Analysts' Earnings Predictions for Targa Resources in Q1 2025

On February 24, 2025, analysts from Capital One Financial released their earnings estimates for Targa Resources Corp. (NYSE:TRGP). They predict that the pipeline company will report earnings of $1.89 per share for the first quarter of 2025. This is part of a broader consensus that anticipates Targa Resources will achieve annual earnings of $8.15 per share for the current fiscal year. Capital One Financial also provided estimates for subsequent quarters, predicting Q2 2025 earnings at $1.82 per share, Q3 2025 at $1.94 per share, and Q4 2025 at $2.11 per share.

Several other financial analysts have also recently updated their ratings and price targets for Targa Resources. On February 20, Mizuho raised its price target for the stock from $208.00 to $226.00, maintaining an "outperform" rating. Royal Bank of Canada also increased its target from $172.00 to $199.00, while Wells Fargo & Company raised their target from $204.00 to $220.00, both retaining an "outperform" rating. Meanwhile, US Capital Advisors downgraded their recommendation from "moderate buy" to "hold" in a report from November. Stifel Nicolaus increased their target from $190.00 to $224.00, assigning a "buy" rating. Overall, one equity analyst holds a "hold" rating, thirteen have issued buy ratings, and one has given a strong buy rating, resulting in an average rating of "Buy" and a consensus price target of $205.43, according to MarketBeat.com.

Targa Resources’ Stock Performance

Targa Resources shares opened at $198.20 on Tuesday, reflecting a rise of 1.7%. The company has a market capitalization of $43.23 billion, with a P/E ratio of 34.53 and a P/E/G ratio of 0.61. The company's debt-to-equity ratio stands at 3.05, with a current ratio of 0.77 and a quick ratio of 0.61. Notably, Targa Resources has seen a 1-year low of $96.64 and a high of $218.51. Its 50-day simple moving average is $197.00, while the 200-day average is $177.53.

Targa Resources recently reported its quarterly earnings results on February 20, revealing earnings of $1.44 per share for the quarter that fell short of analysts’ expectations, which projected earnings of $1.90 per share. The actual revenue reported was $4.41 billion, slightly below the expected $4.48 billion. The company reported a return on equity of 28.67% and a net margin of 7.81%.

Dividend Announcement

The company announced a quarterly dividend that was paid on February 14, with stockholders of record on January 31 receiving a payment of $0.75 per share. This equates to an annualized dividend of $3.00, providing a yield of 1.51%. Targa Resources’ payout ratio currently stands at 52.26%.

Insider Selling Activity

In related corporate actions, CEO Matthew J. Meloy sold 48,837 shares at an average price of $195.08 on February 25. This transaction totaled approximately $9.53 million, resulting in a decrease in the CEO's total holdings to 725,628 shares, which are now valued at around $141.56 million. Similarly, insider Jennifer R. Kneale sold 29,887 shares for an approximate total of $5.75 million, reducing her ownership to about 227,269 shares valued at $43.73 million. Insiders currently hold about 1.39% of the company's stock.

Institutional Investor Activity

Recent activity from institutional investors shows a mix of buying and selling of Targa Resources shares. Ameriflex Group Inc. acquired a new position worth $31,000 during the fourth quarter. Mackenzie Financial Corp. increased its holdings by 32.2%, now owning over $27.91 million in shares after purchasing additional stock. Toronto Dominion Bank raised its holdings by an impressive 383.0%, acquiring an additional 298,429 shares, totaling about $67.18 million. Other institutions like Vise Technologies and Pinkerton Retirement Specialists also expanded their shares significantly. Currently, institutional investors hold approximately 92.13% of Targa Resources’ stock.

About Targa Resources

Targa Resources Corp. operates, owns, and develops essential midstream infrastructure assets across North America, primarily through its subsidiary, Targa Resources Partners LP. The company’s operations encompass two main segments: Gathering and Processing, and Logistics and Transportation. Their services include gathering, compressing, treating, processing, transporting, and selling natural gas, as well as dealing with natural gas liquids (NGL) storage, transportation, and exporting services.

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