Texas Pacific Land (NYSE:TPL) Stock Price Up 6.6% After Better-Than-Expected Earnings

Texas Pacific Land Corporation (NYSE:TPL) shares traded up 6.6% on Thursday following a better than expected earnings announcement. The company traded as high as $470.80 and last traded at $469.72. 334,377 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 436,164 shares. The stock had previously closed at $440.71.

The financial services provider reported $1.79 earnings per share for the quarter, topping analysts’ consensus estimates of $1.73 by $0.06. The firm had revenue of $211.60 million during the quarter, compared to analysts’ expectations of $204.00 million. Texas Pacific Land had a net margin of 60.31% and a return on equity of 37.38%.

Texas Pacific Land Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be issued a dividend of $0.60 per share. The ex-dividend date of this dividend is Monday, March 2nd. This is a positive change from Texas Pacific Land’s previous quarterly dividend of $0.53. This represents a $2.40 annualized dividend and a dividend yield of 0.5%. Texas Pacific Land’s dividend payout ratio (DPR) is 30.87%.

Key Stories Impacting Texas Pacific Land

Here are the key news stories impacting Texas Pacific Land this week:

• Positive Sentiment: Q4 results beat consensus: EPS $1.79 vs. $1.73 expected and revenue $211.6M vs. $204M, with strong margins and ROE — supports valuation and near-term earnings visibility. BusinessWire: Q4 & Full-Year 2025 Results
• Positive Sentiment: Dividend increase: board raised the quarterly payout to $0.60 (12.5% hike), raising yield and signaling confidence in cash generation. This supports income-focused holders and can reduce near-term selling pressure.
• Positive Sentiment: Operational growth: company reported record Q4 water sales and is targeting expansion into data-center and desalination services — diversifies revenue beyond royalties and may grow long-term recurring cash flows. MSN: Data Center & Desalination Growth
• Positive Sentiment: Technical/momentum boost: relative strength rating upgrade and hitting a benchmark can attract trend-following and ETF flows, contributing to price strength. MSN: Relative Strength Upgrade
• Neutral Sentiment: Management engagement: company released its slide deck, hosted the earnings call (transcripts available) and invited shareholders to a Midland field visit — useful for transparency but not immediately valuation-changing. Fool: Earnings Call Transcript Seeking Alpha: Call Transcript
• Negative Sentiment: Risk/uncertainty around strategic pivot: coverage flagged an “earnings test” as the company pivots more toward data-center/AI-related services — execution risk, capital intensity or timing could pressure returns if growth needs outpace cash generation. Investing.com: Earnings Test Amid Pivot to AI

Analysts Set New Price Targets

Several equities analysts recently commented on TPL shares. Weiss Ratings reissued a “hold (c)” rating on shares of Texas Pacific Land in a research note on Monday, December 29th. Zacks Research upgraded shares of Texas Pacific Land to a “hold” rating in a report on Wednesday, December 3rd. Finally, KeyCorp set a $350.00 price objective on Texas Pacific Land and gave the company an “overweight” rating in a research report on Monday, December 1st. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $350.00.

Hedge Funds Weigh In On Texas Pacific Land

A number of institutional investors and hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Texas Pacific Land by 39.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,940 shares of the financial services provider’s stock worth $2,570,000 after acquiring an additional 545 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Texas Pacific Land by 74.1% in the first quarter. NewEdge Advisors LLC now owns 914 shares of the financial services provider’s stock valued at $1,211,000 after acquiring an additional 389 shares in the last quarter. Woodline Partners LP increased its stake in shares of Texas Pacific Land by 40.8% during the first quarter. Woodline Partners LP now owns 1,592 shares of the financial services provider’s stock worth $2,109,000 after acquiring an additional 461 shares during the period. Sequoia Financial Advisors LLC raised its holdings in Texas Pacific Land by 6.3% during the second quarter. Sequoia Financial Advisors LLC now owns 236 shares of the financial services provider’s stock worth $249,000 after purchasing an additional 14 shares in the last quarter. Finally, Principle Wealth Partners LLC lifted its position in Texas Pacific Land by 28.2% in the second quarter. Principle Wealth Partners LLC now owns 1,095 shares of the financial services provider’s stock valued at $1,157,000 after purchasing an additional 241 shares during the period. 59.94% of the stock is currently owned by institutional investors and hedge funds.

Texas Pacific Land Trading Up 10.3%

The stock has a fifty day simple moving average of $335.58 and a two-hundred day simple moving average of $316.72. The company has a market cap of $33.53 billion, a PE ratio of 69.70 and a beta of 0.95.

Texas Pacific Land Company Profile

Texas Pacific Land Corporation (NYSE: TPL) is a Texas-based land management company that derives revenue from the ownership and stewardship of large tracts of land and associated mineral rights in West Texas. The company’s origins trace to 19th century land grants associated with the Texas and Pacific Railway; over time those grant holdings have been retained and managed as a standalone corporate asset base. Texas Pacific Land is publicly listed and operates as a landowner and resource manager rather than as a traditional oil and gas producer.

The company’s primary activities include management of surface rights and leasing of land for energy and other commercial uses, administration of mineral royalty interests, and provision of water and related services to industrial customers.