Targa Resources Insiders Sell $13M in Stock, Raising Suspicions of Potential Weakness

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Targa Resources ($NYSE:TRGP), a publicly traded company on the New York Stock Exchange (NYSE), has seen insiders offloading US$13 million worth of stock in the past several weeks. This has raised suspicions among analysts and investors of potential weakness in the company’s underlying fundamentals. The sell-off is significant given the size of the company, and it may be a sign that insiders are expecting a decrease in the company’s value. TARGA RESOURCES is a midstream energy company that operates in the US and Canada. It is one of the largest providers of midstream services in the US, with operations in Texas, Louisiana, Oklahoma, New Mexico, Wyoming, Utah, and Canada. The company is primarily engaged in gathering, processing, compressing, treating, storing, and transporting natural gas, crude oil, NGLs, condensate, and crude oil products.

Additionally, it produces fractionation products such as ethane, propane, butane, and natural gasoline.

Market Price

The stock opened at $87.6 and closed at $88.0, up by 0.1% from the previous closing price of 87.8. This insider selling raised many questions about the future prospects of the company and whether this could be a sign of potential weakness. The news sent shockwaves throughout the investment community, with many analysts and investors questioning the long-term prospects of Targa Resources and whether they should be investing in the company or not. It is important to note that these insider sales do not necessarily indicate that the company is in trouble, but rather that the insiders may be taking a more conservative stance towards their investments.

In any case, Monday’s sell-off was concerning for investors and could have lasting implications for Targa Resources’ stock price. The company will need to provide more clarity on its future plans in order to allay investor fears and restore confidence in the stock. Without further information, it is difficult to determine what exactly is happening behind the scenes and whether or not this could be an indication of potential weakness in the company. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Targa Resources. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Targa Resources. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Targa Resources. More…

Key Ratios Snapshot

Some of the financial key ratios for Targa Resources are shown below. More…

Analysis

GoodWhale recently conducted an analysis of TARGA RESOURCES, assessing the company’s overall wellbeing based on the Star Chart methodology. The score of 6/10 indicates that the company is in an intermediate health state. TARGA RESOURCES is classified as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered somewhat less stable due to lower profitability. The analysis suggests that TARGA RESOURCES is strong in terms of assets, dividends, and growth, and medium in terms of profitability. This indicates that the company should have the capability to pay off debt and fund future operations with some degree of certainty. Considering the company’s rating and classification, investors with a higher risk appetite may be interested in TARGA RESOURCES. Such an investor should research the company thoroughly before investing, making sure to consider any potential risks that may exist. More…

Peers

The company has a strong presence in the key producing basins in the United States and is well-positioned to capitalize on the growing demand for natural gas. Targa’s competitors include ONEOK Inc, Kinetik Holdings Inc, Anhui Province Natural Gas Development Co Ltd.

– ONEOK Inc ($NYSE:OKE)

ONEOK Inc is a leading midstream service provider in the United States. It has a market cap of 24.61B as of 2022 and a Return on Equity of 28.78%. The company operates in three segments: Natural Gas Gathering, Processing and Transportation; Natural Gas Liquids (NGL) Gathering, Processing, Transportation and Marketing; and Crude Oil Gathering and Transportation. ONEOK is one of the largest independent natural gas processors in the United States, with an average processing capacity of 2.6 billion cubic feet per day in 2020. The company is also one of the largest NGL marketers in the United States and owns one of the largest NGL transportation systems in the country.

– Kinetik Holdings Inc ($NASDAQ:KNTK)

Kinetik Holdings Inc is a publicly traded company with a market capitalization of $1.49 billion as of 2022. The company has a return on equity of 5.46%. Kinetik Holdings Inc is engaged in the business of providing turnkey engineering, procurement and construction services for the development and construction of electric transmission and distribution systems.

– Anhui Province Natural Gas Development Co Ltd ($SHSE:603689)

Anhui Province Natural Gas Development Co Ltd is a Chinese state-owned enterprise that engages in the development and operation of natural gas projects. The company has a market cap of 3.45 billion as of 2022 and a return on equity of 7.42%. The company’s main business activities include the exploration, development, production, and sales of natural gas.

Summary

Targa Resources has recently seen insiders selling nearly $13 million dollars worth of stock, a move that could suggest the company is headed for a period of weakness. Investors should remain aware of the market conditions and potential risks of investing in the company. It is important to conduct thorough research into the company’s financials, management, and operations before investing. Consider factors such as revenue growth, debt levels, cash flow, and dividend payouts to evaluate the overall strength of the company.

Additionally, compare Targa Resources’ performance to its peers to identify potential opportunities or risks associated with the industry in which it operates.