Targa Resources Corp. (NYSE:TRGP) Increases Dividend to $0.75 Per Share

Targa Resources Corp. (NYSE:TRGP) declared a quarterly dividend on Thursday, April 11th, Zacks reports. Shareholders of record on Tuesday, April 30th will be paid a dividend of 0.75 per share by the pipeline company on Wednesday, May 15th. This represents a $3.00 dividend on an annualized basis and a yield of 2.62%. The ex-dividend date of this dividend is Monday, April 29th. This is a positive change from Targa Resources’s previous quarterly dividend of $0.50.

Targa Resources has increased its dividend by an average of 15.2% annually over the last three years and has raised its dividend annually for the last 2 consecutive years. Targa Resources has a payout ratio of 29.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Targa Resources to earn $6.81 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 29.4%.

Targa Resources Stock Performance

Shares of TRGP opened at $114.67 on Friday. The company has a debt-to-equity ratio of 2.68, a current ratio of 0.79 and a quick ratio of 0.66. Targa Resources has a one year low of $67.36 and a one year high of $117.61. The firm has a market capitalization of $25.52 billion, a P/E ratio of 31.25 and a beta of 2.21. The business has a fifty day moving average of $103.22 and a 200 day moving average of $91.74.

Targa Resources (NYSE:TRGP) last announced its quarterly earnings data on Thursday, February 15th. The pipeline company reported $1.23 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.26). The business had revenue of $4.24 billion during the quarter, compared to analysts’ expectations of $4.50 billion. Targa Resources had a net margin of 5.20% and a return on equity of 18.64%. As a group, sell-side analysts anticipate that Targa Resources will post 5.75 EPS for the current year.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Barclays increased their price objective on Targa Resources from $116.00 to $122.00 and gave the stock an “overweight” rating in a research note on Tuesday. Truist Financial raised their price target on shares of Targa Resources from $105.00 to $120.00 and gave the company a “buy” rating in a research note on Wednesday, March 20th. UBS Group decreased their target price on shares of Targa Resources from $109.00 to $108.00 and set a “buy” rating on the stock in a research note on Thursday, January 18th. JPMorgan Chase & Co. raised their target price on shares of Targa Resources from $122.00 to $125.00 and gave the stock an “overweight” rating in a research note on Wednesday, March 6th. Finally, The Goldman Sachs Group raised their target price on shares of Targa Resources from $105.00 to $117.00 and gave the stock a “buy” rating in a research note on Thursday, April 4th. One research analyst has rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Targa Resources currently has a consensus rating of “Buy” and an average price target of $115.70.

Insiders Place Their Bets

In related news, insider D. Scott Pryor sold 10,000 shares of the business’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $97.00, for a total transaction of $970,000.00. Following the completion of the transaction, the insider now owns 156,098 shares in the company, valued at $15,141,506. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In related news, insider D. Scott Pryor sold 10,000 shares of the business’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $97.00, for a total transaction of $970,000.00. Following the completion of the transaction, the insider now owns 156,098 shares in the company, valued at $15,141,506. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CAO Julie H. Boushka sold 2,500 shares of the business’s stock in a transaction on Wednesday, February 21st. The shares were sold at an average price of $97.66, for a total transaction of $244,150.00. Following the completion of the sale, the chief accounting officer now directly owns 71,808 shares of the company’s stock, valued at $7,012,769.28. The disclosure for this sale can be found here. Insiders sold a total of 81,966 shares of company stock worth $7,987,215 over the last 90 days. Corporate insiders own 1.39% of the company’s stock.

Institutional Investors Weigh In On Targa Resources

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Harbour Investments Inc. raised its holdings in shares of Targa Resources by 51.3% in the third quarter. Harbour Investments Inc. now owns 357 shares of the pipeline company’s stock valued at $31,000 after buying an additional 121 shares during the last quarter. Quarry LP acquired a new position in shares of Targa Resources during the first quarter worth about $33,000. Sunbelt Securities Inc. acquired a new position in shares of Targa Resources during the second quarter worth about $47,000. Fred Alger Management LLC acquired a new position in shares of Targa Resources during the third quarter worth about $56,000. Finally, Resurgent Financial Advisors LLC acquired a new position in Targa Resources during the fourth quarter worth about $73,000. 92.13% of the stock is owned by hedge funds and other institutional investors.

About Targa Resources

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil.