In a recent transaction, Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), further increased its stake in the company. On May 21, Horizon Kinetics purchased additional shares of Texas Pacific Land Corp, reflecting continued confidence in the oil royalty trader's prospects.
The asset management firm acquired 3 shares of common stock at a price of $619.07 each, amounting to a total investment of $1,857. This move is part of the ongoing investment activities by Horizon Kinetics, which is known for its strategic stake-building in companies.
Following this transaction, Horizon Kinetics' ownership in Texas Pacific Land Corp has reached over 1 million shares. This is in line with the details provided in a February filing where the firm reported beneficial ownership of 1,271,975 shares, with Murray Stahl, a key figure at Horizon Kinetics, having a direct interest in 2,474 shares and an indirect interest in approximately 53,550 shares.
Investors often monitor the buying and selling activities of significant shareholders like Horizon Kinetics, as these can be indicative of the firm's outlook on the company's future performance. The recent purchase by Horizon Kinetics may be interpreted by the market as a signal of its continued belief in the value and growth potential of Texas Pacific Land Corp.
The company, with its primary business in oil royalty trading, has been a part of Horizon Kinetics' investment portfolio, and this additional purchase reaffirms the asset management firm's commitment to its investment in Texas Pacific Land Corp.
As always, market participants will be watching closely to see how this increased investment by a major shareholder influences the performance of Texas Pacific Land Corp in the market.
InvestingPro Insights
Following Horizon Kinetics' recent acquisition of additional shares in Texas Pacific Land Corp (NYSE:TPL), InvestingPro data and tips offer a deeper understanding of the company's financial health and market performance. Texas Pacific Land Corp holds a market capitalization of approximately $14.18 billion, indicating a substantial presence in its sector. The company's impressive gross profit margin stands at 94.18% for the last twelve months as of Q1 2024, reflecting efficient operations and a strong command over cost management.
InvestingPro Tips highlight that Texas Pacific Land Corp has more cash than debt on its balance sheet and its cash flows can sufficiently cover interest payments. This financial stability is a positive signal for investors like Horizon Kinetics, suggesting a lower risk profile and the ability to sustain operations through various market conditions. Additionally, the company has maintained dividend payments for 11 consecutive years, with a recent dividend yield of 0.76% and a dividend growth of 8.0% in the last twelve months as of Q1 2024.
The stock is currently trading at a high earnings multiple, with a P/E ratio of 32.77, which may suggest investor confidence in future earnings potential. However, it is also trading at a high Price/Book multiple of 12.64, indicating that the stock might be valued richly in terms of its net asset value. Despite a slight dip in revenue growth of -1.06% in the last twelve months as of Q1 2024, the company has experienced a quarterly revenue growth of 18.98%, demonstrating potential for rebound and growth.
Investors interested in gaining more insights can access additional InvestingPro Tips for Texas Pacific Land Corp at https://www.investing.com/pro/TPL. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With this subscription, investors will find a total of 16 InvestingPro Tips that could further inform their investment decisions regarding Texas Pacific Land Corp.
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