Targa Resources (NYSE:TRGP) Hits New 1-Year High – Should You Buy?

Targa Resources, Inc. (NYSE:TRGP)’s share price hit a new 52-week high on Thursday . The company traded as high as $257.84 and last traded at $257.5430, with a volume of 195132 shares traded. The stock had previously closed at $250.14.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Weiss Ratings raised shares of Targa Resources from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, January 29th. Barclays raised their price objective on shares of Targa Resources from $226.00 to $255.00 and gave the stock an “overweight” rating in a research report on Tuesday, April 7th. Citigroup raised their target price on Targa Resources from $200.00 to $262.00 and gave the company a “buy” rating in a research note on Tuesday, February 24th. Scotiabank raised their target price on Targa Resources from $246.00 to $249.00 and gave the company an “outperform” rating in a research note on Monday, April 13th. Finally, Mizuho raised their target price on Targa Resources from $207.00 to $260.00 and gave the company an “outperform” rating in a research note on Thursday, March 19th. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $259.93.

Targa Resources Trading Up 3.7%

The firm’s 50-day moving average is $240.03 and its 200-day moving average is $200.91. The company has a current ratio of 0.67, a quick ratio of 0.55 and a debt-to-equity ratio of 5.21. The firm has a market cap of $55.70 billion, a price-to-earnings ratio of 30.18, a P/E/G ratio of 1.56 and a beta of 0.81.

Targa Resources (NYSE:TRGP) last posted its quarterly earnings results on Thursday, February 19th. The pipeline company reported $2.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.35 by $0.16. The business had revenue of $4.06 billion during the quarter, compared to the consensus estimate of $4.12 billion. Targa Resources had a net margin of 10.88% and a return on equity of 65.48%. As a group, sell-side analysts anticipate that Targa Resources, Inc. will post 10.32 EPS for the current fiscal year.

Targa Resources Increases Dividend

The business also recently disclosed 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 represents a $5.00 annualized dividend and a dividend yield of 1.9%. This is a boost from Targa Resources’s previous quarterly dividend of $1.00. The ex-dividend date of this dividend is Thursday, April 30th. Targa Resources’s dividend payout ratio (DPR) is currently 46.57%.

Insider Transactions at Targa Resources

In other news, insider D. Scott Pryor sold 17,500 shares of the stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $228.92, for a total value of $4,006,100.00. Following the completion of the sale, the insider directly owned 31,938 shares of the company’s stock, valued at $7,311,246.96. This represents a 35.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Robert Muraro sold 24,589 shares of the stock in a transaction that occurred 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 sale, the insider directly owned 197,401 shares of the company’s stock, valued at approximately $47,640,757.34. This trade represents a 11.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 104,929 shares of company stock valued at $24,692,134. Corporate insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Targa Resources

A number of hedge funds have recently bought and sold shares of TRGP. Olistico Wealth LLC purchased a new position in Targa Resources during the 4th quarter worth $27,000. Atlantic Union Bankshares Corp purchased a new position in shares of Targa Resources in the 4th quarter worth approximately $27,000. Miller Capital Partners Inc. purchased a new position in shares of Targa Resources in the 4th quarter worth approximately $30,000. Leonteq Securities AG purchased a new position in shares of Targa Resources in the 4th quarter worth approximately $31,000. Finally, Peoples Financial Services CORP. purchased a new position in shares of Targa Resources in the 3rd quarter worth approximately $34,000. 92.13% of the stock is owned by hedge funds and other institutional investors.

About Targa Resources

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.