Despite today's 2.7% jump to $10.89, TriplePoint Venture Growth BDC may soon be running into resistance as it is now within range of its average analyst target price of $10.66. With an average rating of hold, and analysts assigning target prices from 9.0 to 13.5 dollars per share, investors will be asking themselves if the Staffing & Employment Services stock can sustain this bullish run.
TriplePoint Venture Growth BDC's short interest can give us an idea of what future price movements the market expects from the stock. The short interest is the percentage of shares that are tied up in short positions, which will provide gains to the investor only if the stock price falls. The stock's short interest is 7.3% which seems to indicate a mixed sentiment on TPVG
Short selling involves borrowing shares and then selling them at current market prices. In the successful version of the strategy, the shares are purchased at a lower price at some time in the future. The investor then returns the shares to the lender, and keeps the profit made on the sell/buy transaction.
We can make inferences about the market sentiment surrounding TriplePoint Venture Growth BDC by analyzing its rate of institutional ownership. If institutions such as hedge funds and pension funds are the primary shareholders of a corporation, it most likely means that its shares are a good investment according to those institutions' analysts.
At 18.2%, the rate of institutional ownership is average, indicating that a sufficient number of institutions have concluded that it is a stable investment. Beware, however, that the rate of institutional ownership could also indicate an ongoing proxy battle or takeover attempt -- so you should also periodically check the news about a stock whose institutional ownership you are tracking.
In conclusion, we see negative market sentiment regarding TriplePoint Venture Growth BDC because of an analyst consensus of little upside potential, a hold rating, an average amount of shares sold short, and a very small number of institutional investors. At Market Inference, we believe that any investment decision should be preceded by an in-depth analysis of the company's fundamental values and a comparison with similar stocks.
Here's a snapshot of some important facts to keep in mind about TPVG:
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The stock has trailing 12 month earnings per share (EPS) of $-0.57
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TriplePoint Venture Growth BDC has a trailing 12 month Price to Earnings (P/E) ratio of -19.1 compared to the S&P 500 average of 15.97
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The company has a Price to Book (P/B) ratio of 0.93 in contrast to the S&P 500's average ratio of 2.95
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TriplePoint Venture Growth BDC is a Consumer Discretionary company, and the sector average P/E and P/B ratios are 22.33 and 3.12 respectively
