In a recent transaction, Horizon Kinetics Asset Management LLC has increased its holdings in Texas Pacific Land Corp (NYSE:TPL), a firm specializing in oil royalty trading. The asset management company purchased additional shares, signaling confidence in the Texas-based corporation's ongoing business performance.
The transaction, which took place on June 3, 2024, involved the acquisition of 3 shares at a price of $598.40 each, amounting to a total investment of $1,795. This purchase adds to Horizon Kinetics' already substantial position in the company, as indicated by a footnote in the filing that refers to a previous Schedule 13D amendment filed on February 28, 2024. The amendment disclosed Horizon Kinetics' beneficial ownership of 1,271,975 shares, alongside Murray Stahl's direct and indirect interests.
Following this latest acquisition, Horizon Kinetics' reported ownership in Texas Pacific Land Corp stands at 1,085,034 shares. The filing also clarified that Stahl, despite having a significant interest, does not exercise investment discretion over the issuer's securities.
Investors often monitor such filings to gauge insider sentiment and potential future performance of a company's stock. The recent purchase by Horizon Kinetics might be interpreted as a positive sign, reflecting a belief in the value and future prospects of Texas Pacific Land Corp.
InvestingPro Insights
As Horizon Kinetics Asset Management LLC bolsters its stake in Texas Pacific Land Corp (NYSE:TPL), the company's financial health and market performance offer insights into the asset manager's continued investment. Texas Pacific Land Corp holds a strong financial position, with gross profit margins that are particularly impressive. The latest data indicates a gross profit margin of 94.18% over the last twelve months as of Q1 2024, showcasing the company's efficiency in managing its cost of goods sold relative to its revenue, which totaled $659.38M USD in the same period.
Investors should note that Texas Pacific Land Corp trades at a high earnings multiple, with a P/E ratio of 30.74 as of Q1 2024. This could suggest that the market has high expectations for the company's future earnings growth or that its stock is potentially overvalued compared to peers. Additionally, the company's Price / Book ratio stands at 11.88, indicating that the stock might be trading at a premium relative to the company's book value.
Despite a slight revenue decline of -1.06% over the last twelve months as of Q1 2024, Texas Pacific Land Corp has demonstrated a strong quarterly revenue growth of 18.98% in Q1 2024, which may have been a factor in Horizon Kinetics' decision to increase their holdings. Moreover, the company's ability to maintain dividend payments for 11 consecutive years, with a dividend yield of 0.79% and a growth of 8.0% in the last twelve months, reflects a commitment to returning value to shareholders.
For a deeper analysis and additional InvestingPro Tips, investors can explore the full range of insights on Texas Pacific Land Corp at https://www.investing.com/pro/TPL, including 15 tips that may guide investment decisions. Utilize coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further value in your investment journey.
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