Texas Pacific Land Corp Sees $10,999 Insider Buying by Investing.com

In a recent move, Texas Pacific Land Corp (NYSE: ) witnessed insider buying activity that reached a total value of $10,999. The transactions, which took place on September 20, 2024, involved the purchase of shares at prices ranging from $913.60 to $925.81.

The documents indicate that Horizon Kinetics Asset Management LLC, a significant shareholder, and Murray Stahl, a director of Texas Pacific Land Corp, were involved in the purchases. Stahl, who is also associated with Horizon Kinetics Asset Management LLC, has a controlling interest in several accounts but does not exercise investment discretion with respect to the issuer’s securities, as noted in the footnotes of the document.

The purchased shares were acquired through various entities, including Horizon Kinetics Hard Assets LLC, Horizon Credit Opportunity Fund LP and Polestar (NASDAQ: ) Offshore Fund Ltd, among others. Each of these entities is related to Horizon Kinetics Asset Management LLC, which holds a significant stake in Texas Pacific Land Corp.

The transactions were made pursuant to a Rule 10b5-1 plan adopted on May 14, 2024, which allows insiders to establish a trading plan to buy or sell securities at a predetermined time. This approach is often used to avoid accusations of insider trading, as it proves that trades were planned in advance.

Investors often watch insider buying activity because it can indicate executives’ confidence in the company’s future prospects. Texas Pacific Land Corp’s latest insider trades could be a sign that insiders believe in the long-term value of the company’s stock.

In other recent news, Texas Pacific Land Corporation (TPL) reported record results in its water services and operations segment for the second quarter of 2024. The company reported consolidated revenue of approximately $172 million, marking a 14% compared to last year. annual growth and diluted earnings per share of $4.98. The water segment set corporate records for sales revenue, volumes and net income, with top water sales customers including Exxon (NYSE: ), Conoco, Occidental (NYSE: ), EOG and BP (NYSE: ).

In other recent developments, the Public Utility Commission of Texas has selected 17 gas-fired power plant projects, including those from companies such as NRG Energy (NYSE: ), Vistra, Constellation, NextEra and GE Vernova, for a share of $5.38 billion USD in government funding. This financing is part of a new program designed to encourage the development of electricity generation facilities through low-interest loans. Projects that have advanced to the next phase represent nearly 10,000 megawatts in power generation capacity.

These recent developments underscore the continued efforts of Texas companies to strengthen the state’s energy infrastructure and mitigate the risk of future power shortages while setting new records in water utility revenue.

InvestingPro Insights

Amid insider buying activity at Texas Pacific Land Corp (NYSE:TPL), the company’s financial health and stock performance metrics provide additional context for investors. Texas Pacific Land Corp has a solid balance sheet with more cash than debt, which is a reassuring sign for investors looking for stability. This is complemented by an impressive gross profit margin of 93.61% over the trailing twelve months to Q2 2024, reflecting the company’s ability to maintain profitability.

The stock has seen a significant return over the past week, with a total price return of 11.65%, which aligns with insider buying patterns and could indicate a positive outlook among those with intimate knowledge of the company. However, potential investors should be cautious as the Relative Strength Index (RSI) suggests that the stock is currently in overbought territory, which could imply a near-term pullback.

With a market cap of $21.79 billion and trading near its 52-week high at 99.35% of this peak, Texas Pacific Land Corp shares have a high earnings multiple with a P/E ratio of 48 ,51. This valuation may raise questions about the stock’s growth prospects relative to its price, as indicated by a PEG ratio of 6.11, which suggests the stock may be trading at a premium compared to expected earnings growth .

For those interested in delving deeper into the financial and stock performance of Texas Pacific Land Corp, InvestingPro offers a comprehensive suite of additional InvestingPro tools and advice. There are currently 22 InvestingPro tips available for Texas Pacific Land Corp, which can be accessed by visiting https://www.investing.com/pro/TPL, providing investors with more information on the company’s valuation, performance metrics and financial health.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.