Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), has recently increased its stake in the company with a new purchase. On April 18, 2024, the asset management firm bought an additional 3 shares of Texas Pacific Land Corp at a price of $582.40 per share, amounting to a total investment of $1,747.
This transaction comes after Horizon Kinetics Asset Management disclosed in a February 28, 2024, amendment to its Schedule 13D filing that it had beneficial ownership of 1,271,975 shares. Additionally, it was noted that Murray Stahl, with a direct interest in 2,474 shares and an indirect interest in approximately 53,550 shares, does not exercise investment discretion with respect to the securities of the issuer.
The recent purchase by Horizon Kinetics Asset Management has contributed to its already substantial holding in Texas Pacific Land Corp, marking a continued interest in the oil royalty trader's business. Following the transaction, the company's total number of shares owned in Texas Pacific Land is 1,084,941.
Investors and market watchers often keep a close eye on such transactions, as they can indicate the confidence that significant shareholders have in the company's future prospects. The acquisition of additional shares by a major stakeholder like Horizon Kinetics Asset Management is a noteworthy event that can provide insights into the company's investment strategy and its outlook on Texas Pacific Land Corp.
InvestingPro Insights
As Horizon Kinetics Asset Management LLC bolsters its position in Texas Pacific Land Corp (NYSE:TPL), investors are keen to understand the underlying financials that may be driving this confidence. InvestingPro data reveals a robust financial picture for Texas Pacific Land Corp, with a market capitalization of $13.35 billion and an impressive gross profit margin of 94.69% for the last twelve months as of Q4 2023. The company's ability to generate profit from its revenues remains a strong suit, as evidenced by its operating income margin of 77.04%.
Two InvestingPro Tips that stand out for Texas Pacific Land Corp are its significant cash holdings relative to debt and its ability to maintain dividend payments for 11 consecutive years. These factors contribute to a perception of financial stability and reliability for income-focused investors. Moreover, the company's stock is known for low price volatility, which may appeal to investors seeking a more predictable investment in the current market environment.
For those interested in a deeper dive into the financial health and investment potential of Texas Pacific Land Corp, InvestingPro offers additional tips and metrics. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights that could inform their investment decisions. Currently, there are 14 additional InvestingPro Tips available for Texas Pacific Land Corp, including predictions on profitability and analyses of valuation multiples.
Finally, it's worth noting that the company's shares are trading at a high earnings multiple, with a P/E ratio of 33, suggesting a premium valuation by the market. Investors may weigh this against the company's strong financial metrics and the strategic moves of significant shareholders like Horizon Kinetics Asset Management to gauge the potential for future growth.
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