Targa Resources Corp. (NYSE:TRGP) has been downgraded by Citigroup on November 29 which now rates the stock as Neutral compared with Buy rating suggested in the past. Analysts at BofA/Merrill, shed their negative views on October 25 by lifting it fromNeutral to Buy. Analysts at Credit Suisse, made their first call about the stock on October 11, recommending it is Neutral. Barclays analysts came out with bullish views on October 03 when the call was made. They think the stock is now Overweight compared to to their prior call for Equal Weight.
Targa Resources Corp. (TRGP) hit an intraday high Thursday at $44.43. The shares finished at $43.64, after trading as low as $42.31 earlier in the session. It dropped -3.41% in recent trade and currently has a stock-market value of $10.14B. Trading activity significantly improved as the volume at ready counter increased to 3,122,586 shares versus 2,517,715 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,033,165 shares. The stock is now 4.53% above against its bear-market low of $41.75 on April 04, 2018. It has retreated -35.68% since it’s 52-week high of $59.21 reached in October. Now the market price is down -3.09% on the year and down -9.87% YTD.
TRGP’s 50 day simple moving average (SMA 50) price is $51.72 and its 200-day simple moving average (SMA 200) price is $50.09. The company’s stock currently has a total float of 225.35M shares. Its weekly volatility is hovering around 3.18% and felt 3.33% volatility in price over a month. On the upside, the share price will test short term resistance at around $44.61. On a downside, the stock is likely to find some support, which begins at $42.49. The failure to get near-term support could push it to $41.34.
Separately, it has been reported that multiple insider activity took place at Targa Resources Corp. (TRGP). Director Tong Chris acquired 2,200 shares for $90,061 in transaction occurred on 2018/11/16. After making this transaction, the Director owns a direct stake of 103,400 shares, worth $3,930,262, as per the last closing price. On 2018/08/23 Klein John Richard, Senior VP and CAO at TRGP, dumped 984 shares at an average price of $55.63 per share. The selling total is valued at $1,046,836.
Director, Crisp Charles R had divested 3,100 shares for $119,705 through a trade on 2018/08/20. Following this activity, the insider holds 167,803 shares worth $5,223,926 as of recent close. Wall Street’s most bullish Targa Resources Corp. (NYSE:TRGP) analysts are predicting the share price to blow past $72 per share during the next 12 months. The current median share price forecast by them is $60, suggesting that the stock could increase 37.49% in that time frame. The average price target of $60.78 calls for a nearly 39.28% increase in the stock price.
When looking at valuations, Targa Resources Corp. (TRGP) has a pricey P/E of 3967.27x as compared to industry average of 58.95x. Moreover, it trades for 61.46 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.63x price/book and 0.96x price/sales. Compared to others, Targa Resources Corp. is in a different league with regards to profitability, having net margins of 2.6%. To put some perspective around this, the industry’s average net margin is 10.59%. TRGP’s ROE is 4.4%, which is also considerably worse than the industry’s ROE of 8.66%. It’s also not liquid in the near term, with a current ratio of 0.7. The stock has a debt/capital of 0.98.