TXO Partners (NYSE:TXO) Reaches New 1-Year High - Still a Buy?

Key Points

• TXO Partners shares reached a new 52-week high of $14.76 and last traded at $14.67, while analysts maintain a consensus “Moderate Buy” rating with an $18.50 price target.
• The company reported significantly better-than-expected quarterly results, posting $1.07 in EPS versus the $0.11 estimate and $150.87 million in revenue compared with expectations of $116.24 million.
• TXO increased its quarterly dividend to $0.40, or $1.60 annually, representing an approximately 11% yield; insiders have also purchased 1.1 million shares over the past quarter.

TXO Partners LP (NYSE:TXO - Get Free Report) shares hit a new 52-week high during trading on Thursday . The company traded as high as $14.76 and last traded at $14.67, with a volume of 109499 shares trading hands. The stock had previously closed at $14.05.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Raymond James Financial reiterated a "strong-buy" rating on shares of TXO Partners in a research report on Wednesday, April 29th. Wall Street Zen upgraded shares of TXO Partners from a "sell" rating to a "buy" rating in a report on Saturday, August 8th. Weiss Ratings upgraded shares of TXO Partners from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, August 21st. Finally, Zacks Research raised TXO Partners from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $18.50.

TXO Partners Price Performance

The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.42. The stock has a market cap of $803.80 million, a price-to-earnings ratio of -18.95 and a beta of 0.04. The company has a 50 day simple moving average of $13.20 and a 200-day simple moving average of $12.87.

TXO Partners (NYSE:TXO - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $1.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.96. The business had revenue of $150.87 million for the quarter, compared to analyst estimates of $116.24 million. TXO Partners had a negative return on equity of 5.59% and a negative net margin of 9.23%. Research analysts expect that TXO Partners LP will post 0.58 EPS for the current year.

TXO Partners Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 21st. Shareholders of record on Friday, August 14th were paid a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 11.0%. The ex-dividend date was Friday, August 14th. This is an increase from TXO Partners's previous quarterly dividend of $0.36. TXO Partners's dividend payout ratio (DPR) is presently -207.79%.

Insider Buying and Selling

In other TXO Partners news, Director Bob R. Simpson acquired 125,000 shares of TXO Partners stock in a transaction dated Thursday, August 13th. The stock was bought at an average cost of $14.32 per share, for a total transaction of $1,790,000.00. Following the purchase, the director directly owned 9,500,000 shares in the company, valued at approximately $136,040,000. This represents a 1.33% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Over the last quarter, insiders have bought 1,100,000 shares of company stock worth $15,129,522.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TXO. Allied Private Wealth LLC bought a new stake in shares of TXO Partners during the 2nd quarter worth approximately $30,000. Royal Bank of Canada lifted its stake in TXO Partners by 100.2% in the fourth quarter. Royal Bank of Canada now owns 2,603 shares of the company's stock valued at $28,000 after acquiring an additional 1,303 shares during the last quarter. State of Wyoming bought a new position in shares of TXO Partners in the 2nd quarter valued at about $45,000. Kestra Advisory Services LLC acquired a new position in shares of TXO Partners during the 4th quarter worth about $49,000. Finally, Corient Private Wealth LLC bought a new stake in shares of TXO Partners in the 2nd quarter valued at about $150,000. 27.44% of the stock is owned by institutional investors and hedge funds.

About TXO Partners

TXO Partners is an independent upstream oil and natural gas company focused on the acquisition, development and production of unconventional resource plays in the United States. The firm holds working interests in producing and non-producing acreage, primarily targeting liquids-rich areas to optimize cash flow generation and capital efficiency. Its core business involves identifying under-developed assets, engineering cost-effective drilling programs and applying advanced completion techniques to enhance well performance.

The company’s operations are concentrated in key domestic basins, where horizontal drilling and multi-stage fracturing have unlocked significant reserves.

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