Texas Pacific Land (NYSE:TPL) Trading Down 6.9% - Here's What Happened

Key Points

• Shares fell 6.9% to $441.91 on Wednesday, with about 314,069 shares traded (a 39% drop from average) after a prior close of $474.56.
• The company beat quarterly estimates (EPS $1.79 vs. $1.73; revenue $211.6M vs. $204M) and raised its quarterly dividend to $0.60 (annualized $2.40, ~0.5% yield).
• Analysts are mixed but show a consensus "Hold" with a $639 target; KeyCorp upgraded the stock to "overweight" and also set a $639 price target.

Shares of Texas Pacific Land Corporation (NYSE:TPL - Get Free Report) dropped 6.9% on Wednesday . The stock traded as low as $441.83 and last traded at $441.9130. Approximately 314,069 shares changed hands during trading, a decline of 39% from the average daily volume of 513,352 shares. The stock had previously closed at $474.56.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on TPL shares. Weiss Ratings restated a "hold (c)" rating on shares of Texas Pacific Land in a research report on Friday. Zacks Research upgraded shares of Texas Pacific Land to a "hold" rating in a research note on Wednesday, December 3rd. Wall Street Zen raised shares of Texas Pacific Land from a "sell" rating to a "hold" rating in a report on Sunday, March 15th. Finally, KeyCorp raised their price target on shares of Texas Pacific Land from $350.00 to $639.00 and gave the company an "overweight" rating in a research report on Monday, February 23rd. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $639.00.

Texas Pacific Land Trading Down 6.7%

The company has a market cap of $30.54 billion, a price-to-earnings ratio of 63.37 and a beta of 0.82. The business has a fifty day moving average of $458.26 and a two-hundred day moving average of $359.82.

Texas Pacific Land (NYSE:TPL - Get Free Report) last posted its quarterly earnings data on Wednesday, February 18th. The financial services provider reported $1.79 EPS for the quarter, beating analysts' consensus estimates of $1.73 by $0.06. The business had revenue of $211.60 million during the quarter, compared to analysts' expectations of $204.00 million. Texas Pacific Land had a return on equity of 36.18% and a net margin of 60.31%.

Texas Pacific Land Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were given a dividend of $0.60 per share. This is a boost from Texas Pacific Land's previous quarterly dividend of $0.53. This represents a $2.40 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Monday, March 2nd. Texas Pacific Land's dividend payout ratio (DPR) is currently 34.38%.

Insider Buying and Selling at Texas Pacific Land

In related news, CAO Stephanie Buffington sold 1,608 shares of the company's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $503.00, for a total transaction of $808,824.00. Following the completion of the transaction, the chief accounting officer owned 2,133 shares in the company, valued at $1,072,899. This represents a 42.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Donna E. Epps bought 895 shares of Texas Pacific Land stock in a transaction on Wednesday, February 25th. The shares were purchased at an average cost of $510.45 per share, with a total value of $456,852.75. Following the acquisition, the director directly owned 2,921 shares of the company's stock, valued at approximately $1,491,024.45. The trade was a 44.18% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 6.90% of the company's stock.

Institutional Trading of Texas Pacific Land

Several large investors have recently bought and sold shares of TPL. Dimensional Fund Advisors LP lifted its holdings in Texas Pacific Land by 13.1% in the third quarter. Dimensional Fund Advisors LP now owns 147,557 shares of the financial services provider's stock valued at $137,747,000 after acquiring an additional 17,107 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its position in shares of Texas Pacific Land by 187.5% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 37,764 shares of the financial services provider's stock worth $11,095,000 after purchasing an additional 24,629 shares during the last quarter. Nordea Investment Management AB raised its holdings in Texas Pacific Land by 200.6% in the 4th quarter. Nordea Investment Management AB now owns 3,024 shares of the financial services provider's stock valued at $873,000 after buying an additional 2,018 shares during the period. Corsicana & Co. lifted its position in Texas Pacific Land by 200.0% in the fourth quarter. Corsicana & Co. now owns 5,070 shares of the financial services provider's stock valued at $1,456,000 after buying an additional 3,380 shares during the last quarter. Finally, Westerkirk Capital Inc. purchased a new position in Texas Pacific Land during the second quarter worth about $2,229,000. Hedge funds and other institutional investors own 59.94% of the company's stock.

Texas Pacific Land Company Profile

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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