Nomura Asset Management Co. Ltd. Decreases Holdings in Targa Resources, Inc. $TRGP

Key Points

• Nomura Asset Management reduced its Targa Resources stake by 10% in the fourth quarter, selling 10,788 shares and ending with 97,390 shares valued at about $18.0 million.
• Despite the sale, institutional ownership remains high, with 92.13% of Targa Resources stock held by hedge funds and other institutional investors. Several other large investors recently increased their positions.
• Analysts remain broadly positive on TRGP: the consensus rating is Moderate Buy with an average price target of $269.21, even as the company recently missed Q1 earnings and revenue estimates.

Nomura Asset Management Co. Ltd. cut its holdings in shares of Targa Resources, Inc. (NYSE:TRGP - Free Report) by 10.0% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 97,390 shares of the pipeline company's stock after selling 10,788 shares during the quarter. Nomura Asset Management Co. Ltd.'s holdings in Targa Resources were worth $17,968,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in TRGP. Korea Investment CORP grew its stake in shares of Targa Resources by 37.4% during the 3rd quarter. Korea Investment CORP now owns 260,760 shares of the pipeline company's stock worth $43,688,000 after acquiring an additional 70,998 shares during the period. Alps Advisors Inc. grew its stake in shares of Targa Resources by 5.5% during the 3rd quarter. Alps Advisors Inc. now owns 143,904 shares of the pipeline company's stock worth $24,110,000 after acquiring an additional 7,497 shares during the period. NFC Investments LLC bought a new position in shares of Targa Resources during the 3rd quarter worth $8,478,000. Envestnet Asset Management Inc. grew its stake in shares of Targa Resources by 5.0% during the 3rd quarter. Envestnet Asset Management Inc. now owns 484,462 shares of the pipeline company's stock worth $81,167,000 after acquiring an additional 22,969 shares during the period. Finally, PNC Financial Services Group Inc. grew its stake in shares of Targa Resources by 57.0% during the 4th quarter. PNC Financial Services Group Inc. now owns 34,805 shares of the pipeline company's stock worth $6,421,000 after acquiring an additional 12,640 shares during the period. 92.13% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Targa Resources 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 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 SEC, which is available at this link. Also, insider Robert Muraro sold 24,589 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $241.34, for a total value of $5,934,309.26. Following the completion of the sale, the insider directly owned 197,401 shares in the company, valued at approximately $47,640,757.34. The trade was a 11.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 1.37% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. The Goldman Sachs Group increased their price target on Targa Resources from $242.00 to $268.00 and gave the stock a "buy" rating in a research note on Monday, April 20th. TD Cowen increased their price target on Targa Resources from $236.00 to $245.00 and gave the stock a "hold" rating in a research note on Monday, May 11th. US Capital Advisors downgraded Targa Resources from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday. Stifel Nicolaus set a $268.00 price target on Targa Resources in a research note on Friday, May 8th. Finally, Seaport Research Partners reiterated a "neutral" rating on shares of Targa Resources in a research note on Monday, May 4th. Fifteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $269.21.

Targa Resources Stock Up 1.5%

Shares of NYSE TRGP opened at $258.97 on Tuesday. Targa Resources, Inc. has a 52 week low of $144.14 and a 52 week high of $280.00. The business has a 50-day simple moving average of $251.66 and a two-hundred day simple moving average of $217.12. The company has a quick ratio of 0.62, a current ratio of 0.72 and a debt-to-equity ratio of 5.64. The company has a market cap of $55.59 billion, a P/E ratio of 26.19, a P/E/G ratio of 1.32 and a beta of 0.72.

Targa Resources (NYSE:TRGP - Get Free Report) last issued its earnings results on Thursday, May 7th. The pipeline company reported $2.21 EPS for the quarter, missing the consensus estimate of $2.48 by ($0.27). Targa Resources had a return on equity of 71.00% and a net margin of 12.87%.The company had revenue of $4.09 billion during the quarter, compared to the consensus estimate of $4.68 billion. Research analysts anticipate that Targa Resources, Inc. will post 10.67 earnings per share for the current fiscal year.

Targa Resources Increases Dividend

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

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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