Julie H. Boushka, Senior Vice President and Chief Accounting Officer at Targa Resources Corp. (NYSE:TRGP), sold a significant portion of her holdings in the company. According to a recent SEC filing, Boushka sold 3,260 shares of common stock on November 8, 2024. The shares were sold at a weighted average price of $190.7391, resulting in a total transaction value of approximately $621,809.
Following the sale, Boushka retains ownership of 35,143 shares in the company. The sale was executed over multiple transactions, with prices ranging from $190.35 to $190.81 per share. This transaction is part of Boushka's ongoing management of her investment portfolio within Targa Resources, a company involved in natural gas transmission.
In other recent news, Targa Resources Corp has been the subject of positive attention following robust third-quarter results. The company reported a record adjusted EBITDA of $1.07 billion, largely due to increased volumes in the Permian region. This success is credited to a strategic shift to a fee-based model, which has insulated 90% of the company's margins from commodity price fluctuations.
RBC Capital Markets has reflected this strong performance in their recent analysis, maintaining an Outperform rating on Targa Resources and increasing their price target from $172.00 to $199.00. The firm anticipates a significant contribution to cash flow from the company's backlog of growth projects, which could enhance capital returns over time.
In addition to strong earnings, Targa Resources has announced two new plants in the Permian, expected to increase sour gas treating capacity to exceed 2.3 billion cubic feet per day by early 2025. The company's financial stability was further recognized by Moody's (NYSE:MCO), which upgraded Targa to Baa2 in October.
Looking ahead, Targa plans to return 40% to 50% of adjusted cash flow to shareholders in 2024, with infrastructure spending set to accelerate in 2025. The company also projects an increase in the annual common dividend to $4 per share in 2025 and has repurchased nearly $650 million in shares year-to-date, indicating a strong commitment to shareholder returns. These are among the recent developments that highlight Targa's robust financial health.
InvestingPro Insights
Julie H. Boushka's recent sale of Targa Resources Corp. (NYSE:TRGP) shares comes at a time when the company's stock is showing strong performance. According to InvestingPro data, TRGP has seen a remarkable 134.98% price total return over the past year, and is currently trading near its 52-week high, at 98.56% of that peak.
This robust performance is reflected in several InvestingPro Tips. For instance, TRGP has demonstrated a "Significant return over the last week" and a "Strong return over the last month," with a 9.53% and 17.75% price total return, respectively. These short-term gains are part of a broader trend, as evidenced by the "Large price uptick over the last six months," which stands at an impressive 73.4%.
Despite the strong stock performance, investors should note that TRGP is "Trading at a high earnings multiple," with a P/E ratio of 34.98. This valuation metric might be a factor for executives like Boushka when considering their personal investment strategies.
It's worth noting that TRGP has maintained a consistent dividend policy, having "raised its dividend for 3 consecutive years" and "maintained dividend payments for 14 consecutive years." The current dividend yield is 1.54%, which may be attractive to income-focused investors.
For those interested in a more comprehensive analysis, InvestingPro offers 15 additional tips for TRGP, providing a deeper understanding of the company's financial health and market position.
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