Texas Pacific Land Corp (TPL) Shares Down 3.71% to $1,036.09 on Jul 7

Texas Pacific Land Corp (TPL) shares fell 3.71% to $1,036.09 on Jul 7. Trading volume was 48,957 shares, 34.5% of the average daily volume. Analysts forecast an average target price of $1,100.97, implying a 6.26% upside from the current price. The estimated GF Value for TPL in one year is $865.16, suggesting a 16.5% downside from the current price.

Texas Pacific Land Corp (TPL) shares experienced a significant drop on July 7, falling 3.71% to $1,036.09. The trading volume was 48,957 shares, representing a 34.5% increase from the average daily volume. Analysts have forecast an average target price of $1,100.97, indicating a potential 6.26% upside from the current price. The estimated GF Value for TPL in one year is $865.16, suggesting a 16.5% downside from the current price.

Despite the recent decline, TPL maintains impressive gross profit margins of 93.5% and boasts a "GREAT" financial health rating according to InvestingPro analysis [1]. The company reported a revenue shortfall in its first-quarter earnings for 2025, posting earnings per share of $5.24, slightly below the forecast of $5.27, while revenue was $196 million, missing the anticipated $228 million. However, TPL maintained a robust adjusted EBITDA margin of 86.4% and achieved a 25% year-over-year growth in oil and gas royalty production, reaching 31,100 barrels of oil equivalent per day [2].

Texas Capital Securities recently upgraded TPL’s stock rating from Hold to Buy, citing the company’s desalination project as a key factor for this decision. The firm anticipates that the company will de-risk its desalination project and advance its power generation and data center opportunities by the end of the year [2]. Additionally, Horizon Kinetics Asset Management LLC, a ten percent owner of TPL, reported purchasing 1 share of common stock on July 2, 2025, at a price of $1,066.31, further indicating confidence in the company's prospects [1].

In summary, while TPL shares have experienced a decline, the company's financial health and strategic initiatives suggest potential long-term growth opportunities. Investors should closely monitor the company's performance and consider the analyst forecasts and valuation metrics when making investment decisions.

References:
[1] https://za.investing.com/news/insider-trading-news/horizon-kinetics-buys-texas-pacific-land-tpl-share-for-1066-93CH-4122856
[2] https://www.investing.com/news/insider-trading-news/horizon-kinetics-buys-texas-pacific-land-tpl-share-for-1066-93CH-4122856