HOUSTON—Charles R. Crisp, a director at Targa Resources Corp. (NYSE:TRGP), reported selling 6,000 shares of the company's common stock on November 8, according to a recent SEC filing. The shares were sold at a price of $190.68 each, resulting in a total transaction value of approximately $1.14 million.
Following the sale, Crisp holds 82,471 shares of Targa Resources. Additionally, the filing noted a separate transaction involving the disposition of 500 shares, though this was recorded at no cost and did not impact the overall financial outcome.
In other recent news, Targa Resources Corp. has seen robust growth in the third quarter of 2024, reporting a record adjusted EBITDA of $1.07 billion. This has been attributed to increased volumes in the Permian region and a strategic shift to a fee-based model, which has insulated 90% of the company's margins from commodity price fluctuations. RBC Capital Markets has expressed confidence in Targa's performance, maintaining its Outperform rating and raising its price target from $172.00 to $199.00. The firm expects the company's backlog of growth projects to significantly contribute to cash flow, potentially bolstering capital returns over time.
Targa has also announced the construction of two new plants in the Permian, with sour gas treating capacity set to exceed 2.3 billion cubic feet per day by early 2025. Moody's (NYSE:MCO) has recognized the company's financial stability, upgrading it to Baa2. Furthermore, Targa plans to return 40% to 50% of adjusted cash flow to shareholders in 2024 and projects an increase in the annual common dividend to $4 per share in 2025. These recent developments underscore Targa's commitment to shareholder returns and robust financial health.
InvestingPro Insights
As Charles R. Crisp reduces his stake in Targa Resources Corp. (NYSE:TRGP), investors may find additional context in the company's recent performance and market position. According to InvestingPro data, Targa Resources has shown impressive momentum, with a 134.98% price total return over the past year and a substantial 128.74% return year-to-date. This strong performance has pushed the stock to trade near its 52-week high, with the current price at 98.56% of that peak.
The company's financial health appears robust, with a market capitalization of $42.33 billion and an EBITDA of $4.02 billion for the last twelve months as of Q3 2024. However, investors should note that Targa Resources is trading at a relatively high P/E ratio of 34.98, which may indicate that the stock is priced at a premium compared to its earnings.
InvestingPro Tips highlight that Targa Resources has maintained dividend payments for 14 consecutive years and has raised its dividend for 3 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield stands at 1.54%, which may be attractive to income-focused investors.
For those considering Targa Resources as an investment opportunity, it's worth noting that InvestingPro offers 18 additional tips for TRGP, providing a more comprehensive analysis of the company's prospects and potential risks. These insights can be valuable for investors looking to make informed decisions in the dynamic energy infrastructure sector.
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