Targa Resources (NYSE:TRGP) Hits New 52-Week High Following Analyst Upgrade

Key Points

• Shares of Targa Resources reached a new 52-week high after Morgan Stanley raised its price target from $298 to $327 and kept an overweight rating, with the stock trading as high as $253.69.
• Multiple brokerages (RBC, Wells Fargo, Stifel, UBS) have recently raised targets or reiterated buy/outperform ratings, leaving a MarketBeat consensus of Moderate Buy and an average target of $254.64.
• Insiders sold 104,929 shares worth about $24.7M over the last quarter (insiders now own 1.34%), while the company beat quarterly EPS estimates ($2.51 vs. $2.35) and pays a $1.00 quarterly dividend (annualized yield ~1.6%).

Shares of Targa Resources, Inc. (NYSE:TRGP - Get Free Report) reached a new 52-week high during trading on Tuesday after Morgan Stanley raised their price target on the stock from $298.00 to $327.00. Morgan Stanley currently has an overweight rating on the stock. Targa Resources traded as high as $253.69 and last traded at $253.6810, with a volume of 233229 shares trading hands. The stock had previously closed at $245.65.

Other equities research analysts also recently issued research reports about the stock. Royal Bank Of Canada upped their price target on shares of Targa Resources from $218.00 to $260.00 and gave the company an "outperform" rating in a research report on Friday, February 27th. BMO Capital Markets restated an "outperform" rating and issued a $241.00 price target on shares of Targa Resources in a research report on Friday, February 20th. Wells Fargo & Company upped their price target on shares of Targa Resources from $248.00 to $264.00 and gave the company an "overweight" rating in a research report on Friday, March 13th. Stifel Nicolaus upped their price target on shares of Targa Resources from $213.00 to $243.00 and gave the company a "buy" rating in a research report on Friday, February 20th. Finally, UBS Group upped their price target on shares of Targa Resources from $228.00 to $280.00 and gave the company a "buy" rating in a research report on Tuesday, March 24th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Targa Resources has an average rating of "Moderate Buy" and a consensus target price of $254.64.

Insider Buying and Selling

In other Targa Resources news, insider Patrick J. Mcdonie sold 31,537 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $239.36, for a total value of $7,548,696.32. Following the completion of the sale, the insider owned 305,163 shares in the company, valued at $73,043,815.68. This represents a 9.37% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Robert Muraro sold 24,589 shares of the stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $241.34, for a total transaction of $5,934,309.26. Following the completion of the sale, the insider owned 197,401 shares of the company's stock, valued at approximately $47,640,757.34. The trade was a 11.08% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 104,929 shares of company stock worth $24,692,134. Insiders own 1.34% of the company's stock.

Institutional Investors Weigh In On Targa Resources

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Alps Advisors Inc. increased its stake in shares of Targa Resources by 5.5% during the 3rd quarter. Alps Advisors Inc. now owns 143,904 shares of the pipeline company's stock worth $24,110,000 after purchasing an additional 7,497 shares during the last quarter. Korea Investment CORP increased its stake in shares of Targa Resources by 37.4% during the 3rd quarter. Korea Investment CORP now owns 260,760 shares of the pipeline company's stock worth $43,688,000 after purchasing an additional 70,998 shares during the last quarter. Commonwealth Equity Services LLC increased its stake in shares of Targa Resources by 137.9% during the 3rd quarter. Commonwealth Equity Services LLC now owns 66,636 shares of the pipeline company's stock worth $11,164,000 after purchasing an additional 38,626 shares during the last quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT increased its stake in shares of Targa Resources by 2.4% during the 3rd quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 682,300 shares of the pipeline company's stock worth $114,313,000 after purchasing an additional 16,000 shares during the last quarter. Finally, Envestnet Asset Management Inc. increased its stake in shares of Targa Resources by 5.0% during the 3rd quarter. Envestnet Asset Management Inc. now owns 484,462 shares of the pipeline company's stock worth $81,167,000 after purchasing an additional 22,969 shares during the last quarter. Hedge funds and other institutional investors own 92.13% of the company's stock.

Targa Resources Trading Up 1.7%

The company's 50 day moving average price is $230.01 and its 200 day moving average price is $192.19. The company has a market cap of $53.66 billion, a price-to-earnings ratio of 29.08, a price-to-earnings-growth ratio of 1.60 and a beta of 0.81. The company has a debt-to-equity ratio of 5.21, a quick ratio of 0.55 and a current ratio of 0.67.

Targa Resources (NYSE:TRGP - Get Free Report) last announced its quarterly 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. Targa Resources had a net margin of 10.88% and a return on equity of 65.48%. The company had revenue of $4.06 billion for the quarter, compared to analyst estimates of $4.12 billion. Research analysts anticipate that Targa Resources, Inc. will post 8.15 EPS for the current year.

Targa Resources Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were given a $1.00 dividend. This represents a $4.00 annualized dividend and a yield of 1.6%. The ex-dividend date was Friday, January 30th. Targa Resources's dividend payout ratio (DPR) is currently 46.57%.

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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