TPL

Wall Street Veteran Murray Stahl Shows 'Conviction' with Daily $TPL Purchases Over One Year

06/12/2025 11:03

$TPL (Texas Pacific Land) has gained approximately 88% over the past 12 months, trading around $1,100, while displaying an unprecedented pattern of systematic insider buying that has captured investors' attention. Insider trading data spanning from June 2024 to June 2025 reveals a level of consistency and persistence rarely seen on Wall Street. The most striking pattern comes from Murray Stahl, the renowned value investor and TPL director, who has been purchasing 10-12 shares almost daily since August 16, 2024, through June 11, 2025. These approximately 160 purchase transactions represent more than simple investment decisions—they reflect strategic actions based on deep conviction. Stahl is co-founder and chairman of Horizon Kinetics Asset Management, a Wall Street veteran with over 30 years of experience. Horizon Kinetics, as a major shareholder, has maintained equally consistent buying activity throughout the same period. Since June 2024, the firm has been purchasing small amounts of 1-3 shares daily, steadily expanding its stake. Remarkably, both entities' purchases continued regardless of stock price movements. The buying persisted when $TPL reached its peak of $1,723 in November 2024, and continued even as the stock corrected to around $1,100. $TPL operates a unique business model distinct from traditional oil and gas producers. The company owns approximately 207,000 acres of vast land holdings in the Texas Permian Basin, generating revenue through royalties rather than direct oil production. This structure creates relatively stable cash flows that are less sensitive to oil price volatility. The company also maintains diversified revenue streams including water treatment services, land leasing, and pipeline right-of-way agreements. Financially, $TPL demonstrates rare strength within the energy sector. The company operates debt-free with virtually zero leverage, while maintaining an operating margin of 76.69%. Return on equity (ROE) stands at 39.5%, significantly exceeding the industry average of 14%. With $460 million in cash reserves, liquidity remains robust. This solid financial foundation provides context for the sustained insider buying activity. Murray Stahl's investment philosophy centers on identifying 'deep value' opportunities. In past interviews, he has stated that "the key is long-term holding of companies with unique asset values that the market overlooks." For $TPL, the combination of irreplaceable real assets in land ownership and the growth potential of the Permian Basin aligns with his investment criteria. The market interprets this sustained insider buying positively. Generally, insider purchases represent strong signals of management confidence in their company's prospects. Particularly for $TPL, where buying continues despite already strong returns, it suggests belief in additional upside potential. Broader energy sector conditions favor $TPL's prospects. U.S. government policies promoting domestic energy production expansion and continued Permian Basin development directly translate to increased royalty income for $TPL. Additionally, strengthening ESG regulations are driving increased demand for water treatment services, another positive factor. However, certain cautions remain. $TPL's current price-to-earnings ratio of 54.95x significantly exceeds the energy sector average of 15-20x. While this reflects high growth expectations, it could create downward pressure if performance disappoints. Additionally, short interest at 9.46% indicates some market skepticism persists. Key upcoming catalysts include second-quarter earnings scheduled for August 5-11. Following first-quarter revenue growth of 13% year-over-year to $196 million, investors will watch whether strong growth continues. The sustainability of the quarterly dividend policy of $1.60 per share (annually $6.40) also remains a focus. The systematic buying patterns of Murray Stahl and Horizon Kinetics represent more than simple investment activity—they send a powerful message of confidence in $TPL's long-term value. The consistency of purchases across various market conditions demonstrates the solidity of their investment conviction.

You can receive notifications when news is published.