TXO Partners (NYSE:TXO) Reaches New 12-Month Low - Should You Sell?

Key Points

• TXO Partners has reached a new 12-month low, trading at $14.68, down from a previous close of $14.96, with a 52-week low of $14.72.
• The company's dividend payout ratio has soared to 580.95%, despite declaring a quarterly dividend of $0.45 per share, reflecting financial challenges.
• Recent insider purchases have been significant, with 3,473,000 shares acquired by insiders totaling approximately $52 million, indicating confidence in the company's long-term potential.

Shares of TXO Partners LP (NYSE:TXO - Get Free Report) reached a new 52-week low during mid-day trading on Friday . The company traded as low as $14.72 and last traded at $14.68, with a volume of 82062 shares trading hands. The stock had previously closed at $14.96.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Stifel Nicolaus assumed coverage on TXO Partners in a report on Wednesday, April 23rd. They issued a "buy" rating and a $20.00 price target for the company. Wall Street Zen raised TXO Partners from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Raymond James Financial reissued a "strong-buy" rating and issued a $24.00 price target (up previously from $23.00) on shares of TXO Partners in a report on Friday, July 25th.

TXO Partners Trading Down 0.1%

The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.97 and a current ratio of 0.97. The business has a fifty day simple moving average of $15.17 and a 200 day simple moving average of $16.93. The company has a market cap of $595.11 million, a P/E ratio of 43.49 and a beta of 0.09.

TXO Partners Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Investors of record on Friday, August 15th will be issued a $0.45 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.80 annualized dividend and a dividend yield of 12.5%. TXO Partners's dividend payout ratio (DPR) is 739.39%.

Insiders Place Their Bets

In other news, Director Keith A. Hutton bought 700,000 shares of the firm's stock in a transaction on Thursday, May 15th. The stock was purchased at an average price of $15.00 per share, for a total transaction of $10,500,000.00. Following the transaction, the director owned 4,820,215 shares in the company, valued at approximately $72,303,225. This trade represents a 16.99% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Luther King, Jr. bought 500,000 shares of the business's stock in a transaction on Thursday, May 15th. The shares were acquired at an average cost of $15.00 per share, for a total transaction of $7,500,000.00. Following the purchase, the insider directly owned 3,061,530 shares in the company, valued at $45,922,950. This represents a 19.52% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders have purchased 3,473,000 shares of company stock worth $52,095,540.

Institutional Trading of TXO Partners

Hedge funds have recently added to or reduced their stakes in the business. CWM LLC bought a new stake in TXO Partners during the 1st quarter valued at $77,000. Apollon Wealth Management LLC bought a new stake in TXO Partners during the 2nd quarter valued at $152,000. Cambridge Investment Research Advisors Inc. bought a new stake in TXO Partners during the 1st quarter valued at $216,000. Boston Partners acquired a new position in shares of TXO Partners during the 2nd quarter valued at $178,000. Finally, Atria Wealth Solutions Inc. acquired a new position in shares of TXO Partners during the 1st quarter valued at $230,000. Institutional investors own 27.44% of the company's stock.

TXO Partners Company Profile

TXO Partners, L.P., an oil and natural gas company, focuses on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. Its acreage positions are concentrated in the Permian Basin of West Texas and New Mexico and the San Juan Basin of New Mexico and Colorado.