Executives at Horizon Kinetics Asset Management LLC have recently made a series of purchases of Texas Pacific Land Corp (NYSE:TPL) stock, according to the latest SEC filings. The transactions, which took place on September 17, 2024, involve the acquisition of shares at prices ranging from $843.76 to $877.13, amounting to a total of over $10,225.
Murray Stahl, who serves as Chairman, Chief Executive Officer, and Chief Investment Officer of Horizon Kinetics, is among the executives reported to have a controlling interest in the accounts involved in these transactions. However, it is noted that Stahl does not exercise investment discretion with respect to the securities of the issuer.
The purchases were made through various entities, including Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity Fund LP, Horizon Common Inc, Polestar (NASDAQ:PSNY) Offshore Fund Ltd, and directly by Horizon Kinetics Asset Management LLC. The acquired shares add to the significant holdings of Texas Pacific Land Corp stock by Horizon Kinetics and its executives.
The SEC filing includes a footnote clarifying that on February 28, 2024, Horizon Kinetics Asset Management LLC reported beneficial ownership of 1,271,975 shares, and after a 3-for-1 stock split by the issuer on March 27, 2024, those figures should be considered tripled. Additionally, the filing indicates that some of the purchases were made pursuant to a Rule 10b5-1 trading plan, which was adopted on May 14, 2024.
The reported transactions highlight the ongoing investment by Horizon Kinetics and its associated parties in Texas Pacific Land Corp, a company classified under the oil royalty traders industry. With the stock trading on the NYSE under the ticker TPL, these transactions may be of interest to investors following the company or the asset management firm's investment strategies.
In other recent news, Texas Pacific Land Corporation (TPL) and several other companies are making significant strides in their respective sectors. TPL has recently reported a record-breaking performance in its Water Services and Operations segment in the second quarter of 2024. The company announced consolidated revenues of approximately $172 million, marking a 14% year-over-year growth, and diluted earnings per share of $4.98. This performance is largely due to the company's successful water segment, which achieved corporate records for sales revenues, volumes, and net income.
Simultaneously, the Public Utility Commission of Texas has shortlisted 17 gas-fired power plant projects, including those from companies like NRG Energy (NYSE:NRG), Vistra, Constellation, NextEra, and GE Vernova, for potential funding from the Texas Energy Fund. This initiative, which has attracted a total of 72 applications representing a collective ask for approximately $24 billion, aims to bolster the state's power grid and mitigate the risk of future power shortages.
These developments reflect recent efforts by both TPL and the Texas government to strengthen their respective sectors. While TPL focuses on enhancing its Water Services and Operations segment, the Texas government is working to fortify the state's energy infrastructure. These initiatives, backed by solid financial performances and strategic funding programs, demonstrate the ongoing commitment of these entities to their growth and stability.
InvestingPro Insights
As executives at Horizon Kinetics Asset Management LLC increase their stake in Texas Pacific Land Corp (NYSE:TPL), investors may find the following InvestingPro data and tips illuminating. The company's market capitalization stands robust at $20.07 billion, reflecting its significant presence in the industry. Texas Pacific Land Corp's impressive gross profit margin of 93.61% for the last twelve months as of Q2 2024, as reported by InvestingPro, underscores the company's efficiency in generating income relative to its production costs. This metric is particularly noteworthy as it speaks to the company's potential for sustained profitability.
InvestingPro Tips suggest that Texas Pacific Land Corp holds more cash than debt on its balance sheet, offering a strong liquidity position that may appeal to risk-averse investors. Additionally, the company has maintained dividend payments for 11 consecutive years, indicating a commitment to returning value to shareholders. This consistency in dividends could be a compelling factor for income-focused investors.
On the performance front, Texas Pacific Land Corp has seen a significant return over the last week, with a price total return of 10.68%. This short-term uptick in performance may capture the attention of momentum investors looking for stocks with positive recent movements. For those seeking more comprehensive insights, InvestingPro offers a total of 20 additional tips for Texas Pacific Land Corp, accessible through the InvestingPro platform.
The company's P/E ratio, standing at 44.87, suggests a higher valuation compared to immediate earnings. While this may indicate investor confidence in future growth, it also points to the importance of monitoring the company's earnings trajectory. The InvestingPro Fair Value is currently estimated at $627.27, which could provide a benchmark for investors considering the stock's valuation.
Investors may also find it relevant that Texas Pacific Land Corp is trading near its 52-week high, at 99.44% of this peak price. This level of performance underscores the stock's strong momentum and may be a factor for investors to consider in their portfolio decisions. With Horizon Kinetics increasing their holdings, the alignment of these InvestingPro insights with the actions of the asset management firm's executives could offer additional context for those tracking the stock's movement.
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