Targa Resources, Inc. $TRGP is Adams Natural Resources Fund Inc.'s 9th Largest Position

Key Points

• Adams Natural Resources Fund increased its Targa Resources stake by 33.3% in the first quarter, making TRGP its 9th-largest holding at 2.7% of the portfolio, worth about $23.2 million.
• Targa Resources reported mixed first-quarter results, with EPS of $2.21 and revenue of $4.09 billion coming in below analyst expectations. Despite that, the company remains profitable and analysts still expect full-year EPS of 10.75.
• The company raised its quarterly dividend to $1.25 per share from $1.00, and Wall Street sentiment remains favorable with a consensus rating of “Moderate Buy” and an average price target of $272.73.

Adams Natural Resources Fund Inc. lifted its holdings in Targa Resources, Inc. (NYSE:TRGP - Free Report) by 33.3% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 92,500 shares of the pipeline company's stock after purchasing an additional 23,100 shares during the period. Targa Resources makes up 2.7% of Adams Natural Resources Fund Inc.'s holdings, making the stock its 9th biggest holding. Adams Natural Resources Fund Inc.'s holdings in Targa Resources were worth $23,193,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Woodline Partners LP raised its position in Targa Resources by 40.7% in the 1st quarter. Woodline Partners LP now owns 18,423 shares of the pipeline company's stock valued at $3,693,000 after purchasing an additional 5,327 shares in the last quarter. Focus Partners Wealth grew its position in shares of Targa Resources by 157.4% during the first quarter. Focus Partners Wealth now owns 3,931 shares of the pipeline company's stock worth $788,000 after buying an additional 2,404 shares in the last quarter. Baird Financial Group Inc. increased its stake in shares of Targa Resources by 6.3% during the second quarter. Baird Financial Group Inc. now owns 3,697 shares of the pipeline company's stock worth $644,000 after buying an additional 219 shares during the period. Brown Advisory Inc. increased its stake in shares of Targa Resources by 13.1% during the second quarter. Brown Advisory Inc. now owns 4,521 shares of the pipeline company's stock worth $787,000 after buying an additional 524 shares during the period. Finally, Cerity Partners LLC raised its holdings in Targa Resources by 11.0% in the second quarter. Cerity Partners LLC now owns 31,881 shares of the pipeline company's stock valued at $5,550,000 after acquiring an additional 3,163 shares in the last quarter. 92.13% of the stock is owned by hedge funds and other institutional investors.

Targa Resources Stock Down 0.2%

TRGP stock opened at $272.83 on Friday. The company has a fifty day moving average price of $259.59 and a 200 day moving average price of $229.14. Targa Resources, Inc. has a 12 month low of $144.14 and a 12 month high of $280.00. The company has a market cap of $58.56 billion, a price-to-earnings ratio of 27.59, a price-to-earnings-growth ratio of 1.40 and a beta of 0.72. The company has a debt-to-equity ratio of 5.64, a current ratio of 0.72 and a quick ratio of 0.62.

Targa Resources (NYSE:TRGP - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The pipeline company reported $2.21 earnings per share (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 business had revenue of $4.09 billion for the quarter, compared to analysts' expectations of $4.68 billion. Sell-side analysts expect that Targa Resources, Inc. will post 10.75 earnings per share for the current year.

Targa Resources Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Thursday, April 30th were paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a dividend yield of 1.8%. This is a positive change from Targa Resources's previous quarterly dividend of $1.00. The ex-dividend date was Thursday, April 30th. Targa Resources's payout ratio is currently 50.56%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on TRGP shares. Barclays lifted their price target on shares of Targa Resources from $262.00 to $270.00 and gave the stock an "overweight" rating in a research note on Tuesday. The Goldman Sachs Group increased their price objective on shares of Targa Resources from $242.00 to $268.00 and gave the company a "buy" rating in a research report on Monday, April 20th. UBS Group raised their price objective on shares of Targa Resources from $228.00 to $280.00 and gave the company a "buy" rating in a report on Tuesday, March 24th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $281.00 price objective on shares of Targa Resources in a research report on Tuesday, May 12th. Finally, Erste Group Bank began coverage on shares of Targa Resources in a research note on Thursday. They set a "buy" rating for the company. Seventeen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Targa Resources has an average rating of "Moderate Buy" and a consensus price target of $272.73.

Insider Buying and Selling at Targa Resources

In related 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 transaction of $2,713,687.92. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 1.37% of the company's stock.

Targa Resources 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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