July 28, 2023: In a surprising turn of events, Yousif Capital Management LLC has made an intriguing move by reducing its holdings in Targa Resources Corp. (NYSE:TRGP) by 5.1% during the first quarter, according to their most recent Form 13F filing with the Securities and Exchange Commission (SEC). With an air of mystery surrounding this decision, it is important to delve into the reasons behind this bold maneuver.
As per the filing, Yousif Capital Management LLC now owns 61,824 shares of Targa Resources’ stock after selling 3,307 shares during the quarter. The total worth of their holdings amounted to $4,510,000 as declared with the SEC. This significant reduction in stake has left many investors flabbergasted and curious about what may have influenced this pivotal decision.
Adding to the intrigue is Targa Resources’ recent announcement of a quarterly dividend that is scheduled to be paid on Tuesday, August 15th. To shed light on these developments, it is crucial to examine the details behind this dividend and its implications for both Yousif Capital Management LLC and other stakeholders.
Investors who hold positions in Targa Resources as of Monday, July 31st will receive a dividend payout of $0.50 per share. The ex-dividend date for this dividend falls on Friday, July 28th. These numbers contribute to an annualized dividend amounting to $2.00 and a dividend yield of 2.48%. Interestingly enough, Targa Resources boasts a commendable dividend payout ratio at approximately 51.81%.
To gain further insights into these unfolding events, one must consider analyst reports published recently regarding TRGP shares. StockNews.com initiated coverage on Targa Resources in a research note on May 18th where they issued a “hold” rating for the stock. Royal Bank of Canada also expressed their views by adjusting Targa Resources’ price objective down from $110.00 to $104.00 on May 8th.
Mizuho, on the other hand, maintained a “buy” rating and assigned a price objective of $99.00 to Targa Resources in their report published on June 30th. Morgan Stanley followed suit with a downward revision of their price objective from $108.00 to $106.00, highlighting an “overweight” rating for the company in their report released on July 20th.
Rounding off this series of analyst opinions is Truist Financial, who reaffirmed their faith in Targa Resources by raising the price objective from $90.00 to $95.00 in their report on May 19th. It is worth noting that one equities research analyst has issued a hold rating for the stock while ten others have placed buy ratings, with one even suggesting a strong buy rating.
According to data compiled by Bloomberg.com, the consensus among analysts is unanimously in favor of a “Buy” rating for Targa Resources stock, along with a consensus target price of approximately $99.82. Such optimistic sentiments portrayed by industry experts paint an intriguing picture amidst Yousif Capital Management LLC’s decision to decrease its holdings.
As investors puzzle over the motivations behind Yousif Capital Management LLC’s actions and analyze the implications of Targa Resources’ upcoming dividend payout, only time will reveal the true nature of these perplexing events. One can only wait with bated breath and anticipate further developments within this enigmatic saga involving one of America’s prominent pipeline companies
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Targa Resources: Institutional Confidence and Market Outlook
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”TRGP” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Targa Resources Attracts Large Investors Amidst Market Uncertainty
In recent times, Targa Resources has witnessed significant shifts in investor sentiment, as several major players have modified their holdings of the company. Notably, investors like Pacer Advisors Inc., Daiwa Securities Group Inc., Jackson Creek Investment Advisors LLC, Nisa Investment Advisors LLC, and Pallas Capital Advisors LLC have adjusted their stakes in Targa Resources. These developments reflect the meticulous nature of these investors’ strategies amid a dynamically evolving market environment.
Changes in Ownership:
Pacer Advisors Inc., for instance, increased its stake in shares of Targa Resources by an astounding 47.5% during the first quarter of this year. This move saw its ownership climb to a substantial 42,426 shares valued at $3,095,000. On a similar note, Daiwa Securities Group Inc.’s stake rose by 3.5% during the same quarter. The firm now owns 33,242 shares worth $2,425,000.
Moreover, new entrant Jackson Creek Investment Advisors LLC made waves with an initial stake acquisition amounting to approximately $216,000 during the first quarter. Furthermore, Nisa Investment Advisors LLC expanded its ownership of Targa Resources by 3%, investing in an additional 1,200 shares valued at $3,051,000.
Finally, Pallas Capital Advisors LLC bolstered its position with an 8.5% increase during the first quarter and now holds 19,642 shares worth roughly $1,512¬¬¬‚-000 – emphasizing its continued confidence in Targa Resources’ prospects.
Significance of Institutional Investors:
These collective efforts have resulted in institutional investors maintaining control over the majority (99.95%) of Targa Resources’ stock – indicative of their confidence in the company’s long-term growth trajectory and stability within a turbulent market landscape.
Insider Transactions:
In a recent disclosure, Targa Resources’ Chief Accounting Officer, Julie H. Boushka, sold 2,184 shares of the company’s stock on July 21, 2023. The transaction occurred at an average share price of $80.00 for a total value of $174,720. Currently holding 64,596 shares valued at $5,167,680 in the company, Boushka’s sale represents approximately 1.39% of Targa Resources’ stock owned by insiders.
Dividend Announcement:
Targa Resources additionally announced a quarterly dividend to be paid out on August 15th to investors who hold shares as of July 31st. The dividend amounts to $0.50 per share and has an ex-dividend date on July 28th. This translates to an annualized dividend payout ratio of $2.00 with a dividend yield of 2.48%. Targa Resources’ consistent dividend policy reflects its commitment to rewarding shareholders while maintaining healthy financials.
Market Performance and Fiscal Outlook:
As of July 28th, TRGP stock opened at a modest $80.53 with a market capitalization of about $18.20 billion. The company’s price-earnings ratio stands at 20.86 and exhibits a beta value of 2.28 – indicative of its sensitivity to market fluctuations.
Despite posting earnings per share (EPS) of $0.03 for the previous quarter that fell short of expectations by ($1.40), it is crucial to note that Targa Resources reported significant revenue amounting to $4.52 billion compared to analysts’ projections of $5.72 billion.
Looking ahead, industry experts forecast an earnings per share estimate of 5.1 for the current fiscal year – underscoring their optimistic outlook regarding Targa Resources’ ability to navigate challenges effectively.
Conclusion:
The recent shifts in ownership and investor sentiment surrounding Targa Resources have not gone unnoticed. As institutional investors increase holdings and diversify their portfolios, it is evident that Targa Resources has emerged as an attractive prospect within the market.
While concerns related to quarterly earnings persist, industry analysts remain hopeful about the long-term profitability and resilience of the company. Investors can expect continued growth strategies from Targa Resources, underpinned by its commitment to shareholder value, operational efficiency, and adaptability in an ever-changing energy landscape.
