Murray Stahl, a director at Texas Pacific Land Corp (NYSE:TPL), has recently purchased shares of the company, according to a new SEC filing. The transactions, which took place on October 7, 2024, involved the acquisition of shares at prices ranging from $983.00 to $986.96.
The total value of the shares purchased by Stahl amounts to over $11,807. These transactions are part of a pre-planned trading arrangement, known as a Rule 10b5-1 plan, which was adopted earlier in the year on May 14, 2024. This plan allows company insiders to set up a predetermined schedule to buy and sell company stock to avoid accusations of insider trading.
It's noteworthy that the shares purchased by Stahl are held indirectly through various investment vehicles, including Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity Fund LP, Horizon Common Inc, Polestar (NASDAQ:PSNY) Offshore Fund Ltd, and Horizon Kinetics Asset Management LLC. The indirect nature of these holdings is indicative of the complex financial structures often utilized by executives and large asset management firms.
Stahl's transactions demonstrate continued confidence in the future of Texas Pacific Land Corp, a company that operates as an oil royalty trader. This series of purchases adds to the extensive holdings managed by Horizon Kinetics Asset Management LLC, where Stahl serves as Chairman, CEO, and Chief Investment Officer. Although Stahl does not directly participate in investment decisions regarding the Issuer's securities, his role within the company and its related entities suggests a vested interest in the company's performance.
Investors often monitor insider buying as it can signal executives' belief in the company's prospects. The recent acquisitions by Stahl may be interpreted as a positive sign for Texas Pacific Land Corp's future by some market participants.
For more detailed information, investors are encouraged to review the full SEC Form 4 filing.
In other recent news, the Public Utility Commission of Texas has shortlisted 17 gas-fired power plant projects, including those from companies like NRG Energy (NYSE:NRG), Vistra, Constellation, NextEra, and GE Vernova, for a share of $5.38 billion in government funding. This funding is part of a new program designed to encourage the development of natural gas electricity generation facilities through low-interest loans. These approved projects, capable of generating nearly 10,000 megawatts, are expected to receive their initial loan disbursements by December 31, 2025.
In more recent developments, Texas Pacific Land Corporation (TPL) announced its second quarter 2024 financial results, showcasing a record-breaking performance in its Water Services and Operations segment. TPL reported consolidated revenues of approximately $172 million, a 14% year-on-year growth, and diluted earnings per share of $4.98. The company's water segment set corporate records for sales revenues, volumes, royalties revenues, and net income.
The company is also focusing on expanding its mineral and royalty assets in the Permian Basin, with a significant ramp in new permit activity during the quarter. As part of its future expectations, TPL aims to maintain a $700 million target cash balance to leverage market opportunities. The majority of its free cash flow is intended for share repurchases and dividends.
InvestingPro Insights
Murray Stahl's recent purchase of Texas Pacific Land Corp (NYSE:TPL) shares aligns with several positive indicators highlighted by InvestingPro. The company's impressive gross profit margins, as noted in an InvestingPro Tip, reflect its strong financial position in the oil royalty trading sector. This efficiency is further underscored by TPL's gross profit margin of 93.61% for the last twelve months as of Q2 2024, according to InvestingPro Data.
Another InvestingPro Tip reveals that TPL has maintained dividend payments for 11 consecutive years, suggesting a commitment to shareholder returns that may have influenced Stahl's investment decision. This is complemented by the company's solid financial health, with InvestingPro Data showing a market capitalization of $21.98 billion and a revenue of $671.1 million for the last twelve months as of Q2 2024.
Investors considering following Stahl's lead should note that TPL is trading near its 52-week high, with a price that is 96.05% of its 52-week high, according to InvestingPro Data. This performance is reflected in the stock's strong returns, with a 70.87% price total return over the past year.
For those seeking a more comprehensive analysis, InvestingPro offers 21 additional tips on TPL, providing a deeper understanding of the company's financial health and market position. These insights could be valuable for investors looking to make informed decisions in light of insider transactions like Stahl's recent purchase.
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