Insider Selling: Matthew J Meloy Unloads $9.53M Of Targa Resources Stock

Making a noteworthy insider sell on February 26, Matthew J Meloy, Chief Executive Officer at Targa Resources TRGP, is reported in the latest SEC filing.

What Happened: After conducting a thorough analysis, Meloy sold 48,837 shares of Targa Resources. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $9,527,064.

As of Thursday morning, Targa Resources shares are up by 0.22%, currently priced at $199.0.

Unveiling the Story Behind Targa Resources

Targa Resources is a midstream firm that primarily operates gathering and processing assets with substantial positions in the Permian, Stack, Scoop, and Bakken plays. It has fractionation capacity at Mont Belvieu and operates a liquefied petroleum gas export terminal. The Grand Prix natural gas liquids pipeline is another important asset.

Targa Resources: Financial Performance Dissected

Revenue Growth: Targa Resources’s remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 3.91%. This signifies a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 25.07%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Targa Resources exhibits below-average bottom-line performance with a current EPS of 1.460757.

Debt Management: Targa Resources’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.5, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 34.59 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a P/S ratio of 2.68 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 13.91, the company’s market valuation exceeds industry averages.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Understanding the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Targa Resources’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.