Texas Pacific Land (NYSE:TPL) Stock Falls 10.8% - Here's Why

Key Points

• Texas Pacific Land shares fell 10.8% Wednesday, closing around $296.23 after trading as low as $302.99; trading volume was 84% below its average.
• The article gives no specific catalyst for the sell-off. Analysts maintain a “Moderate Buy” consensus, with an average price target of $639.
• In its latest reported quarter, TPL beat earnings-per-share estimates ($2.23 vs. $2.18) but missed revenue expectations ($246.1 million vs. $249.5 million).

Texas Pacific Land Corporation (NYSE:TPL - Get Free Report)'s share price traded down 10.8% on Wednesday. The company traded as low as $302.99 and last traded at $296.2260. 70,364 shares changed hands during mid-day trading, a decline of 84% from the average daily volume of 428,326 shares. The stock had previously closed at $332.00.

Analyst Ratings Changes

TPL has been the subject of several research reports. Zacks Research upgraded shares of Texas Pacific Land from a "strong sell" rating to a "hold" rating in a research note on Wednesday, July 29th. Weiss Ratings upgraded Texas Pacific Land from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $639.00.

Texas Pacific Land Stock Down 13.2%

The firm has a market capitalization of $19.86 billion, a price-to-earnings ratio of 36.62 and a beta of 0.58. The firm's 50 day moving average is $351.47 and its 200 day moving average is $400.80.

Texas Pacific Land (NYSE:TPL - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $2.23 earnings per share for the quarter, topping the consensus estimate of $2.18 by $0.05. The business had revenue of $246.10 million during the quarter, compared to analyst estimates of $249.50 million. Texas Pacific Land had a return on equity of 35.76% and a net margin of 60.32%. On average, sell-side analysts predict that Texas Pacific Land Corporation will post 8.88 earnings per share for the current year.

Institutional Investors Weigh In On Texas Pacific Land

A number of institutional investors have recently added to or reduced their stakes in the business. Bank of America Corp DE increased its stake in Texas Pacific Land by 143.0% during the first quarter. Bank of America Corp DE now owns 264,740 shares of the financial services provider's stock worth $125,635,000 after acquiring an additional 155,781 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Texas Pacific Land by 42.5% in the 2nd quarter. NewEdge Advisors LLC now owns 40,904 shares of the financial services provider's stock worth $17,901,000 after purchasing an additional 12,207 shares during the period. Bank of New York Mellon Corp increased its position in shares of Texas Pacific Land by 1.3% during the 1st quarter. Bank of New York Mellon Corp now owns 357,379 shares of the financial services provider's stock valued at $169,598,000 after purchasing an additional 4,570 shares during the last quarter. Clare Market Investments LLC bought a new position in shares of Texas Pacific Land during the 1st quarter valued at approximately $14,429,000. Finally, Nykredit A S purchased a new stake in Texas Pacific Land during the 2nd quarter valued at $4,625,000. 59.94% of the stock is owned by institutional investors.

About Texas Pacific Land

Texas Pacific Land Corporation NYSE: TPL is a land and resource management company focused on properties in West Texas, particularly the Permian Basin. The company owns approximately 850,000 acres of land and holds extensive oil and gas royalty interests, making it a significant participant in the region's energy development.

Texas Pacific Land generates revenue through royalties on oil and natural gas produced from its acreage, as well as from land sales, easements, leases and other surface-related activities.

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