In a recent transaction, Horizon Kinetics Asset Management LLC has increased its holdings in Texas Pacific Land Corp (NYSE:TPL), a company known for its involvement in oil royalty trading. The asset management firm purchased 3 shares of common stock at a price of $582.60 each on April 19, 2024, totaling an investment of $1,747.80.
This purchase adds to Horizon Kinetics Asset Management's already substantial stake in Texas Pacific Land Corp. According to a footnote in the SEC filing, as of February 28, 2024, the firm had reported beneficial ownership of 1,271,975 shares. The filing also detailed the interests of Murray Stahl, who has a direct interest in 2,474 shares and an indirect interest in approximately 53,550 shares. However, it was noted that Mr. Stahl does not exercise investment discretion with respect to the securities of the issuer.
The transaction reflects Horizon Kinetics Asset Management's continued confidence in Texas Pacific Land Corp, which operates within the real estate and construction sector, specifically focusing on oil royalty trading. The firm's increased stake in TPL is part of its investment activities as a ten percent owner of the company.
Investors and market watchers often look to such transactions as indicators of a company's health and the confidence that major stakeholders have in its future prospects. The recent acquisition by Horizon Kinetics Asset Management LLC underscores a sustained interest in Texas Pacific Land Corp's operations and potential for growth.
The transaction was signed off by Jay Kesslen, acting as attorney-in-fact, on April 22, 2024, as per the SEC filing.
InvestingPro Insights
In light of Horizon Kinetics Asset Management LLC's recent investment in Texas Pacific Land Corp (NYSE:TPL), investors may find the following data and insights from InvestingPro particularly enlightening. With a market capitalization of $13.53 billion, Texas Pacific Land Corp is a significant player in the oil royalty trading space. The company's impressive gross profit margin of 94.69% for the last twelve months as of Q1 2023, as reported by InvestingPro, suggests a strong ability to manage costs and generate revenue efficiently.
An InvestingPro Tip that stands out is the company's ability to hold more cash than debt on its balance sheet, which is a positive sign of financial health and risk management. Additionally, Texas Pacific Land Corp has maintained dividend payments for 11 consecutive years, with a dividend yield of 0.8% as of February 2024, reflecting a stable return to shareholders. The company's stock has also provided a strong return over the last three months, with a price total return of 17.65%.
While Texas Pacific Land Corp is trading at a high earnings multiple, with a P/E ratio of 33.43, this may be justified by its robust profit margins and consistent performance. For investors looking for more in-depth analysis and additional InvestingPro Tips, such as the company's cash flow sufficiency and liquidity position, there are 14 more tips available on InvestingPro. Interested readers can utilize the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering valuable insights for making informed investment decisions.
With its next earnings date slated for May 8, 2024, and the company's stock trading at 87.39% of its 52-week high, potential investors should keep an eye on Texas Pacific Land Corp's performance in the upcoming quarter.
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