Murray Stahl, a director at Texas Pacific Land Corp (NYSE:TPL), and Horizon Kinetics Asset Management LLC have disclosed recent stock purchases worth a total of $24,826, according to a recent SEC filing. The transactions involved the acquisition of common stock at prices ranging from $1,004 to $1,058.18 per share.
The purchases were made on October 11 and October 14, 2024, with shares acquired by various entities associated with Horizon Kinetics, including Horizon Kinetics Hard Assets LLC and Horizon Credit Opportunity Fund LP. These transactions were executed under a Rule 10b5-1 plan, which allows insiders to set up a trading plan for selling stocks they own, providing some protection against accusations of insider trading.
Horizon Kinetics Asset Management LLC, where Stahl serves as Chairman, Chief Executive Officer, and Chief Investment Officer, reported these acquisitions, highlighting the firm's ongoing involvement and interest in Texas Pacific Land Corp. Despite his roles, Stahl does not participate in investment decisions regarding the issuer's securities.
In other recent news, Texas Pacific Land Corporation (TPL) posted record-breaking results in its Water Services and Operations segment during its second quarter 2024 financial results. The company reported consolidated revenues of approximately $172 million, marking a 14% year-over-year growth, and a diluted earnings per share of $4.98. The water segment set corporate records for sales revenues, volumes, and net income, with Exxon (NYSE:XOM), Conoco, Occidental (NYSE:OXY), EOG, and BP (NYSE:BP) listed as top water sales customers.
In a separate development, the Public Utility Commission of Texas has shortlisted 17 gas-fired power plant projects, including companies such as NRG Energy (NYSE:NRG), Vistra, Constellation, NextEra, and GE Vernova, as candidates for a share of $5.38 billion in government funding. The initiative aims to encourage the development of natural gas electricity generation facilities through low-interest loans. The selected projects, representing nearly 10,000 megawatts in power generation capacity, are expected to receive their initial loan disbursements by December 31, 2025.
These recent developments highlight TPL's strong performance and Texas' efforts to strengthen its energy infrastructure. As outlined in the analyst notes, TPL's focus on enhancing intrinsic value per share through selective and disciplined M&A pursuits, and its aim to maintain a $700 million target cash balance to leverage market opportunities, underscore the company's strategic approach to growth.
InvestingPro Insights
The recent insider purchases by Murray Stahl and Horizon Kinetics Asset Management LLC align with Texas Pacific Land Corp's (NYSE:TPL) strong financial performance and market position. According to InvestingPro data, TPL boasts a market capitalization of $23.79 billion and has demonstrated impressive profitability with a gross profit margin of 93.61% for the last twelve months as of Q2 2024.
InvestingPro Tips highlight that TPL has maintained dividend payments for 11 consecutive years, indicating a commitment to shareholder returns. This consistent dividend policy may be attractive to long-term investors like Stahl and Horizon Kinetics. Additionally, TPL holds more cash than debt on its balance sheet, suggesting financial stability and flexibility.
The company's stock has shown significant momentum, with a 31.79% price total return over the past month and an impressive 85.72% return over the last six months. This performance aligns with the InvestingPro Tip noting TPL's strong return over the last three months.
While these metrics paint a positive picture, investors should note that TPL is trading at a high P/E ratio of 52.99, which may indicate the stock is priced at a premium. The PEG ratio of 6.96 further suggests that the stock might be overvalued relative to its growth prospects.
For those interested in a deeper analysis, InvestingPro offers 21 additional tips for TPL, providing a more comprehensive view of the company's financial health and market position.
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