Texas Pacific Land Stock (NYSE:TPL), Trade Ideas

Texas Pacific Land

Texas Pacific Land Corp is mainly engaged in the sales and leases of land owned, retaining oil and gas royalties, and the overall management of the land owned. It operates its business in two segments including Land and Resource Management and Water Service and Operations. The Land and Resource Management segment focuses on managing its oil and gas royalty interest and surface acres of land. The Water Services and Operations segment encompasses the business of providing full-service water offerings to operators, produced-water treatment, infrastructure development, and disposal solutions. The company generates the majority of its revenue from the Land and Resource Management segment.

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Wall Street saw a muted trading session as major indices dipped into the red by midday in New York.

Wall Street Falters Ahead Of Fed Minutes, Nvidia Earnings, Cybersecurity Selloff: What&#39;s Driving Markets Wednesday?

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With Quiver Quantitative’s recent institutional holdings data, we can see that several hedge funds and asset managers have been increasing their holdings in Texas Pacific Land Corporation (NYSE: TPL).

The Bull Case For Texas Pacific Land

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Texas Pacific Land Corporation Common Stock

Texas Pacific Land Corp

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Texas Pacific Land's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) short percent of float has risen 152.13% since its last report. The company recently reported that it has 706 thousand shares sold short, which is 4.74% of all regular shares that are available for trading. Based on its trading volume, it would take traders 8.55 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Texas Pacific Land Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1713294922_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Texas Pacific Land has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Texas Pacific Land's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Texas Pacific Land's peer group average for short interest as a percentage of float is 6.95%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Texas Pacific Land's Recent Short Interest

BWS Financial analyst Hamed Khorsand maintains Texas Pacific Land (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) with a Buy and announces $917 price target.

News

Price Target

Analyst Ratings

BWS Financial Maintains Buy on Texas Pacific Land, Announces $917 Price Target

Disclosed in the latest SEC filing, a significant insider purchase on March 13, involves ERIC OLIVER, Board Member at Texas Pacific Land (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>).
What Happened: OLIVER's recent purchase of 300 shares of Texas Pacific Land, disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001811074/000110465924034033//Archives/edgar/data/1811074/000110465924034033/0001104659-24-034033-index.htm">U.S. Securities and Exchange Commission</a> on Wednesday, reflects confidence in the company's potential. The total transaction value is $473,049.
As of Thursday morning, Texas Pacific Land shares are down by 1.93%, currently priced at $1575.47.
<h3>Unveiling the Story Behind Texas Pacific Land</h3>
Texas Pacific Land Corp is mainly engaged in the sales and leases of land owned, retaining oil and gas royalties, and the overall management of the land owned. It operates its business in two segments including Land and Resource Management and Water Service and Operations. The Land and Resource Management segment focuses on managing its oil and gas royalty interest and surface acres of land. The Water Services and Operations segment encompasses the business of providing full-service water offerings to operators, produced-water treatment, infrastructure development, and disposal solutions. The company generates the majority of its revenue from the Land and Resource Management segment.
<h3>Financial Milestones: Texas Pacific Land's Journey</h3>
Revenue Growth: Texas Pacific Land's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 9.14%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company sets a benchmark with a high gross margin of 92.23%, reflecting superior cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Texas Pacific Land's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 14.74.
</li>
</ul>
Debt Management: Texas Pacific Land's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.0.
Analyzing Market Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 30.44, Texas Pacific Land's stock is perceived as being overvalued in the market.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 19.55 is above industry norms, reflecting an elevated valuation for Texas Pacific Land's stock and potential overvaluation based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Texas Pacific Land's EV/EBITDA ratio, surpassing industry averages at 23.15, positions it with an above-average valuation in the market.
</li>
</ul>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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<h3>Why Insider Transactions Are Important</h3>
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
<h3>A Closer Look at Important Transaction Codes</h3>
When analyzing transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001811074">Check Out The Full List Of Texas Pacific Land's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

ERIC OLIVER Boosts Confidence With $473K Purchase Of Texas Pacific Land Stock

Texas Pacific Land Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) (the &quot;Company&quot;) today announced that its Board of Directors has approved a three-for-one stock split to be distributed to stockholders as a stock dividend. Each stockholder of record at the close of business on March 18, 2024, will receive two additional shares of common stock of the Company for each share held as of this record date. The new shares will be distributed on March 26, 2024. We expect that trading of the Company&#39;s common stock will begin on a stock-split adjusted basis on March 27, 2024

Stock Split

Reported Earlier, Texas Pacific Land Announces Three-For-One Stock Split

Texas Pacific Land (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) reported quarterly earnings of $14.73 per share which beat the analyst consensus estimate of $12.59 by 17 percent. The company reported quarterly sales of $166.70 million which beat the analyst consensus estimate of $152.20 million by 9.53 percent. This is a 9.16 percent increase over sales of $152.71 million the same period last year.

Earnings

Earnings Beats

Texas Pacific Land Q4 2023 GAAP EPS $14.73 Beats $12.59 Estimate, Sales $166.70M Beat $152.20M Estimate

Wall Street saw a muted trading session as major indices dipped into the red <a href="https://www.benzinga.com/topic/wall-street">by midday in New York</a>.
Traders are currently anticipating further insights into monetary policy from the forthcoming <a href="https://www.benzinga.com/markets/equities/24/02/37223022/wednesday-watch-awaiting-fed-minutes-and-nvidias-earnings-for-market-direction">Federal Reserve meeting minutes.</a>
Investors are also poised for another significant event, as Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is set to announce its fourth-quarter earnings <a href="https://www.benzinga.com/news/earnings/24/02/37230071/how-to-earn-500-a-month-from-nvidia-stock-ahead-of-q4-earnings-report">after the market closes</a>.
The dollar, Treasury yields, and gold remained relatively stable, whereas in the commodities market, oil prices saw a modest 0.8% increase, with West Texas Intermediate (WTI) crude climbing to nearly $78 a barrel. 
Natural gas prices experienced a near 5% upswing, following a 9% jump on Tuesday, rebounding from significantly low levels, leading energy stocks to perform better than other sectors.
Cybersecurity stocks took the spotlight, with the Global X Cybersecurity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUG#NYSE">BUG</a>) experiencing a decline of over 7% in a single day, marking its steepest one-day drop since March 2020. This was in part due to a sharp fall in Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>), which plummeted 27% following disappointing future earnings projections. 
Similarly, CrowdStrike Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) and Zscaler Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZS#NASDAQ">ZS</a>) faced significant double-digit percentage losses.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was 1.8% weaker to $51,800. 
<h3 class="wp-block-heading">Wednesday's Performance In Major Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %</td>
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<td>Dow Jones</td>
<td>38,467.09</td>
<td>-0.3%</td>
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<td>S&amp;P 500</td>
<td>4,961.51</td>
<td>-0.3%</td>
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<td>Nasdaq 100</td>
<td>17,392.80</td>
<td>-0.9%</td>
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<td>Russell 2000</td>
<td>1,988.06 </td>
<td>-0.9%</td>
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</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 0.3% lower to $495.17, the SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) fell 0.2% to $384.80 and the tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 1% to $423.23, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>. 
The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), was the notable underperformer, down by 1.4%, while the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) was the top gainer, up 1.7%. 
<h3 class="wp-block-heading">Wall Street Stock Movers On Wednesday</h3>
<ul>
<li>Garmin Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRMN#NYSE">GRMN</a>) rallied over 10% in reaction to its quarterly results. </li>
<li>Teladoc Health Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDOC#NYSE">TDOC</a>) fell over 25% amid a revenue miss. </li>
<li>Other companies reacting to earnings were Public Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSA#NYSE">PSA</a>), up 0.9%, Realty Income Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/O#NYSE">O</a>), up 0.7%, Costar Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSGP#NASDAQ">CSGP</a>), up 1.3%, Analog Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>), up 2%, Verisk Analytics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRSK#NASDAQ">VRSK</a>), down 4%. </li>
<li>EQT Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>) and Antero Resources Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AR#NYSE">AR</a>) rose 13% and 11%, respectively, on the heels of a strong rebound in natural gas prices. </li>
<li>Companies set to report their earnings after the closing bells are Nvidia Corp., Synopsys Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNPS#NASDAQ">SNPS</a>), Ansys Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NASDAQ">ANSS</a>), Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>), Marathon Oil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>) and Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>). </li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37241019/health-care-becomes-most-overweighted-sector-as-hedge-funds-crowd-into-magnificent-">Health Care Becomes Most Overweighted Sector As Hedge Funds Crowd Into Magnificent 7</a>
Image: Shutterstock

Wall Street Falters Ahead Of Fed Minutes, Nvidia Earnings, Cybersecurity Selloff: What's Driving Markets Wednesday?

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Earnings Scheduled For February 21, 2024

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Stifel analyst Derrick Whitfield maintains Texas Pacific Land (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) with a Hold and lowers the price target from $1558 to $1414.

Stifel Maintains Hold on Texas Pacific Land, Lowers Price Target to $1414

Texas Pacific Land Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) ("TPL" or the "Company") announced today that the Delaware Court of Chancery (the "Court") has ruled in favor of TPL in the litigation between the Company and Horizon Kinetics LLC, Horizon Kinetics Asset Management LLC, SoftVest Advisors, LLC and SoftVest, L.P. (collectively, the "Investor Group"), in Texas Pacific Land Corp. v. Horizon Kinetics LLC, (C.A. No. 2022-1066-JTL) (Del. Ch.). On December 1, 2023, the Court ruled that the Investor Group should have voted with the Board's recommendation on Proposal 4, the Company's proposal to increase the number of authorized shares of common stock (the "Share Authorization Proposal") at the 2022 Annual Meeting, under the terms of the June 2020 Stockholders' Agreement with the Company (the "Stockholders' Agreement"). The Court has deemed the Investor Group's shares to have been voted in favor of the Share Authorization Proposal, which has been deemed approved by stockholders.
As previously disclosed, once a final order is entered and an amended charter is filed, the Company intends to use a portion of the newly authorized shares to affect a stock split of the Company's common stock in the form of a stock dividend, and the Court has conditioned the Share Authorization Proposal on such a stock split. In addition, the Share Authorization Proposal increases the number of authorized, unissued shares of common stock.
Sidley Austin LLP and Abrams &amp; Bayliss LLP represented TPL in the litigation.

Legal

Delaware Court Of Chancery Rules In Favor Of Texas Pacific Land Corporation On Litigation Related To Stockholders' Agreement

Stifel analyst Derrick Whitfield maintains Texas Pacific Land (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) with a Hold and lowers the price target from $1613 to $1558.

Stifel Maintains Hold on Texas Pacific Land, Lowers Price Target to $1558

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Shares of several energy companies are trading lower amid increased demand uncertainty following Chinese economic data.

Earnings Misses

Texas Pacific Land Corporation Q3 2023 EPS $13.74 Down From $16.82 YoY, Revenue $158M Misses $171.337M Estimate