acquired a new position in Texas Pacific Land in the fourth quarter worth about $31,000. Finally, Los Angeles Capital Management LLC acquired a new position in Texas Pacific Land in the fourth quarter worth about $31,000. Institutional investors and hedge funds own 59.94% of the company's stock.

Insider Transactions at Texas Pacific Land

In other news, CFO Chris Steddum sold 3,170 shares of the firm's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $400.25, for a total value of $1,268,792.50. Following the transaction, the chief financial officer owned 12,870 shares of the company's stock, valued at approximately $5,151,217.50. This trade represents a 19.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 6.90% of the company's stock.

Texas Pacific Land Stock Performance

NYSE:TPL opened at $419.46 on Friday. The company has a market cap of $28.93 billion, a price-to-earnings ratio of 57.46 and a beta of 0.58. The stock's fifty day moving average price is $395.25 and its two-hundred day moving average price is $416.54. Texas Pacific Land Corporation has a 52-week low of $269.23 and a 52-week high of $547.20.

Texas Pacific Land (NYSE:TPL - Get Free Report) last released its earnings results on Wednesday, May 6th. The financial services provider reported $2.07 EPS for the quarter, beating the consensus estimate of $2.03 by $0.04. Texas Pacific Land had a return on equity of 35.52% and a net margin of 60.03%.The company had revenue of $236.80 million during the quarter, compared to analysts' expectations of $233.00 million. On average, equities analysts predict that Texas Pacific Land Corporation will post 8.88 EPS for the current fiscal year.

Texas Pacific Land Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Monday, June 1st. Texas Pacific Land's payout ratio is currently 32.88%.

Analysts Set New Price Targets

TPL has been the topic of a number of recent research reports. Zacks Research downgraded Texas Pacific Land from a "hold" rating to a "strong sell" rating in a report on Tuesday, June 30th. Weiss Ratings upgraded Texas Pacific Land from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $639.00.

Texas Pacific Land Company Profile

Texas Pacific Land Corporation NYSE: TPL is a Texas-based land management company that derives revenue from the ownership and stewardship of large tracts of land and associated mineral rights in West Texas. The company's origins trace to 19th century land grants associated with the Texas and Pacific Railway; over time those grant holdings have been retained and managed as a standalone corporate asset base. Texas Pacific Land is publicly listed and operates as a landowner and resource manager rather than as a traditional oil and gas producer.

The company's primary activities include management of surface rights and leasing of land for energy and other commercial uses, administration of mineral royalty interests, and provision of water and related services to industrial customers.

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