Senior VP and CAO of Targa Resources Corp. (NYSE:TRGP), Julie H. Boushka, has sold a significant portion of her company stock, totaling over $1.8 million. The transactions, which took place on August 7 and 8, 2024, were executed under a prearranged trading plan.
On August 7, Boushka sold 1,213 shares at a price of $137.29 per share, amounting to a total of $166,532. The following day, she continued selling a larger batch of shares in two separate transactions. The first sale on August 8 involved 6,641 shares sold at weighted average prices ranging from $135.00 to $135.295, resulting in a total value of approximately $897,000. The second sale on the same day consisted of 6,000 shares with a weighted average price between $133.50 and $134.18, totaling around $803,000.
These sales were carried out in accordance with a Rule 10b5-1 trading plan, which Boushka had adopted on May 7, 2024. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a defense against potential accusations of trading on insider information.
After these transactions, Boushka's remaining direct ownership in Targa Resources Corp. stands at 38,403 shares. The company, based in Houston, Texas, specializes in natural gas transmission and is incorporated in Delaware. Targa Resources Corp. has not provided any specific reason for Boushka's stock sales.
Investors and analysts typically monitor insider sales for insights into executives' perspectives on their company's future performance. However, sales under Rule 10b5-1 plans are often scheduled in advance and may not necessarily reflect any change in an executive's outlook.
In other recent news, Targa Resources Corp. has announced a significant public offering of $1.0 billion in 5.500% Senior Notes due in 2035. The proceeds from this offering are planned to be used for various corporate needs, including repaying borrowings under its commercial paper note program and funding capital expenditures. The company also reported a record second quarter for 2024, achieving a record adjusted EBITDA of $984 million due to increased volumes across its operations. In addition to these financial achievements, Targa announced the appointment of Will Byers as the new Chief Financial Officer and its participation in the Blackcomb pipeline joint venture, projected to cost less than $200 million.
Furthermore, Targa has authorized a new share repurchase program worth $1 billion, following the repayment of its $500 million term loan balance in the second quarter. The company is also expecting the Daytona pipeline to be operational in the third quarter, which will enhance its infrastructure. According to analysts from Scotiabank and Targa, the company's strategic investments and initiatives, such as the Blackcomb deal, are crucial in ensuring continued growth and stability. These are among the recent developments for Targa Resources Corp.
InvestingPro Insights
In light of the recent insider transactions at Targa Resources Corp. (NYSE:TRGP), investors may find it useful to consider some key metrics and insights from InvestingPro. As Senior VP and CAO Julie H. Boushka liquidates a portion of her holdings, it's important to look at the broader financial health and market performance of the company.
One noteworthy InvestingPro Tip is that TRGP has raised its dividend for 3 consecutive years, which is indicative of the company's commitment to returning value to shareholders. Additionally, TRGP has maintained dividend payments for 14 consecutive years, a testament to its long-term stability and reliability in income distribution. These dividend trends are particularly relevant to investors who prioritize steady income streams.
Targa Resources Corp. is currently trading at a Price/Earnings (P/E) ratio of 28.5, which is considered low relative to near-term earnings growth. This could suggest that the stock is undervalued based on its earnings potential. On the other hand, the company is trading at a high Price/Book (P/B) multiple of 12.05, which may raise questions about its valuation compared to its book value.
InvestingPro Data reveals that TRGP's market cap stands at $29.64 billion, reflecting its substantial size within the industry. The company's revenue for the last twelve months as of Q2 2024 was reported at $16.26 billion, although it experienced a slight decline in growth of -8.85% during the same period. Despite this, the gross profit margin remains strong at 32.33%, indicating the company's ability to maintain profitability.
For those interested in exploring further, InvestingPro offers additional tips on TRGP, which can provide deeper insights into the company's financial health and stock performance. There are currently 15 additional InvestingPro Tips available, offering a comprehensive analysis for investors and analysts alike.
As the market digests the news of Boushka's stock sales, these InvestingPro insights can help investors make more informed decisions regarding their investment in Targa Resources Corp.
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