Targa Resources Corp. (TRGP) stock is nearly perfect except the valuation

Targa Resources Corp. (NYSE: TRGP) closed the day trading at $68.67 up 0.76% from the previous closing price of $68.15. In other words, the price has increased by $+0.52 from its previous closing price. On the day, 2809354 shares were traded. TRGP stock price reached its highest trading level at $68.85 during the session, while it also had its lowest trading level at $65.57.

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For a better understanding of TRGP, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 72.66 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 7.31. For the most recent quarter (mrq), Quick Ratio is recorded 0.60 and its Current Ratio is at 0.80. In the meantime, Its Debt-to-Equity ratio is 4.33 whereas as Long-Term Debt/Eq ratio is at 4.01.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Scotiabank on March 02, 2023, initiated with a Sector Outperform rating and assigned the stock a target price of $115.

On December 09, 2022, Citigroup started tracking the stock assigning a Buy rating and target price of $95.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Mar 02 when Pryor D. Scott sold 20,000 shares for $76.11 per share. The transaction valued at 1,522,276 led to the insider holds 116,533 shares of the business.

Chung Paul W sold 18,246 shares of TRGP for $1,376,372 on Mar 01. The Director now owns 61,900 shares after completing the transaction at $75.43 per share. On Feb 28, another insider, Chung Paul W, who serves as the Director of the company, sold 7,191 shares for $75.50 each. As a result, the insider received 542,920 and left with 80,146 shares of the company.

Valuation Measures:

As of this moment, Targa’s Price-to-Earnings (P/E) ratio for their current fiscal year is 17.67, and their Forward P/E ratio for the next fiscal year is 10.19. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.55. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.76 while its Price-to-Book (P/B) ratio in mrq is 5.83.

Stock Price History:

Over the past 52 weeks, TRGP has reached a high of $81.50, while it has fallen to a 52-week low of $55.56. The 50-Day Moving Average of the stock is 74.78, while the 200-Day Moving Average is calculated to be 69.51.

Shares Statistics:

Over the past 3-months, TRGP traded about 1.52M shares per day on average, while over the past 10 days, TRGP traded about 1.7M shares per day. A total of 226.40M shares are outstanding, with a floating share count of 222.93M. Insiders hold about 0.70% of the company’s shares, while institutions hold 90.80% stake in the company. Shares short for TRGP as of Jan 12, 2023 were 4.62M with a Short Ratio of 4.50M, compared to 4.38M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.04% and a Short% of Float of 2.31%.

Dividends & Splits

TRGP’s forward annual dividend rate is 1.40, up from 0.40 a year ago. Against a Trailing Annual Dividend Yield of 0.59%, it implies a Forward Annual Dividend Yield of 1.86%. The stock’s 5-year Average Dividend Yield is 6.79.

Earnings Estimates

Current recommendations for the stock of the company come from 12 analysts. On average, analysts expect EPS of $1.38 for the current quarter, with a high estimate of $1.7 and a low estimate of $0.81, while EPS last year was $0.51. The consensus estimate for the next quarter is $1.35, with high estimates of $1.64 and low estimates of $1.15.

Analysts are recommending an EPS of between $5.61 and $1.96 for the fiscal current year, implying an average EPS of $3.86. EPS for the following year is $5.72, with 15 analysts recommending between $6.88 and $4.48.

Revenue Estimates

5 analysts predict $5.95B in revenue for the current quarter. It ranges from a high estimate of $7.35B to a low estimate of $4.93B. As of the current estimate, Targa Resources Corp.’s year-ago sales were $5.44B, an estimated increase of 9.30% from the year-ago figure. For the next quarter, 4 analysts are estimating revenue of $5.75B, an increase of 15.90% over than the figure of $9.30% in the same quarter last year. There is a high estimate of $6.37B for the next quarter, whereas the lowest estimate is $5.3B.

A total of 8 analysts have provided revenue estimates for TRGP’s current fiscal year. The highest revenue estimate was $25.1B, while the lowest revenue estimate was $16.38B, resulting in an average revenue estimate of $22.31B. In the same quarter a year ago, actual revenue was $16.95B, up 31.60% from the average estimate. Based on 7 analysts’ estimates, the company’s revenue will be $24.94B in the next fiscal year. The high estimate is $34.91B and the low estimate is $20.03B. The average revenue growth estimate for next year is up 11.80% from the average revenue estimate for this year.