Targa Resources (TRGP) Tops 50-Day Moving Average Following Earnings Beat
Targa Resources shares climbed above their 50-day moving average after reporting third-quarter earnings and revenue that exceeded Wall Street estimates.
Shares of Targa Resources Corp. moved above their 50-day moving average of $288.65 during trading on Wednesday, reaching an intraday peak of $291.93 before finishing at $291.3570. The upward movement followed the midstream energy company's recent quarterly earnings release, which showed higher-than-expected revenue and earnings per share alongside record volumes in the Permian region.
On Thursday, November 5th, Targa Resources reported third-quarter earnings of $3.04 per share, beating consensus estimates of $2.74 by $0.30. Revenue for the period came in at $5.60 billion, ahead of the $4.77 billion expected by analysts. The company posted a net margin of 13.45% and a return on equity of 68.83%, while also raising its full-year EBITDA outlook and noting plans to raise its 2027 common dividend by 20%.
Following the results, several brokerage firms lifted their price targets for the pipeline operator. Morgan Stanley raised its objective from $359.00 to $362.00 and maintained an overweight rating, while Scotiabank lifted its target from $319.00 to $325.00 with a sector outperform rating. Earlier in the week, Wells Fargo & Company increased its price target from $324.00 to $330.00, reiterating an overweight stance, and Citigroup raised its target from $325.00 to $338.00 with a buy rating.
Across Wall Street, analyst coverage remains favorable. According to data reported by MarketBeat, Targa Resources maintains a consensus Buy rating, backed by two Strong Buy recommendations and twenty Buy ratings, with average price targets recently reported between $325.58 and $326.37. Analysts forecast full-year earnings per share to finish around $11.51 to $11.55.
Targa Resources also declared a quarterly dividend of $1.25 per share, scheduled for distribution on Tuesday, November 17th to shareholders of record as of Friday, October 30th. This translates to an annualized payout of $5.00 per share.