Targa Resources Partners (NGLS) Strong On High Relative Volume Today

Trade-Ideas LLC identified Targa Resources Partners ( NGLS) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Targa Resources Partners as such a stock due to the following factors:

  • NGLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.3 million.
  • NGLS has traded 426,491 shares today.
  • NGLS is trading at 4.07 times the normal volume for the stock at this time of day.
  • NGLS is trading at a new high 6.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on NGLS:

Targa Resources Partners LP owns, operates, acquires, and develops midstream energy assets in the United States. The stock currently has a dividend yield of 24.5%. NGLS has a PE ratio of 17. Currently there are 6 analysts that rate Targa Resources Partners a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Targa Resources Partners has been 1.8 million shares per day over the past 30 days. Targa has a market cap of $2.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.47 and a short float of 2.8% with 0.97 days to cover. Shares are down 35.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Targa Resources Partners as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 87.39% to $215.50 million when compared to the same quarter last year. In addition, TARGA RESOURCES PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of -26.82%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 36.9%. Since the same quarter one year prior, revenues fell by 28.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 70.87%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 97.43% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TARGA RESOURCES PARTNERS LP's return on equity is below that of both the industry average and the S&P 500.

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