Targa Resources, Inc. (NYSE:TRGP) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Targa Resources has received an average consensus rating of “Moderate Buy” from analysts across eighteen brokerages, with a target price averaging $209.00.
• The company reported earnings of $2.87 per share, significantly exceeding analyst estimates of $1.95, despite lower than expected revenue of $4.26 billion.
• Targa has announced an increase in its quarterly dividend to $1.00 per share, up from $0.12, indicating a strong commitment to returning value to shareholders.

Targa Resources, Inc. (NYSE:TRGP - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the eighteen brokerages that are currently covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and two have given a strong buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $209.00.

A number of research firms recently issued reports on TRGP. The Goldman Sachs Group reduced their target price on Targa Resources from $218.00 to $194.00 and set a "buy" rating on the stock in a research note on Monday, May 5th. Citigroup reduced their target price on Targa Resources from $227.00 to $197.00 and set a "buy" rating on the stock in a research note on Friday, May 9th. TD Securities began coverage on Targa Resources in a research note on Monday, July 7th. They issued a "hold" rating on the stock. TD Cowen began coverage on Targa Resources in a research note on Monday, July 7th. They issued a "hold" rating and a $192.00 target price on the stock. Finally, Royal Bank Of Canada reissued an "outperform" rating and set a $208.00 price target (up previously from $205.00) on shares of Targa Resources in a research note on Tuesday.

Hedge Funds Weigh In On Targa Resources

Several large investors have recently modified their holdings of TRGP. Cornerstone Planning Group LLC lifted its holdings in Targa Resources by 578.9% in the first quarter. Cornerstone Planning Group LLC now owns 129 shares of the pipeline company's stock worth $26,000 after acquiring an additional 110 shares during the last quarter. Colonial Trust Co SC lifted its holdings in Targa Resources by 5,400.0% in the fourth quarter. Colonial Trust Co SC now owns 165 shares of the pipeline company's stock worth $29,000 after acquiring an additional 162 shares during the last quarter. Cary Street Partners Financial LLC bought a new position in Targa Resources in the fourth quarter worth about $31,000. Ameriflex Group Inc. bought a new position in Targa Resources in the fourth quarter worth about $31,000. Finally, Mascagni Wealth Management Inc. bought a new position in Targa Resources in the fourth quarter worth about $32,000. Institutional investors own 92.13% of the company's stock.

Targa Resources Stock Performance

TRGP opened at $166.69 on Thursday. The stock has a market cap of $35.87 billion, a P/E ratio of 23.58, a P/E/G ratio of 1.05 and a beta of 1.12. 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's 50 day simple moving average is $168.61 and its 200 day simple moving average is $177.46. Targa Resources has a 1-year low of $136.60 and a 1-year high of $218.51.

Targa Resources (NYSE:TRGP - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The pipeline company reported $2.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.95 by $0.92. The business had revenue of $4.26 billion for the quarter, compared to analysts' expectations of $4.82 billion. Targa Resources had a return on equity of 43.35% and a net margin of 8.99%. As a group, equities analysts anticipate that Targa Resources will post 8.15 EPS for the current fiscal year.

Targa Resources Increases Dividend

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

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.

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