Shares of Targa Resources, Inc. (NYSE:TRGP) have been assigned a consensus rating of “Moderate Buy” by seventeen brokerages covering the company, according to MarketBeat. The analysis highlights a favorable outlook, with three analysts suggesting a hold, thirteen recommending a buy, and one indicating a strong buy.
The average twelve-month price target set by these brokerages stands at approximately $210.21. Notable adjustments have been made by various research firms recently. For instance, BMO Capital Markets increased its price target on Targa Resources from $185.00 to $196.00, assigning the stock an “outperform” rating in a note released on November 6, 2023. Meanwhile, Goldman Sachs Group reduced its target from $189.00 to $188.00, maintaining a “buy” recommendation in a report dated November 13, 2023.
Additionally, Morgan Stanley raised its price target from $240.00 to $261.00, categorizing the stock as “overweight” in a report published on November 12, 2023. Following suit, Wells Fargo & Company reaffirmed an “overweight” rating with a revised target price of $205.00, up from $198.00, in a note dated August 8, 2023. Lastly, Royal Bank of Canada boosted its target from $208.00 to $213.00, also giving the stock an “outperform” rating.
Market Performance and Financial Overview
As of last Friday, Targa Resources opened at $170.36. The company’s 50-day moving average is $162.40, while the 200-day moving average stands at $164.73. The stock has experienced a 52-week low of $144.14 and a high of $218.51. Currently, Targa Resources boasts a market capitalization of $36.57 billion, a price-to-earnings (P/E) ratio of 24.10, and a P/E-to-growth (P/E/G) ratio of 0.91.
In its latest quarterly earnings report released on November 5, 2023, Targa Resources reported earnings per share of $2.20, slightly below analysts’ expectations of $2.22. The company generated revenue of $4.15 billion for the quarter, which fell short of the consensus estimate of $4.70 billion. Analysts project Targa Resources will achieve earnings per share of $8.15 for the current fiscal year.
Dividend and Insider Trading Activity
Targa Resources has recently declared a quarterly dividend of $1.00, which was paid on November 17, 2023. Shareholders recorded on October 31, 2023 were eligible for this dividend, marking an annualized payout of $4.00 and resulting in a dividend yield of 2.3%. The ex-dividend date coincided with the record date on October 31, 2023, and the company’s payout ratio stands at 53.19%.
In related developments, insider D. Scott Pryor sold 20,000 shares of Targa Resources on November 14, 2023, at an average price of $172.21, totaling approximately $3.44 million. Following this transaction, Pryor retains 22,139 shares valued at around $3.81 million, reflecting a significant reduction of 47.46% in ownership. This transaction has been disclosed in a filing with the Securities and Exchange Commission.
Institutional investors continue to hold a significant stake in Targa Resources, owning approximately 92.13% of the company’s stock. Recently, Vanguard Group Inc. increased its holdings by 1.5%, now owning 28,382,289 shares valued at around $4.76 billion. Other notable institutional investors include Wellington Management Group LLP, which lifted its position by 9.0%, and Geode Capital Management LLC, which grew its stake by 1.7%.
Targa Resources operates as a key player in North America’s midstream infrastructure sector, owning, operating, acquiring, and developing assets across various segments, including Gathering and Processing, and Logistics and Transportation. The company is actively involved in the gathering, transporting, and selling of natural gas, along with the handling of natural gas liquids and crude oil.
As analysts continue to evaluate the performance and outlook for Targa Resources, the company’s strategic positioning within the energy sector remains a focal point for investors.
