Targa Resources Adjusts FY2026 Earnings Estimates

Targa Resources Corp. (NYSE:TRGP) has recently received an adjustment to its earnings outlook for the fiscal year 2026. Analysts at US Capital Advisors published a report on March 24th indicating that they have lowered their earnings per share (EPS) estimate for Targa to $9.21, down from an earlier prediction of $9.31. This update comes as analysts continue to process Targa's financial performance, with the current consensus estimate for the full-year earnings projected at $8.15 per share.

In a previous announcement, Targa Resources reported its earnings for the fourth quarter on February 20th, revealing it achieved an EPS of $1.44, which fell short of the consensus estimate of $1.90 by $0.46. The company registered a net margin of 7.81% and a return on equity of 28.67%. During the same quarter, Targa generated $4.41 billion in revenue, slightly below the anticipated $4.48 billion.

Shares of Targa Resources have been a focal point for several investment banks. Barclays recently raised its price target for the stock from $204.00 to $211.00, maintaining an "overweight" rating. Mizuho also increased its target from $208.00 to $226.00, while issuing an "outperform" rating. Furthermore, Truist Financial upgraded their price target from $220.00 to $235.00, keeping a "buy" recommendation on the stock. Wells Fargo followed suit by raising its target from $204.00 to $220.00, again with an "overweight" rating, and Royal Bank of Canada adjusted theirs from $220.00 to $221.00, maintaining an "outperform" designation. According to MarketBeat data, Targa Resources currently has one hold rating, thirteen buy ratings, and one strong buy rating, leading to an average rating of "Buy" and an average target price of $211.00.

Recent Stock Performance of Targa Resources

As of Wednesday, Targa Resources' stock opened at $201.91. The company has shown a 50-day moving average of $199.95 and a two-hundred day moving average of $184.28. Key financial ratios indicate a debt-to-equity ratio of 3.05, a current ratio of 0.77, and a quick ratio of 0.61. The company's market cap stands at $44.04 billion, with a P/E ratio of 35.18 and a PEG ratio of 0.61. Over the past year, the stock has fluctuated between a low of $110.09 and a high of $218.51.

Institutional Investment Trends

Recent movements among institutional investors signal confidence in Targa Resources. Vanguard Group Inc. has increased its stakes by 0.6%, now owning over 27 million shares valued at approximately $4.85 billion. Wellington Management Group LLP also raised its holdings by 4.4% to around 15.1 million shares worth about $2.24 billion. Notably, Geode Capital Management LLC saw a 3.7% increase in its position during the fourth quarter, while Norges Bank acquired a new stake valued at around $505 million. In total, institutional investors and hedge funds own about 92.13% of Targa's stock, reflecting strong institutional backing.

Insider Transactions and Dividends

In insider trading news, D. Scott Pryor recently sold 35,000 shares at an average price of $197.30, resulting in proceeds of approximately $6.91 million. Following this transaction, Pryor’s holdings decreased significantly. Additionally, another insider, Jennifer R. Kneale, sold 29,887 shares at around $192.42, totaling approximately $5.75 million. The company has also announced a quarterly dividend of $0.75, which was paid on February 14th. This dividend represents an annual yield of approximately 1.49%, with a payout ratio of 52.26%.

Understanding Targa Resources

Targa Resources Corp., along with its subsidiary Targa Resources Partners LP, operates a comprehensive midstream infrastructure network in North America. The company specializes in gathering, processing, transporting, and selling natural gas and related products, including natural gas liquids (NGL) and crude oil.

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