Chickasaw Capital Management LLC Has $318.78 Million Stock Position in Targa Resources, Inc. $TRGP

Key Points

• Chickasaw Capital Management LLC increased its stake in Targa Resources by 3.3%, making it the fund's largest position at approximately 12.7% of its portfolio, valued at $318.78 million.
• Several institutional investors, including Vanguard Group Inc. and Wellington Management Group LLP, have also increased their holdings in Targa Resources, indicating strong confidence among major investors.
• Targa Resources reported $2.87 EPS for the recent quarter, exceeding expectations, and announced a dividend increase to $1.00, representing a 2.4% yield.

Chickasaw Capital Management LLC boosted its stake in Targa Resources, Inc. (NYSE:TRGP - Free Report) by 3.3% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,831,228 shares of the pipeline company's stock after purchasing an additional 57,886 shares during the quarter. Targa Resources comprises 12.7% of Chickasaw Capital Management LLC's investment portfolio, making the stock its biggest position. Chickasaw Capital Management LLC owned 0.84% of Targa Resources worth $318,780,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of TRGP. Focus Partners Wealth bought a new position in Targa Resources in the fourth quarter valued at about $273,000. Snowden Capital Advisors LLC grew its holdings in shares of Targa Resources by 2.0% during the fourth quarter. Snowden Capital Advisors LLC now owns 2,652 shares of the pipeline company's stock worth $473,000 after purchasing an additional 53 shares during the last quarter. Tidal Investments LLC grew its holdings in shares of Targa Resources by 14.6% during the fourth quarter. Tidal Investments LLC now owns 15,552 shares of the pipeline company's stock worth $2,776,000 after purchasing an additional 1,980 shares during the last quarter. Two Sigma Investments LP grew its holdings in shares of Targa Resources by 52.9% during the fourth quarter. Two Sigma Investments LP now owns 187,422 shares of the pipeline company's stock worth $33,455,000 after purchasing an additional 64,855 shares during the last quarter. Finally, Two Sigma Advisers LP grew its holdings in shares of Targa Resources by 855.4% during the fourth quarter. Two Sigma Advisers LP now owns 115,600 shares of the pipeline company's stock worth $20,635,000 after purchasing an additional 103,500 shares during the last quarter. Institutional investors own 92.13% of the company's stock.

Targa Resources Trading Down 3.4%

Shares of Targa Resources stock traded down $5.73 during midday trading on Friday, reaching $164.39. The company had a trading volume of 3,499,316 shares, compared to its average volume of 1,249,636. Targa Resources, Inc. has a fifty-two week low of $144.30 and a fifty-two week high of $218.51. The company has a debt-to-equity ratio of 5.93, a current ratio of 0.69 and a quick ratio of 0.56. The stock has a fifty day moving average price of $165.18 and a 200 day moving average price of $170.54. The firm has a market cap of $35.38 billion, a PE ratio of 23.25, a P/E/G ratio of 1.01 and a beta of 1.20.

Targa Resources (NYSE:TRGP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The pipeline company reported $2.87 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $4.26 billion for the quarter, compared to analyst estimates of $4.82 billion. On average, equities analysts anticipate that Targa Resources, Inc. will post 8.15 earnings per share for the current year.

Targa Resources Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Thursday, July 31st were given a dividend of $1.00 per share. The ex-dividend date of this dividend was Thursday, July 31st. This is a positive change from Targa Resources's previous quarterly dividend of $0.12. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.4%. Targa Resources's payout ratio is currently 56.58%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on TRGP shares. Wells Fargo & Company restated an "overweight" rating and set a $205.00 price target (up from $198.00) on shares of Targa Resources in a report on Friday, August 8th. Barclays boosted their price target on Targa Resources from $178.00 to $195.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. JPMorgan Chase & Co. boosted their price target on Targa Resources from $189.00 to $209.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. Wall Street Zen cut Targa Resources from a "buy" rating to a "hold" rating in a report on Saturday, September 13th. Finally, Scotiabank restated an "outperform" rating on shares of Targa Resources in a report on Thursday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $207.27.

Targa Resources Company 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.