Targa Resources (NYSE:TRGP) Hits New 1-Year High - Should You Buy?

Key Points

• Targa Resources hit a new 52-week high, trading as high as $257.84 and rising about 3.7% on the report.
• Analysts have lifted price targets and ratings recently—14 Buys and 3 Holds—giving a consensus rating of "Moderate Buy" with an average target price of $259.93.
• The company raised its quarterly dividend to $1.25 (annualized $5.00, ~1.9% yield) and reported an earnings beat (Q EPS $2.51 vs. $2.35), though it carries a high debt-to-equity ratio (~5.21).

Targa Resources, Inc. (NYSE:TRGP - Get Free Report) shares reached a new 52-week high on Thursday . The company traded as high as $257.84 and last traded at $257.5430, with a volume of 195132 shares traded. The stock had previously closed at $250.14.

Analyst Ratings Changes

Several brokerages recently issued reports on TRGP. Stifel Nicolaus boosted their price target on Targa Resources from $213.00 to $243.00 and gave the company a "buy" rating in a research note on Friday, February 20th. Royal Bank Of Canada boosted their price target on Targa Resources from $260.00 to $270.00 and gave the company an "outperform" rating in a research note on Monday, April 13th. TD Cowen boosted their price target on Targa Resources from $192.00 to $220.00 and gave the company a "hold" rating in a research note on Monday, February 23rd. Citigroup boosted their price target on Targa Resources from $200.00 to $262.00 and gave the company a "buy" rating in a research note on Tuesday, February 24th. Finally, Scotiabank boosted their price target on Targa Resources from $246.00 to $249.00 and gave the company an "outperform" rating in a research note on Monday, April 13th. Fourteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $259.93.

Targa Resources Trading Up 3.7%

The firm has a market capitalization of $55.70 billion, a price-to-earnings ratio of 30.18, a P/E/G ratio of 1.56 and a beta of 0.81. The company has a debt-to-equity ratio of 5.21, a current ratio of 0.67 and a quick ratio of 0.55. The firm's 50-day simple moving average is $240.03 and its 200 day simple moving average is $200.91.

Targa Resources (NYSE:TRGP - Get Free Report) last issued its earnings results on Thursday, February 19th. The pipeline company reported $2.51 EPS for the quarter, topping the consensus estimate of $2.35 by $0.16. The firm had revenue of $4.06 billion during the quarter, compared to the consensus estimate of $4.12 billion. Targa Resources had a return on equity of 65.48% and a net margin of 10.88%. Equities analysts expect that Targa Resources, Inc. will post 10.32 earnings per share for the current year.

Targa Resources Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 30th will be issued a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a dividend yield of 1.9%. This is a boost from Targa Resources's previous quarterly dividend of $1.00. The ex-dividend date is Thursday, April 30th. Targa Resources's dividend payout ratio (DPR) is currently 46.57%.

Insider Activity at Targa Resources

In other news, Director Charles R. Crisp sold 1,359 shares of the company's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $229.30, for a total transaction of $311,618.70. Following the completion of the transaction, the director directly owned 77,094 shares in the company, valued at approximately $17,677,654.20. This represents a 1.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider D. Scott Pryor sold 17,500 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $228.92, for a total value of $4,006,100.00. Following the completion of the transaction, the insider directly owned 31,938 shares of the company's stock, valued at $7,311,246.96. This represents a 35.40% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 104,929 shares of company stock valued at $24,692,134. 1.37% of the stock is owned by company insiders.

Institutional Trading of Targa Resources

A number of institutional investors and hedge funds have recently bought and sold shares of TRGP. Hardy Reed LLC increased its position in Targa Resources by 1.0% during the 1st quarter. Hardy Reed LLC now owns 4,321 shares of the pipeline company's stock valued at $1,083,000 after purchasing an additional 41 shares during the period. Hantz Financial Services Inc. increased its position in Targa Resources by 10.5% during the 4th quarter. Hantz Financial Services Inc. now owns 526 shares of the pipeline company's stock valued at $97,000 after purchasing an additional 50 shares during the period. Steward Partners Investment Advisory LLC increased its position in Targa Resources by 0.7% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 7,455 shares of the pipeline company's stock valued at $1,376,000 after purchasing an additional 51 shares during the period. First Horizon Corp increased its position in Targa Resources by 20.1% during the 4th quarter. First Horizon Corp now owns 340 shares of the pipeline company's stock valued at $63,000 after purchasing an additional 57 shares during the period. Finally, Larson Financial Group LLC grew its holdings in Targa Resources by 4.1% during the 3rd quarter. Larson Financial Group LLC now owns 1,508 shares of the pipeline company's stock worth $253,000 after acquiring an additional 60 shares during the period. 92.13% of the stock is currently owned by institutional investors and hedge funds.

Targa Resources Company Profile

Targa Resources Corporation NYSE: TRGP is a U.S.-focused midstream energy company that provides gathering, processing, transportation, storage and marketing services for natural gas, natural gas liquids (NGLs), and condensate. Its operations span the midstream value chain, including gas gathering systems that collect production from wells, processing plants that separate and recover NGLs and other hydrocarbons, fractionation and purification facilities that prepare NGLs for market, and pipeline and terminal assets that move and store products for producers, refiners and other customers.

The company operates a network of pipelines, processing plants, fractionators and storage facilities that serve producers and consumers across major U.S.

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