TXO Partners (NYSE:TXO) Stock Price Up 1.2% - Time to Buy?

Key Points

• TXO Partners shares rose about 1.2% to $12.26 on Thursday with volume up ~58%, and analysts hold an average rating of “Moderate Buy” with an average price target of $18.50, implying notable upside.
• The company reported a material earnings miss — EPS -$0.57 vs. $0.10 expected — despite revenue beating estimates, and reflects negative profitability metrics (negative net margin/ROE and a negative P/E).
• TXO recently paid a quarterly dividend of $0.30 (a 9.8% yield) amid a reported dividend cut and a deeply negative payout ratio (-279%), while insiders have been net sellers (about 92,854 shares sold in the last 90 days).

TXO Partners LP (NYSE:TXO - Get Free Report)'s share price rose 1.2% during trading on Thursday . The stock traded as high as $12.38 and last traded at $12.2550. Approximately 250,078 shares traded hands during mid-day trading, an increase of 58% from the average daily volume of 158,607 shares. The stock had previously closed at $12.11.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on TXO shares. Raymond James Financial set a $18.00 price target on TXO Partners in a report on Tuesday, January 27th. Stifel Nicolaus upped their price target on shares of TXO Partners from $18.00 to $19.00 and gave the stock a "buy" rating in a research note on Friday, March 6th. Wall Street Zen raised shares of TXO Partners from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of TXO Partners in a research note on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, TXO Partners has an average rating of "Moderate Buy" and an average target price of $18.50.

TXO Partners Price Performance

The firm has a 50-day moving average of $12.49 and a 200-day moving average of $12.27. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.62 and a current ratio of 0.62. The firm has a market capitalization of $676.97 million, a P/E ratio of -28.50 and a beta of 0.04.

TXO Partners (NYSE:TXO - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported ($0.57) EPS for the quarter, missing analysts' consensus estimates of $0.10 by ($0.67). TXO Partners had a negative return on equity of 2.03% and a negative net margin of 5.39%.The business had revenue of $125.93 million during the quarter, compared to the consensus estimate of $111.09 million. As a group, analysts predict that TXO Partners LP will post 0.6 EPS for the current year.

TXO Partners Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 10th were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 9.8%. The ex-dividend date was Tuesday, March 10th. TXO Partners's dividend payout ratio (DPR) is presently -279.07%.

Insiders Place Their Bets

In other TXO Partners news, CEO Gary D. Simpson sold 27,234 shares of the company's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $12.38, for a total transaction of $337,156.92. Following the transaction, the chief executive officer owned 581,018 shares in the company, valued at approximately $7,193,002.84. This represents a 4.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Scott T. Agosta sold 10,689 shares of the company's stock in a transaction dated Saturday, January 31st. The shares were sold at an average price of $12.07, for a total transaction of $129,016.23. Following the transaction, the chief accounting officer owned 205,474 shares in the company, valued at $2,480,071.18. This represents a 4.94% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 92,854 shares of company stock valued at $1,137,633.

Institutional Investors Weigh In On TXO Partners

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC bought a new stake in TXO Partners in the 2nd quarter worth approximately $380,000. M&T Bank Corp raised its stake in TXO Partners by 33.3% during the 2nd quarter. M&T Bank Corp now owns 20,000 shares of the company's stock valued at $301,000 after buying an additional 5,000 shares during the last quarter. First Trust Advisors LP bought a new position in shares of TXO Partners during the 2nd quarter valued at $5,830,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of TXO Partners by 5.3% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 715,867 shares of the company's stock valued at $10,767,000 after buying an additional 35,990 shares during the period. Finally, Raymond James Financial Inc. boosted its stake in shares of TXO Partners by 39.1% in the 2nd quarter. Raymond James Financial Inc. now owns 304,980 shares of the company's stock worth $4,587,000 after buying an additional 85,684 shares during the last quarter. Hedge funds and other institutional investors own 27.44% of the company's stock.

TXO Partners Company Profile

TXO Partners is an independent upstream oil and natural gas company focused on the acquisition, development and production of unconventional resource plays in the United States. The firm holds working interests in producing and non-producing acreage, primarily targeting liquids-rich areas to optimize cash flow generation and capital efficiency. Its core business involves identifying under-developed assets, engineering cost-effective drilling programs and applying advanced completion techniques to enhance well performance.

The company’s operations are concentrated in key domestic basins, where horizontal drilling and multi-stage fracturing have unlocked significant reserves.

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