Targa Resources (NYSE:TRGP) Reaches New 52-Week High - What's Next?

Key Points

• Targa Resources shares hit a new 52-week high, reaching as high as $275.60 intraday before closing near $275, after rising about 1.1% on the day.
• Analysts remain generally positive on the stock, with 14 Buy ratings and 3 Hold ratings; the average price target is $266.36, while some firms recently lifted targets and reiterated outperform views.
• The company recently raised its quarterly dividend to $1.25 per share from $1.00, though its latest earnings missed Wall Street estimates on both EPS and revenue.

Shares of Targa Resources, Inc. (NYSE:TRGP - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $275.60 and last traded at $274.9990, with a volume of 999676 shares. The stock had previously closed at $271.99.

Wall Street Analyst Weigh In

TRGP has been the subject of a number of analyst reports. Weiss Ratings upgraded Targa Resources from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, January 29th. Scotiabank increased their price target on Targa Resources from $249.00 to $257.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 12th. TD Cowen increased their price target on Targa Resources from $236.00 to $245.00 and gave the stock a "hold" rating in a research note on Monday, May 11th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $281.00 price target on shares of Targa Resources in a research note on Tuesday, May 12th. Finally, Stifel Nicolaus set a $268.00 price target on Targa Resources in a research note on Friday, May 8th. Fourteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $266.36.

Targa Resources Trading Up 1.1%

The stock has a market cap of $59.03 billion, a PE ratio of 27.81, a price-to-earnings-growth ratio of 1.70 and a beta of 0.75. The stock has a 50-day moving average price of $245.52 and a two-hundred day moving average price of $209.61. The company has a debt-to-equity ratio of 5.64, a current ratio of 0.72 and a quick ratio of 0.62.

Targa Resources (NYSE:TRGP - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The pipeline company reported $2.21 earnings per share for the quarter, missing analysts' consensus estimates of $2.48 by ($0.27). The firm had revenue of $4.09 billion for the quarter, compared to analysts' expectations of $4.68 billion. Targa Resources had a net margin of 12.87% and a return on equity of 71.00%. Sell-side analysts forecast that Targa Resources, Inc. will post 10.66 earnings per share for the current fiscal year.

Targa Resources Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Thursday, April 30th were given a dividend of $1.25 per share. The ex-dividend date was Thursday, April 30th. This is a positive change from Targa Resources's previous quarterly dividend of $1.00. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.8%. Targa Resources's dividend payout ratio (DPR) is 50.56%.

Insider Activity

In related news, insider D. Scott Pryor sold 17,500 shares of Targa Resources stock in a transaction dated Wednesday, February 25th. The stock was 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 owned 31,938 shares in the company, valued at approximately $7,311,246.96. This trade represents a 35.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Robert Muraro sold 24,589 shares of Targa Resources stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $241.34, for a total value of $5,934,309.26. Following the completion of the transaction, the insider owned 197,401 shares of the company's stock, valued at approximately $47,640,757.34. This represents a 11.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 115,531 shares of company stock valued at $27,405,821. 1.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC grew its position in Targa Resources by 143.6% in the first quarter. Janus Henderson Group PLC now owns 35,225 shares of the pipeline company's stock worth $8,833,000 after acquiring an additional 20,763 shares in the last quarter. Arkadios Wealth Advisors grew its position in Targa Resources by 175.4% in the first quarter. Arkadios Wealth Advisors now owns 4,505 shares of the pipeline company's stock worth $1,130,000 after acquiring an additional 2,869 shares in the last quarter. Encore Global Management LP purchased a new position in Targa Resources in the first quarter worth about $501,000. Sunbelt Securities Inc. grew its position in Targa Resources by 13.3% in the first quarter. Sunbelt Securities Inc. now owns 1,199 shares of the pipeline company's stock worth $301,000 after acquiring an additional 141 shares in the last quarter. Finally, Amundi grew its position in Targa Resources by 9.3% in the first quarter. Amundi now owns 2,006,131 shares of the pipeline company's stock worth $502,999,000 after acquiring an additional 171,187 shares in the last quarter. Hedge funds and other institutional investors own 92.13% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.