Shares of Texas Pacific Land Corporation find themselves under significant pressure, trading near annual lows as the market digests a disappointing quarterly report. This slump coincides with the finalization of plans for a significant stock split, leaving investors to ponder whether the current weakness presents a buying opportunity or signals further decline.
Quarterly Results Disappoint, Eroding Investor Confidence
The primary catalyst for the recent sell-off was the company’s third-quarter 2025 earnings release, which fell short of market projections. Earnings per share (EPS) came in at $5.27, missing the $5.69 estimate by 7.38%. Revenue also disappointed, totaling $203 million against expectations of $210 million, a shortfall of 3.3%. This earnings miss has directly contributed to the stock’s descent toward its yearly low.
Trading at a Critical Juncture
The stock’s current price of $864.70 places it alarmingly close to its 52-week low of $838.26. This level stands in stark contrast to its annual high of $1,610.96, highlighting the extent of the recent downward trend. The persistent selling activity reflects growing caution among shareholders.
A 1-for-3 Stock Split Finalized for December
Amid the price volatility, the company has confirmed the details of its previously announced 1-for-3 stock split. The record date for the split is set for December 12, 2025. Shareholders will receive the new, post-split shares on December 22, with trading on a split-adjusted basis commencing the following day, December 23. This corporate action will increase the number of outstanding shares without altering the firm’s overall market valuation.
Should investors sell immediately? Or is it worth buying Texas Pacific Landration?
Underlying Fundamentals Show Resilience
Despite the short-term headwinds, Texas Pacific Land’s foundational business metrics remain notably strong. The company boasts an exceptionally high gross profit margin of 94.13% and has consistently paid dividends for twelve consecutive years. Its balance sheet is robust, holding more cash than debt and featuring a current ratio of 10.86, indicating substantial liquidity.
Key Financial Metrics:
* Q3 2025 EPS: $5.27 (Estimate: $5.69)
* Q3 2025 Revenue: $203 million (Estimate: $210 million)
* Gross Profit Margin: 94.13%
* Dividend Track Record: 12 consecutive years
* Current Dividend Yield: 0.75%
* Balance Sheet: Net cash position
* Current Ratio: 10.86
Analyst Perspective: KeyBanc Identifies Value
Not all market observers are deterred by the recent performance. The analysis firm KeyBanc has initiated coverage on Texas Pacific Land with an “Overweight” rating and a price target of $1,050.00. This bullish stance suggests that some experts view the current price decline as a potential entry point, betting that the company’s solid fundamentals will ultimately be rewarded by the market. The central question for investors now is the timing of that potential recovery.
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