Texas Pacific Land (NYSE:TPL) Trading Down 5.4% - Should You Sell?

Key Points

• Texas Pacific Land shares fell 5.4% to about $345, trading well below their 50-day and 200-day moving averages, while volume was 69% below average.
• Analyst sentiment remains cautious: the stock has an overall “Hold” rating, with one Buy, two Holds, and one Sell, despite an average price target of $639.
• The company slightly exceeded quarterly earnings expectations, reporting $2.23 in EPS versus $2.18 expected, and declared a quarterly dividend of $0.60 per share, representing a 0.7% yield.

Texas Pacific Land Corporation (NYSE:TPL - Get Free Report) was down 5.4% on Wednesday . The company traded as low as $345.00 and last traded at $345.27. Approximately 142,526 shares were traded during mid-day trading, a decline of 69% from the average daily volume of 457,937 shares. The stock had previously closed at $364.97.

Analyst Ratings Changes

A number of analysts recently commented on TPL shares. Zacks Research raised 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 research note on Wednesday, July 29th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $639.00.

Texas Pacific Land Stock Down 6.5%

The firm has a market cap of $23.53 billion, a price-to-earnings ratio of 43.47 and a beta of 0.60. The firm has a fifty day moving average price of $392.12 and a 200-day moving average price of $422.61.

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, topping the consensus estimate of $2.18 by $0.05. Texas Pacific Land had a return on equity of 35.76% and a net margin of 60.32%.The firm had revenue of $246.10 million for the quarter, compared to the consensus estimate of $249.50 million. Equities research analysts anticipate that Texas Pacific Land Corporation will post 8.88 earnings per share for the current fiscal year.

Texas Pacific Land Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Tuesday, September 1st. Texas Pacific Land's dividend payout ratio is presently 30.57%.

Insider Activity

In related news, CFO Chris Steddum sold 830 shares of the business's 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 completion of the sale, the chief financial officer directly owned 12,040 shares in the company, valued at approximately $4,819,973.20. The trade was a 6.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 6.90% of the company's stock.

Hedge Funds Weigh In On Texas Pacific Land

A number of hedge funds have recently made changes to their positions in TPL. Daiwa Securities Group Inc. lifted its position in Texas Pacific Land by 200.7% in the fourth quarter. Daiwa Securities Group Inc. now owns 9,450 shares of the financial services provider's stock worth $2,714,000 after purchasing an additional 6,307 shares during the period. Bank of America Corp DE increased its position in shares of Texas Pacific Land by 143.0% during the 1st quarter. Bank of America Corp DE now owns 264,740 shares of the financial services provider's stock valued at $125,635,000 after purchasing an additional 155,781 shares during the period. New York State Teachers Retirement System raised its stake in shares of Texas Pacific Land by 184.1% in the 4th quarter. New York State Teachers Retirement System now owns 38,841 shares of the financial services provider's stock worth $11,156,000 after buying an additional 25,170 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of Texas Pacific Land by 192.8% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 133,731 shares of the financial services provider's stock worth $38,410,000 after buying an additional 88,053 shares in the last quarter. Finally, Schwartz Investment Counsel Inc. lifted its holdings in shares of Texas Pacific Land by 209.7% in the fourth quarter. Schwartz Investment Counsel Inc. now owns 475,104 shares of the financial services provider's stock valued at $136,459,000 after buying an additional 321,683 shares during the period. Institutional investors and hedge funds 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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