In a recent move, Horizon Kinetics Asset Management LLC, a significant shareholder in Texas Pacific Land Corp (NYSE:TPL), has increased its stake in the company. The asset management firm purchased additional shares of Texas Pacific Land Corp, reflecting continued confidence in the oil royalty trader's prospects.
The transaction, which took place on April 26, 2024, involved the acquisition of 3 shares at a price of $595.67 each, amounting to a total investment of approximately $1,787. With this purchase, Horizon Kinetics Asset Management LLC's holdings in Texas Pacific Land Corp have grown, showcasing a bullish stance on the company's future performance.
This latest acquisition by Horizon Kinetics comes shortly after the firm filed an amendment to its Schedule 13D in February, indicating a beneficial ownership of 1,271,975 shares. Additionally, the disclosure pointed out that Murray Stahl, the firm's key figure, 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 issuer's securities.
Investors and market watchers often monitor the buying and selling activities of significant shareholders like Horizon Kinetics as indicators of corporate insiders' perspectives on the company's valuation and prospects. The recent purchase by Horizon Kinetics Asset Management LLC could be seen as a signal of their continued belief in the intrinsic value and growth potential of Texas Pacific Land Corp.
The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission, which provides transparency on the trades made by company insiders and significant shareholders.
InvestingPro Insights
As Horizon Kinetics Asset Management LLC bolsters its position in Texas Pacific Land Corp (NYSE:TPL), several metrics and InvestingPro Tips provide additional context for investors considering the company's prospects. Notably, Texas Pacific Land Corp holds a market capitalization of $13.94 billion, signaling a robust presence in its sector.
One of the standout InvestingPro Tips for Texas Pacific Land Corp is its impressive gross profit margin, which stands at a substantial 94.69% for the last twelve months as of Q1 2023. This high margin is indicative of the company's ability to manage costs effectively while maintaining profitability. Additionally, Texas Pacific Land Corp has maintained dividend payments for 11 consecutive years, with a recent dividend yield of 0.78%, reflecting a commitment to returning value to shareholders.
Investors may also find the company's P/E ratio noteworthy. With a P/E ratio of 34.38 and an adjusted P/E ratio of 34.28 for the same period, Texas Pacific Land Corp is trading at a high earnings multiple, suggesting that investors are willing to pay a premium for its earnings potential. Moreover, the company has shown a strong return over the last three months, with a price total return of 17.77%, underscoring a positive short-term performance trend.
For those interested in further insights, there are more InvestingPro Tips available, including analysis on the company's cash flows, liquidity, and valuation multiples. Subscribers can unlock additional tips to gain a deeper understanding of Texas Pacific Land Corp's financial health and future outlook. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full range of tips and data points that InvestingPro offers.
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