Analyst Lowers FY2026 EPS Estimates for Targa Resources

Targa Resources Corp. (NYSE:TRGP) has recently faced a reduction in earnings estimates for the fiscal year 2026 by analysts at US Capital Advisors. In a report published on March 24th, analyst J. Carreker stated that the pipeline company is now expected to achieve earnings per share (EPS) of $9.21, revised down from the earlier estimate of $9.31. In contrast, the consensus estimate for Targa Resources' current fiscal year earnings stands at $8.15 per share.

On February 20th, Targa Resources announced its earnings results for the previous quarter, reporting an EPS of $1.44. This figure fell short of the consensus estimate of $1.90 by $0.46. Additionally, the company recorded a net margin of 7.81% and a return on equity of 28.67%. The reported revenue was $4.41 billion, lower than the anticipated $4.48 billion.

Targa Resources has also attracted attention in various other research reports. Barclays recently raised their price target for the company from $204.00 to $211.00, rating the stock as "overweight." Mizuho also increased their target from $208.00 to $226.00, maintaining an "outperform" assessment. Furthermore, Truist Financial elevated their price target from $220.00 to $235.00 with a "buy" rating. Wells Fargo & Company adjusted their price target upward from $204.00 to $220.00 and similarly rated the stock as "overweight." Additionally, Royal Bank of Canada raised their price objective from $220.00 to $221.00, granting the stock an "outperform" rating. At present, one analyst has indicated a hold rating, while thirteen analysts recommend buying the stock, and one rates it as a strong buy. According to MarketBeat, Targa Resources has an average rating of "Buy" alongside an average target price of $211.00.

Targa Resources Stock Overview

As of Wednesday, Targa Resources stock opened at $201.91. The company’s 50-day moving average stands at $199.95 while the 200-day moving average is $184.28. Targa Resources has a debt-to-equity ratio of 3.05, a current ratio of 0.77, and a quick ratio of 0.61. With a market capitalization of $44.04 billion, the company has a price-to-earnings (P/E) ratio of 35.18, a PEG ratio of 0.61, and a beta of 2.32. Over the past year, Targa Resources’ stock has experienced a low of $110.09 and a high of $218.51.

Institutional Investment Changes

Recently, several institutional investors have modified their positions in Targa Resources. For instance, Vanguard Group Inc. increased its stake by 0.6% in the fourth quarter, now holding 27,160,608 shares valued at approximately $4.85 billion after acquiring an additional 150,038 shares. Similarly, Wellington Management Group LLP expanded its holdings by 4.4% during the third quarter, amassing a total of 15,106,591 shares worth $2.24 billion after purchasing 633,589 additional shares. Geode Capital Management LLC raised its stake by 3.7% in the fourth quarter, now owning 5,930,473 shares valued at around $1.06 billion after buying another 212,986 shares. Norges Bank entered a new position in Targa Resources valued at $505.13 million in the fourth quarter. Price T. Rowe Associates Inc. also raised its shareholding by 2.0% in the fourth quarter, now owning 2,756,419 shares valued at $492.02 million after acquiring 53,853 shares. Institutional investors presently hold approximately 92.13% of Targa Resources' shares.

Insider Transactions

In recent insider trading news, D. Scott Pryor, an insider, sold 35,000 shares of Targa Resources on February 27th at an average price of $197.30, resulting in a total transaction value of $6,905,500. Following this sale, Pryor retained 82,139 shares valued at about $16.21 million, reflecting a decrease of 29.88% in ownership. Additionally, Jennifer R. Kneale, another insider, sold 29,887 shares on February 25th at an average price of $192.42, amounting to a transaction total of $5,750,856.54. After the sale, Kneale owned 227,269 shares valued at approximately $43.73 million, marking an 11.62% reduction in ownership. Over the past ninety days, insiders sold a total of 115,914 shares worth about $22.61 million, while insiders collectively hold about 1.39% of the company’s stock.

Dividend Announcement

Furthermore, Targa Resources has declared a quarterly dividend, which was paid on February 14th. Shareholders on record as of January 31st received a dividend of $0.75 per share. The ex-dividend date was also January 31st. This translates to an annualized dividend of $3.00, providing a yield of 1.49%. Targa's current dividend payout ratio stands at 52.26%.

Company Information

Targa Resources Corp., along with its subsidiary Targa Resources Partners LP, specializes in owning, operating, acquiring, and developing various midstream infrastructure assets within North America. The company operates through two main segments: Gathering and Processing, and Logistics and Transportation, focusing on a range of services including gathering, compressing, and selling natural gas, as well as handling natural gas liquids and crude oil.

Targa, Resources, Earnings