TPL

Texas Pacific Land($TPL) Director and Major Shareholder Continue Persistent Buying Despite Stock Doubling in a Year

05/08/2025 18:09

Texas Pacific Land Corp ($TPL) Director Murray Stahl has been consistently purchasing company shares over the past six months, demonstrating strong confidence in the company's long-term growth prospects. According to insider trading data, Stahl has steadily acquired company stock almost daily up until May 7, 2025. Texas Pacific Land is a company that owns and manages vast tracts of land in the Permian Basin of Texas, primarily generating revenue through oil and natural gas royalties, surface rights, and water services. This unique business model allows the company to benefit from energy production without direct resource development risks, supporting its high profit margins. Looking at the stock price data, TPL has shown dramatic growth over the last 12 months. From approximately $580 in June 2024, the stock surged to over $1,700 by late November 2024, marking an increase of about 200%. Currently trading around $1,300, it still represents more than a doubling in value over the past year. Most notable is Director Stahl's consistent buying pattern. He has steadily purchased small quantities of shares almost daily since August 2024, executing these trades as part of a pre-planned Rule 10b5-1 plan. From August through November 2024, he typically bought 12 shares per transaction, then mostly 10 shares per transaction from December onward. As the share price increased, so did the transaction amounts, with purchases in November 2024 exceeding $1,400 per share. Major shareholder Horizon Kinetics Asset Management LLC has also been steadily acquiring shares in a similar pattern. During the same period, they regularly purchased 1-3 shares at a time, and according to footnotes, Murray Stahl appears to be associated with Horizon Kinetics. Indeed, media reports from November 2024 indicate that Horizon Kinetics is a significant shareholder, holding approximately 16% of TPL shares. This insider buying became more pronounced following the company's Q2 earnings announcement in August 2024 and the special dividend announcement in June. At that time, the company declared a special dividend of $10 per share and reported Q2 earnings of $4.98 per share. Subsequently, in November 2024, TPL achieved the milestone of being included in the S&P 500 index, after which insider buying became even more active. Meanwhile, there were some selling transactions by certain senior executives. In November 2024, CAO Stephanie Buffington sold 210 shares at approximately $1,389 per share, and CFO Chris Steddum sold 350 shares in November and 750 shares in March 2025. These sales coincided somewhat with periods when the stock price was forming peaks, but selling transactions represent a very small proportion of overall insider activity. In recently announced Q1 2025 results, TPL reported a 5.4% increase in net income to $120.7 million despite lower oil prices, thanks to increased production and higher natural gas prices. However, core earnings fell short of Wall Street expectations, attributed to a 7.5% year-over-year decline in oil prices. According to financial data, TPL boasts a remarkable profit margin of 64.32% and a return on equity (ROE) of 41.73%, indicating a financially robust company. Annual revenue stands at $705.82 million with net income of $453.96 million. Energy sector analysts evaluate TPL as having a more stable business model than traditional energy companies. As a landowner receiving royalties rather than directly drilling for oil, the company has lower operating costs and reduced capital expenditure burdens. Additionally, the Permian Basin is one of the most productive shale basins in the United States, with long-term production potential. Despite recent stock price volatility, the consistent buying by insiders demonstrates confidence in the company's long-term outlook. In particular, the consistent purchasing behavior of Director Murray Stahl and Horizon Kinetics reflects an investment philosophy focused more on the company's intrinsic value rather than short-term price fluctuations. Investors can expect TPL's unique business model, continued insider buying, and recent inclusion in the S&P 500 to positively impact the company's value over the long term. However, potential changes in profitability due to fluctuations in oil and natural gas prices remain a key risk factor.

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