Targa Resources (NYSE:TRGP) Announces Earnings Results

Key Points

• Targa Resources reported earnings of $2.87 EPS for the quarter, exceeding analysts' expectations of $1.95, despite revenues of $4.26 billion being below the anticipated $4.82 billion.
• The company declared a quarterly dividend of $1.00 per share, significantly increasing from its previous dividend of $0.12, representing an annualized dividend of $4.00 with a yield of 2.4%.
• Analysts have issued generally positive reviews of Targa Resources with a consensus rating of "Buy" and an average price target of $208.79.

Targa Resources (NYSE:TRGP - Get Free Report) announced its quarterly earnings data on Thursday. The pipeline company reported $2.87 EPS for the quarter, topping analysts' consensus estimates of $1.95 by $0.92, Zacks reports. The company had revenue of $4.26 billion during the quarter, compared to the consensus estimate of $4.82 billion. Targa Resources had a net margin of 8.99% and a return on equity of 40.21%.

Targa Resources Stock Performance

Targa Resources stock traded down $1.82 during mid-day trading on Friday, reaching $165.07. The company's stock had a trading volume of 2,023,021 shares, compared to its average volume of 1,403,008. The firm has a market cap of $35.81 billion, a price-to-earnings ratio of 23.35, a PEG ratio of 1.09 and a beta of 1.12. The business has a 50 day moving average price of $168.36 and a 200-day moving average price of $178.36. The company has a current ratio of 0.65, a quick ratio of 0.57 and a debt-to-equity ratio of 6.04. Targa Resources has a twelve month low of $135.16 and a twelve month high of $218.51.

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 an increase from Targa Resources's previous quarterly dividend of $0.12. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.4%. Targa Resources's dividend payout ratio is 73.66%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Barclays increased their price target on shares of Targa Resources from $178.00 to $195.00 and gave the company an "overweight" rating in a report on Thursday, July 10th. Scotiabank reissued an "outperform" rating on shares of Targa Resources in a research note on Tuesday, July 15th. TD Cowen assumed coverage on shares of Targa Resources in a research note on Monday, July 7th. They set a "hold" rating and a $192.00 price target on the stock. Mizuho set a $212.00 price target on shares of Targa Resources and gave the stock an "outperform" rating in a research note on Tuesday, May 20th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $205.00 price objective on shares of Targa Resources in a report on Tuesday, July 15th. Two research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, Targa Resources has a consensus rating of "Buy" and a consensus price target of $208.79.

Institutional Investors Weigh In On Targa Resources

A hedge fund recently raised its stake 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 & Exchange Commission. The firm owned 3,931 shares of the pipeline company's stock after purchasing an additional 2,404 shares during the quarter. Focus Partners Wealth's holdings in Targa Resources were worth $788,000 at the end of the most recent quarter. 92.13% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.