Entropy Technologies LP Raises Holdings in Targa Resources, Inc. (NYSE:TRGP)

Key Points

• Entropy Technologies LP significantly increased its holdings in Targa Resources, Inc. by 68.2%, acquiring an additional 20,209 shares, bringing their total to 49,859 shares valued at nearly $10 million.
• Targa Resources reported earnings of $2.87 per share for the latest quarter, exceeding expectations, with a revenue of $4.26 billion despite falling short of analyst estimates.
• The company announced a quarterly dividend of $1.00, marking a substantial increase from the previous dividend of $0.12, resulting in an annual yield of 2.4%.

Entropy Technologies LP lifted its position in shares of Targa Resources, Inc. (NYSE:TRGP - Free Report) by 68.2% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 49,859 shares of the pipeline company's stock after buying an additional 20,209 shares during the period. Targa Resources makes up approximately 1.0% of Entropy Technologies LP's portfolio, making the stock its 9th largest position. Entropy Technologies LP's holdings in Targa Resources were worth $9,995,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Shelton Capital Management purchased a new stake in Targa Resources during the 4th quarter worth about $221,000. Bessemer Group Inc. increased its stake in shares of Targa Resources by 6.0% during the fourth quarter. Bessemer Group Inc. now owns 1,971 shares of the pipeline company's stock worth $353,000 after buying an additional 112 shares during the period. Scotia Capital Inc. raised its holdings in Targa Resources by 4.4% in the fourth quarter. Scotia Capital Inc. now owns 4,556 shares of the pipeline company's stock valued at $813,000 after acquiring an additional 193 shares in the last quarter. Townsquare Capital LLC lifted its stake in Targa Resources by 57.2% in the fourth quarter. Townsquare Capital LLC now owns 3,495 shares of the pipeline company's stock worth $624,000 after acquiring an additional 1,272 shares during the last quarter. Finally, Sagespring Wealth Partners LLC acquired a new position in Targa Resources during the 4th quarter worth approximately $472,000. 92.13% of the stock is currently owned by institutional investors and hedge funds.

Targa Resources Stock Down 1.2%

Shares of NYSE TRGP traded down $1.97 during midday trading on Thursday, reaching $164.77. 578,420 shares of the company's stock were exchanged, compared to its average volume of 1,876,328. The company has a debt-to-equity ratio of 5.93, a quick ratio of 0.56 and a current ratio of 0.69. Targa Resources, Inc. has a 52-week low of $140.74 and a 52-week high of $218.51. The business's fifty day moving average price is $168.61 and its two-hundred day moving average price is $177.46. The stock has a market capitalization of $35.46 billion, a PE ratio of 23.28, a price-to-earnings-growth ratio of 1.05 and a beta of 1.12.

Targa Resources (NYSE:TRGP - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The pipeline company reported $2.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.92. Targa Resources had a return on equity of 43.35% and a net margin of 8.99%. The company had revenue of $4.26 billion for the quarter, compared to the consensus estimate of $4.82 billion. Analysts forecast that Targa Resources, Inc. will post 8.15 EPS for the current year.

Targa Resources Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Thursday, July 31st will be issued a $1.00 dividend. This is a positive change from Targa Resources's previous quarterly dividend of $0.12. The ex-dividend date is Thursday, July 31st. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.4%. Targa Resources's dividend payout ratio (DPR) is presently 56.58%.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on TRGP. JPMorgan Chase & Co. increased their price objective on Targa Resources from $189.00 to $209.00 and gave the company an "overweight" rating in a report on Thursday, July 10th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $208.00 price objective (up from $205.00) on shares of Targa Resources in a research report on Tuesday. Citigroup dropped their target price on Targa Resources from $227.00 to $197.00 and set a "buy" rating on the stock in a research report on Friday, May 9th. The Goldman Sachs Group cut their price target on shares of Targa Resources from $218.00 to $194.00 and set a "buy" rating for the company in a report on Monday, May 5th. Finally, TD Securities began coverage on Targa Resources in a research note on Monday, July 7th. They set a "hold" rating for the company. Three analysts have rated the stock with a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, Targa Resources has an average rating of "Moderate Buy" and a consensus price target of $209.21.

Targa Resources Profile

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil.