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

Key Points

• Targa Resources, Inc. has received a "Moderate Buy" consensus rating from analysts, with 14 out of 18 analysts recommending a buy and one a strong buy.
• The company has recently increased its quarterly dividend from $0.12 to $1.00, representing a 2.5% yield and signaling positive financial growth.
• Targa Resources reported earnings of $2.87 per share in its latest quarter, significantly exceeding the consensus estimate of $1.95.

Shares of Targa Resources, Inc. (NYSE:TRGP - Get Free Report) have earned a consensus rating of "Moderate Buy" from the eighteen analysts that are currently covering the stock, Marketbeat reports. Three research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $207.2667.

Several brokerages have recently weighed in on TRGP. Wall Street Zen upgraded shares of Targa Resources from a "hold" rating to a "buy" rating in a report on Sunday, September 21st. TD Cowen began coverage on shares of Targa Resources in a report on Monday, July 7th. They set a "hold" rating and a $192.00 price objective on the stock. JPMorgan Chase & Co. increased their price objective on shares of Targa Resources from $189.00 to $209.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. BMO Capital Markets initiated coverage on shares of Targa Resources in a report on Friday, September 19th. They set an "outperform" rating and a $185.00 price objective on the stock. Finally, Cfra Research upgraded shares of Targa Resources to a "hold" rating in a report on Friday, August 8th.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Ritholtz Wealth Management raised its holdings in Targa Resources by 1.3% in the first quarter. Ritholtz Wealth Management now owns 4,942 shares of the pipeline company's stock valued at $991,000 after buying an additional 62 shares during the period. Stratos Wealth Advisors LLC grew its position in Targa Resources by 3.6% in the first quarter. Stratos Wealth Advisors LLC now owns 1,776 shares of the pipeline company's stock valued at $356,000 after acquiring an additional 62 shares in the last quarter. State of Wyoming grew its position in Targa Resources by 3.2% in the second quarter. State of Wyoming now owns 2,076 shares of the pipeline company's stock valued at $361,000 after acquiring an additional 64 shares in the last quarter. UMB Bank n.a. grew its position in Targa Resources by 11.9% in the second quarter. UMB Bank n.a. now owns 658 shares of the pipeline company's stock valued at $115,000 after acquiring an additional 70 shares in the last quarter. Finally, QRG Capital Management Inc. grew its position in Targa Resources by 0.8% in the second quarter. QRG Capital Management Inc. now owns 9,296 shares of the pipeline company's stock valued at $1,618,000 after acquiring an additional 72 shares in the last quarter. Hedge funds and other institutional investors own 92.13% of the company's stock.

Targa Resources Price Performance

NYSE:TRGP opened at $162.80 on Friday. The firm has a market cap of $35.03 billion, a price-to-earnings ratio of 23.03, a price-to-earnings-growth ratio of 1.00 and a beta of 1.12. The company has a current ratio of 0.69, a quick ratio of 0.56 and a debt-to-equity ratio of 5.93. The company's 50-day moving average is $165.56 and its two-hundred day moving average is $169.55. Targa Resources has a 12-month low of $150.00 and a 12-month high of $218.51.

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

Targa Resources Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Thursday, July 31st were issued a $1.00 dividend. The ex-dividend date was 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 yield of 2.5%. Targa Resources's payout ratio is 56.58%.

About Targa Resources

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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