Fintel reports that on September 20, 2023, Mizuho maintained coverage of Targa Resources (NYSE:TRGP) with a Buy recommendation.
Analyst Price Forecast Suggests 21.69% Upside
As of August 31, 2023, the average one-year price target for Targa Resources is 103.62. The forecasts range from a low of 89.89 to a high of $119.70. The average price target represents an increase of 21.69% from its latest reported closing price of 85.15.
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The projected annual revenue for Targa Resources is 24,819MM, an increase of 39.13%. The projected annual non-GAAP EPS is 5.60.
Targa Resources Declares $0.50 Dividend
On July 13, 2023 the company declared a regular quarterly dividend of $0.50 per share ($2.00 annualized). Shareholders of record as of July 31, 2023 received the payment on August 15, 2023. Previously, the company paid $0.50 per share.
At the current share price of $85.15 / share, the stock's dividend yield is 2.35%.
Looking back five years and taking a sample every week, the average dividend yield has been 5.01%, the lowest has been 0.69%, and the highest has been 56.17%. The standard deviation of yields is 7.33 (n=236).
The current dividend yield is 0.36 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.33. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 4.00%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1264 funds or institutions reporting positions in Targa Resources. This is a decrease of 11 owner(s) or 0.86% in the last quarter. Average portfolio weight of all funds dedicated to TRGP is 0.56%, a decrease of 0.91%. Total shares owned by institutions decreased in the last three months by 9.52% to 241,266K shares. 
The put/call ratio of TRGP is 1.07, indicating a bearish outlook.
What are Other Shareholders Doing?
Wellington Management Group Llp holds 7,918K shares representing 3.54% ownership of the company. In it's prior filing, the firm reported owning 7,230K shares, representing an increase of 8.69%. The firm increased its portfolio allocation in TRGP by 9.02% over the last quarter.
Tortoise Capital Advisors, L.l.c. holds 7,841K shares representing 3.50% ownership of the company. In it's prior filing, the firm reported owning 8,207K shares, representing a decrease of 4.67%. The firm increased its portfolio allocation in TRGP by 1.28% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,063K shares representing 3.16% ownership of the company. In it's prior filing, the firm reported owning 7,012K shares, representing an increase of 0.73%. The firm decreased its portfolio allocation in TRGP by 3.04% over the last quarter.
Invesco holds 6,499K shares representing 2.91% ownership of the company. In it's prior filing, the firm reported owning 6,520K shares, representing a decrease of 0.32%. The firm increased its portfolio allocation in TRGP by 955.69% over the last quarter.
Blackstone Group holds 6,245K shares representing 2.79% ownership of the company. In it's prior filing, the firm reported owning 8,205K shares, representing a decrease of 31.38%. The firm increased its portfolio allocation in TRGP by 13.71% over the last quarter.
Targa Resources Background Information
(This description is provided by the company.)
Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent midstream infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary midstream infrastructure assets. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting and purchasing and selling natural gas; transporting, storing, fractionating, treating and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling and purchasing and selling crude oil.
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