5 Best Land and Timber Stocks To Buy

In this article, we discuss 5 best land and timber stocks to buy. If you want to see more stocks in this selection, check out 12 Best Land and Timber Stocks To Buy. 

5. Texas Pacific Land Corporation (NYSE:TPL)

Number of Hedge Fund Holders: 17

Texas Pacific Land Corporation (NYSE:TPL) is involved in land and resource management, as well as water services and operations. While it may be tempting to classify Texas Pacific Land Corporation (NYSE:TPL) as an oil sector company, it is undeniably a land-focused enterprise. Approximately 6% of TPL’s annual returns stem from the increase in the overall value of the land and the effective land-sale/share-repurchase initiative, which helps prevent dilution. Funding for share repurchases is partially generated through revenue from leasing activities, oil and gas royalties, as well as sales of water and minerals. It is one of the best land stocks to invest in. 

On May 22, Stifel maintained a Hold rating on Texas Pacific Land Corporation (NYSE:TPL) and lowered the firm’s price target on the shares to $1,378 from $1,399. This adjustment was made after revising estimates for TPL’s reported annual results and taking into account updated guidance provided by different companies covered under Stifel’s Americas mineral interest MLPs coverage.

According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on Texas Pacific Land Corporation (NYSE:TPL), compared to 20 funds in the earlier quarter. Murray Stahl’s Horizon Asset Management is the largest stakeholder of the company, with 1.4 million shares worth $2.4 billion. 

Wedgewood Partners made the following comment about Texas Pacific Land Corporation (NYSE:TPL) in its Q1 2023 investor letter:

“Texas Pacific Land Corporation (NYSE:TPL) was a top detractor to performance during the quarter. Also, early in the quarter we trimmed our weighting after the stock’s remarkable run in 2022. The Company’s royalty interests span over 880,000 acres in West Texas. Most of this land is located in the highly productive Delaware Basin of the Permian Basin. Although oil and gas prices will always be volatile over the short term, we expect development activity on the Company’s acreage to continue to grow at a rapid pace, primarily driven by both domestic and multinational producers looking to maximize returns on increasingly scarce oil and gas capital expenditures.”