Targa Resources Stock Tripled in a Year: Will It Continue?

Targa Resources (TRGP) has positive momentum. Its stock tripled in the past year. In comparison, ONEOK (OKE) rose 150% and Kinder Morgan (KMI) rose 50% during the same timeframe. The Alerian MLP ETF (AMLP), which holds top infrastructure MLPs, rose nearly 50% in the past year. So, Targa Resources gained more than its peers over the last 12 months.

The above graph shows Targa Resources’ stock price movement compared to its 50-day and 200-day moving averages over the past year.

Currently, Targa Resources stock is trading around $59—4% above its 50-day moving average. It’s 25% above its 200-day moving average. It gained momentum and crossed above its 50-day moving average in February 2016 and its 200-day average in May 2016. It has been on an upward trend since then.

The premium over the two moving averages indicates that Targa Resources stock might remain strong in the near term.

On January 19, 2017, Targa Resources announced its 4Q16 distribution of $0.91 per unit—unchanged from 3Q16. The challenging commodity price environment forced many midstream companies to announce flat or even reduced dividends.

Plains All American Pipeline (PAA) announced 4Q16 distribution of $0.55 per common unit—the same as its 3Q16 distribution.

In the next part, we’ll look at analysts’ expectations for Targa Resources stock in the next year.