Targa Resources, Inc. (NYSE:TRGP) to Issue Dividend Increase - $1.00 Per Share

Targa Resources, Inc. (NYSE:TRGP - Get Free Report) announced a quarterly dividend on Thursday, July 10th, RTT News reports. Investors of record on Thursday, July 31st will be given a dividend of 1.00 per share by the pipeline company on Friday, August 15th. This represents a $4.00 annualized dividend and a yield of 2.33%. This is a 733.3% increase from Targa Resources's previous quarterly dividend of $0.12.

Targa Resources has a payout ratio of 43.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Targa Resources to earn $9.72 per share next year, which means the company should continue to be able to cover its $4.00 annual dividend with an expected future payout ratio of 41.2%.

Targa Resources Stock Up 0.7%

Targa Resources stock traded up $1.26 during midday trading on Friday, hitting $172.00. 429,402 shares of the stock were exchanged, compared to its average volume of 1,837,293. Targa Resources has a 1 year low of $122.56 and a 1 year high of $218.51. The firm has a market cap of $37.31 billion, a P/E ratio of 31.67, a P/E/G ratio of 0.61 and a beta of 1.07. The company has a debt-to-equity ratio of 6.04, a current ratio of 0.65 and a quick ratio of 0.57. The company has a 50 day moving average price of $166.34 and a two-hundred day moving average price of $182.08.

Targa Resources (NYSE:TRGP - Get Free Report) last released its earnings results on Thursday, May 1st. The pipeline company reported $0.91 earnings per share for the quarter, missing the consensus estimate of $2.04 by ($1.13). The company had revenue of $4.56 billion during the quarter, compared to the consensus estimate of $5.01 billion. Targa Resources had a return on equity of 30.48% and a net margin of 7.35%. On average, sell-side analysts predict that Targa Resources will post 8.15 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Targa Resources

An institutional investor recently raised its position in Targa Resources stock. Focus Partners Wealth increased its stake in Targa Resources, Inc. (NYSE:TRGP - Free Report) by 157.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,931 shares of the pipeline company's stock after acquiring an additional 2,404 shares during the period. Focus Partners Wealth's holdings in Targa Resources were worth $788,000 at the end of the most recent reporting period. Institutional investors own 92.13% of the company's stock.

Wall Street Analysts Forecast Growth

TRGP has been the subject of several research analyst reports. TD Cowen initiated coverage on shares of Targa Resources in a research report on Monday. They issued a "hold" rating and a $192.00 target price for the company. Scotiabank boosted their target price on shares of Targa Resources from $193.00 to $197.00 and gave the stock a "sector outperform" rating in a research report on Thursday, June 5th. JPMorgan Chase & Co. boosted their target price on shares of Targa Resources from $189.00 to $209.00 and gave the stock an "overweight" rating in a research report on Thursday. Mizuho set a $212.00 target price on shares of Targa Resources and gave the stock an "outperform" rating in a research report on Tuesday, May 20th. Finally, UBS Group dropped their target price on shares of Targa Resources from $259.00 to $228.00 and set a "buy" rating for the company in a research report on Thursday, May 15th. Two research 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 data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $209.57.

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.