Texas Pacific Land (NYSE:TPL) Stock Price Up 6% - Should You Buy?

Key Points

• Texas Pacific Land shares rose 6% to about $395.42, although trading volume was 88% below the average session volume. The stock has a $26.09 billion market capitalization, a P/E ratio of 48.22, and trades below its 200-day moving average.
• Analyst sentiment remains cautious: the consensus rating is “Hold”, based on one Buy, two Holds, and one Sell, despite a consensus price target of $639. Zacks Research recently upgraded the stock from “Strong Sell” to “Hold.”
• The company slightly beat quarterly EPS expectations with $2.23 versus $2.18, but revenue of $246.1 million fell short of the $249.5 million estimate. Texas Pacific Land also declared a $0.60 quarterly dividend, yielding about 0.6%, while its CFO recently sold shares under a pre-arranged trading plan.

Texas Pacific Land Corporation (NYSE:TPL - Get Free Report)'s share price shot up 6% during mid-day trading on Thursday . The company traded as high as $390.29 and last traded at $395.4180. Approximately 52,652 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 453,570 shares. The stock had previously closed at $373.18.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Zacks Research upgraded shares of Texas Pacific Land from a "strong sell" rating to a "hold" rating in a research note on Wednesday, July 29th. Weiss Ratings reissued a "hold (c+)" rating on shares of Texas Pacific Land in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $639.00.

Texas Pacific Land Trading Up 1.4%

The stock has a 50 day simple moving average of $387.94 and a 200 day simple moving average of $423.04. The stock has a market cap of $26.09 billion, a P/E ratio of 48.22 and a beta of 0.60.

Texas Pacific Land (NYSE:TPL - Get Free Report) last released its earnings results on Wednesday, August 5th. The financial services provider reported $2.23 earnings per share for the quarter, beating analysts' consensus estimates of $2.18 by $0.05. The firm had revenue of $246.10 million during the quarter, compared to the consensus estimate of $249.50 million. Texas Pacific Land had a return on equity of 35.76% and a net margin of 60.32%. Equities analysts anticipate that Texas Pacific Land Corporation will post 8.88 earnings per share for the current year.

Texas Pacific Land Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Tuesday, September 1st. Texas Pacific Land's payout ratio is 30.57%.

Insiders Place Their Bets

In related news, CFO Chris Steddum sold 830 shares of Texas Pacific Land stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $400.33, for a total value of $332,273.90. Following the transaction, the chief financial officer directly owned 12,040 shares of the company's stock, valued at $4,819,973.20. This trade represents a 6.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 6.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Texas Pacific Land

Several hedge funds and other institutional investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC boosted its stake in Texas Pacific Land by 21.4% in the second quarter. EverSource Wealth Advisors LLC now owns 68 shares of the financial services provider's stock valued at $72,000 after buying an additional 12 shares in the last quarter. Sei Investments Co. boosted its stake in shares of Texas Pacific Land by 1.1% in the 3rd quarter. Sei Investments Co. now owns 1,909 shares of the financial services provider's stock valued at $1,782,000 after purchasing an additional 20 shares in the last quarter. Larson Financial Group LLC grew its holdings in shares of Texas Pacific Land by 5.4% during the 3rd quarter. Larson Financial Group LLC now owns 410 shares of the financial services provider's stock valued at $383,000 after purchasing an additional 21 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Texas Pacific Land by 1.3% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,916 shares of the financial services provider's stock worth $1,789,000 after purchasing an additional 24 shares in the last quarter. Finally, Van ECK Associates Corp increased its position in Texas Pacific Land by 0.5% during the 3rd quarter. Van ECK Associates Corp now owns 4,685 shares of the financial services provider's stock worth $4,374,000 after purchasing an additional 24 shares in the last quarter. Institutional investors own 59.94% of the company's stock.

About Texas Pacific Land

Texas Pacific Land Corporation NYSE: TPL is a Texas-based land management company that derives revenue from the ownership and stewardship of large tracts of land and associated mineral rights in West Texas. The company's origins trace to 19th century land grants associated with the Texas and Pacific Railway; over time those grant holdings have been retained and managed as a standalone corporate asset base. Texas Pacific Land is publicly listed and operates as a landowner and resource manager rather than as a traditional oil and gas producer.

The company's primary activities include management of surface rights and leasing of land for energy and other commercial uses, administration of mineral royalty interests, and provision of water and related services to industrial customers.

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