In a recent transaction, Horizon Kinetics Asset Management LLC and Murray Stahl, its Chairman and CEO, reported the purchase of Texas Pacific Land Corp (NYSE:TPL) shares valued at approximately $20,700. The acquisition was made at a price of $1724.56 per share.
The series of transactions, which took place on March 25, 2024, involved the purchase of common stock in various quantities, with the total number of shares acquired amounting to 12 across different accounts managed by Horizon Kinetics. Following the purchases, Horizon Kinetics Asset Management LLC's holdings in Texas Pacific Land Corp increased significantly, reflecting a strong belief in the company's future prospects.
Notably, the purchases were executed under a pre-established trading plan, known as a Rule 10b5-1 plan, which was adopted on September 14, 2023. This plan allows company insiders to set up a trading schedule in advance to buy or sell shares at a predetermined time, providing a defense against potential claims of trading on inside information.
The SEC filing also included footnotes indicating that on February 28, 2024, Horizon Kinetics Asset Management LLC had filed an amendment to its Schedule 13D, disclosing beneficial ownership of a substantial number of shares. The filing further clarified the extent of Horizon Kinetics' pecuniary interest in the shares and the separation of accounts in which Mr. Stahl has a controlling interest but does not exercise investment discretion with respect to the issuer's securities.
Investors often monitor insider transactions as they can provide insights into the executives' confidence in the company's future performance. The recent purchases by Horizon Kinetics and its executive leadership suggest a positive outlook for Texas Pacific Land Corp.
InvestingPro Insights
As Horizon Kinetics Asset Management LLC increases its stake in Texas Pacific Land Corp (NYSE:TPL), investors are closely following the company's financial metrics and market performance. According to recent data from InvestingPro, Texas Pacific Land Corp holds a market capitalization of approximately $13.15 billion USD and maintains an impressive gross profit margin of 94.69% over the last twelve months as of Q1 2023. This high margin reflects the company's ability to manage its cost of goods sold effectively, which is a positive sign for potential investors.
Moreover, the company's revenue growth for Q1 2023 stood at 9.14% quarterly, indicating a solid performance in recent months. Despite a slight decline in year-over-year revenue growth, the company's ability to increase its quarterly revenue showcases its resilience and potential for recovery. Additionally, Texas Pacific Land Corp's operating income margin of 77.04% over the last twelve months highlights its operational efficiency and profitability.
InvestingPro Tips for Texas Pacific Land Corp suggest that the stock is currently trading at a high earnings multiple, with a P/E ratio of 32.47. This indicates that investors are willing to pay a premium for the company's earnings, possibly due to expectations of future growth. Furthermore, the stock is in overbought territory according to the Relative Strength Index (RSI), which could mean that it might be due for a correction in the short term. Investors interested in further insights and tips can find a total of 15 additional InvestingPro Tips for Texas Pacific Land Corp at Investing.com. To access these tips and in-depth analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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