Executives at Horizon Kinetics Asset Management LLC have purchased shares of Texas Pacific Land Corp (NYSE:TPL), with transactions totaling over $11,000. The purchases occurred on October 9, 2024, at prices ranging from $960.29 to $961.77 per share.
The series of acquisitions included Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity Fund LP, and other entities under the company's control, reflecting a continued investment in the oil royalty trader by the asset management firm. These transactions were conducted according to a pre-arranged Rule 10b5-1 trading plan, which allows insiders to buy shares at predetermined times.
Specifically, the transactions were carried out by Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity Fund LP, Horizon Common Inc, Polestar (NASDAQ:PSNY) Offshore Fund Ltd, and Horizon Kinetics Asset Management LLC, with the latter excluding partnerships and other accounts in which Mr. Murray Stahl, Chairman and CEO of Horizon Kinetics, has a controlling interest.
The reported transactions indicate a strong belief by the executives in the future of Texas Pacific Land Corp, as they increase their holdings in the company. Following the stock purchases, the ownership stakes have been adjusted to reflect the increased number of shares.
Investors often look to insider buying as a signal of confidence in the company's prospects, and these transactions by Horizon Kinetics executives are no exception. The reported purchases provide a clear message of optimism from the management team regarding the future of Texas Pacific Land Corp.
In other recent news, Texas Pacific Land Corporation showcased a record-breaking performance in its Water Services and Operations segment during the second quarter of 2024. The company reported consolidated revenues of approximately $172 million, marking a 14% year-over-year growth, and diluted earnings per share of $4.98. Texas Pacific Land's water segment set corporate records for sales revenues, volumes, royalties revenues, and net income. The company also noted a slight increase in oil and gas royalty production, with a focus on expanding assets in the Permian Basin.
In the meantime, the Public Utility Commission of Texas has shortlisted 17 gas-fired power plant projects, including NRG Energy (NYSE:NRG), Vistra, Constellation, NextEra, and GE Vernova, for a potential share of $5.38 billion in government funding. These projects represent nearly 10,000 megawatts in power generation capacity and are part of Texas' broader effort to strengthen its energy infrastructure and to mitigate the risk of future power shortages. Initial loan disbursements for the approved projects are expected by December 31, 2025. These are among the recent developments in the energy sector.
InvestingPro Insights
The recent insider purchases of Texas Pacific Land Corp (NYSE:TPL) shares by Horizon Kinetics executives align with several positive indicators highlighted by InvestingPro. TPL's impressive gross profit margins, which stand at 93.61% for the last twelve months as of Q2 2024, underscore the company's operational efficiency and profitability. This metric supports the executives' confidence in the company's financial health.
Additionally, TPL's strong market performance is evident in its year-to-date price total return of 90.63%, significantly outperforming broader market indices. This exceptional return may have contributed to the insiders' decision to increase their stakes, as they likely anticipate continued growth.
An InvestingPro Tip notes that TPL has maintained dividend payments for 11 consecutive years, reflecting the company's commitment to shareholder returns. While the current dividend yield is modest at 0.48%, the consistency in payouts adds to the stock's appeal for long-term investors.
It's worth noting that TPL is trading near its 52-week high, with its price at 99.03% of the peak. This proximity to the high, combined with the insider buying activity, suggests strong market confidence in the company's prospects.
For readers interested in a more comprehensive analysis, InvestingPro offers 19 additional tips for TPL, providing a deeper understanding of the company's financial position and market sentiment.
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