Targa Resources (NYSE:TRGP) Sets New 1-Year High – Time to Buy?

Targa Resources, Inc. (NYSE:TRGP)’s share price hit a new 52-week high on Wednesday . The company traded as high as $262.32 and last traded at $263.1220, with a volume of 776765 shares traded. The stock had previously closed at $255.16.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on TRGP shares. Mizuho raised their target price on Targa Resources from $207.00 to $260.00 and gave the company an “outperform” rating in a research report on Thursday, March 19th. UBS Group increased their price target on Targa Resources from $228.00 to $280.00 and gave the stock a “buy” rating in a research report on Tuesday, March 24th. Weiss Ratings raised Targa Resources from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, January 29th. Morgan Stanley boosted their price objective on Targa Resources from $327.00 to $331.00 and gave the company an “overweight” rating in a research report on Tuesday. Finally, Barclays upped their target price on Targa Resources from $226.00 to $255.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 7th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, Targa Resources presently has an average rating of “Moderate Buy” and a consensus target price of $265.86.

Targa Resources Stock Up 3.1%

The company has a debt-to-equity ratio of 5.64, a current ratio of 0.72 and a quick ratio of 0.62. The business’s 50 day moving average price is $243.27 and its 200 day moving average price is $206.36. The firm has a market cap of $56.48 billion, a PE ratio of 26.60, a PEG ratio of 1.64 and a beta of 0.75.

Targa Resources (NYSE:TRGP) last issued its quarterly earnings results on Thursday, May 7th. The pipeline company reported $2.21 earnings per share for the quarter, missing analysts’ consensus estimates of $2.48 by ($0.27). Targa Resources had a net margin of 12.87% and a return on equity of 71.00%. The company had revenue of $4.09 billion during the quarter, compared to analysts’ expectations of $4.68 billion. On average, equities research analysts expect that Targa Resources, Inc. will post 10.32 earnings per share for the current year.

Targa Resources Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 30th will be paid a $1.25 dividend. This is a boost from Targa Resources’s previous quarterly dividend of $1.00. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Thursday, April 30th. Targa Resources’s dividend payout ratio is presently 50.56%.

Insider Activity

In related news, insider Robert Muraro sold 24,589 shares of the stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $241.34, for a total value of $5,934,309.26. Following the completion of the transaction, the insider directly owned 197,401 shares of the company’s stock, valued at approximately $47,640,757.34. This represents a 11.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Charles R. Crisp sold 10,602 shares of the firm’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $255.96, for a total value of $2,713,687.92. Following the completion of the transaction, the director owned 66,492 shares in the company, valued at $17,019,292.32. The trade was a 13.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 115,531 shares of company stock valued at $27,405,821 in the last three months. Company insiders own 1.37% of the company’s stock.

Institutional Investors Weigh In On Targa Resources

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Olistico Wealth LLC purchased a new position in shares of Targa Resources during the 4th quarter worth $27,000. Atlantic Union Bankshares Corp purchased a new stake in Targa Resources in the 4th quarter valued at about $27,000. Miller Capital Partners Inc. purchased a new stake in Targa Resources in the 4th quarter valued at about $30,000. Leonteq Securities AG acquired a new position in Targa Resources in the fourth quarter valued at about $31,000. Finally, Peoples Financial Services CORP. acquired a new position in Targa Resources in the third quarter valued at about $34,000. Hedge funds and other institutional investors own 92.13% of the company’s stock.

Targa Resources Company Profile

Targa Resources Corporation (NYSE: TRGP) is a U.S.-focused midstream energy company that provides gathering, processing, transportation, storage and marketing services for natural gas, natural gas liquids (NGLs), and condensate. Its operations span the midstream value chain, including gas gathering systems that collect production from wells, processing plants that separate and recover NGLs and other hydrocarbons, fractionation and purification facilities that prepare NGLs for market, and pipeline and terminal assets that move and store products for producers, refiners and other customers.

The company operates a network of pipelines, processing plants, fractionators and storage facilities that serve producers and consumers across major U.S.