Shares of Targa Resources, Inc. (NYSE:TRGP) have been assigned a consensus rating of “Moderate Buy” by seventeen brokerages covering the company, according to a report from MarketBeat. This assessment includes three analysts who have issued a hold rating, thirteen who have given a buy rating, and one who has designated the stock as a strong buy.
The average target price set by these brokerages over the past year stands at approximately $210.21. Recent analysis has shown a range of adjustments to target prices. For instance, BMO Capital Markets increased its target on Targa Resources from $185.00 to $196.00, marking it as an “outperform” in a note published on November 6, 2023. In contrast, Goldman Sachs Group reduced its price target from $189.00 to $188.00 while maintaining a buy rating in a report released on November 13, 2023.
Meanwhile, Morgan Stanley raised its target from $240.00 to $261.00, also giving the stock an “overweight” rating in a report on November 12, 2023. Additionally, Wells Fargo & Company reaffirmed an “overweight” rating and increased its target price from $198.00 to $205.00 on August 8, 2023. Lastly, Royal Bank of Canada raised its price target from $208.00 to $213.00, assigning an “outperform” rating in a note released on November 14, 2023.
Investors may find interest in Targa Resources’ recent stock performance. The stock opened at $170.36 on November 17, 2023. In terms of technical indicators, the company has a 50-day simple moving average of $162.40 and a two-hundred day moving average of $164.73. Over the past year, Targa Resources has seen a 52-week low of $144.14 and a high of $218.51.
In its most recent quarterly earnings report, released on November 5, 2023, Targa Resources reported earnings of $2.20 per share, slightly below analysts’ expectations of $2.22. The company generated revenue of $4.15 billion for the quarter, falling short of the consensus estimate of $4.70 billion. Despite these challenges, Targa Resources reported a return on equity of 43.35% and a net margin of 8.99%.
The company also declared a quarterly dividend of $1.00 per share, which was paid on November 17, 2023. Shareholders on record as of October 31, 2023, received this payout, which translates to an annualized dividend of $4.00 and a dividend yield of 2.3%. The ex-dividend date was also on October 31, 2023, and Targa Resources maintains a payout ratio of 53.19%.
In terms of insider activity, D. Scott Pryor, an insider at Targa Resources, sold 20,000 shares on November 14, 2023, at an average price of $172.21, totaling approximately $3.44 million. Following this transaction, Pryor’s ownership reduced to 22,139 shares, valued at about $3.81 million.
Institutional investors have shown notable activity regarding Targa Resources shares. Vanguard Group Inc. increased its holdings by 1.5% during the third quarter and now owns 28,382,289 shares worth around $4.76 billion. Wellington Management Group LLP also raised its stake by 9.0% during the same period, totaling 19,643,139 shares valued at approximately $3.29 billion. Other significant investors include Geode Capital Management LLC and Invesco Ltd., who have also increased their ownership in the company.
Targa Resources operates within the midstream sector, focusing on the gathering and processing of natural gas and related products, as well as logistics and transportation services. Its operations span a diverse range of infrastructure assets in North America, reflecting its integral role in the energy supply chain.
