During today's afternoon trading session, TPG took the market by storm, rocketing to $41.76 per share despite it now being above its mean target price of $35.23. This 1.5% movement implies there may not be much more room for upwards movement for the stock -- if its analysts are to be believed. They are giving the Asset Management stock on average rating of buy, with target prices ranging from 31.0 to 43.0 dollars per share.
We can use TPG's short interest as a proxy for determining general market sentiment regarding the stock. The short interest is the percentage of the share float that represents short positions, meaning that the investor believes the stock will decline in the future. Since TPG's short interest is 6.2%, the market sentiment is mixed on this stock.
When a stock is sold short, it means an investor has borrowed shares of the stock from their broker, and then sold them at the going market price. The investor hopes for the price to decline, so that they might buy those shares back at a lower price in the future. Once they do, they can return the borrowed shares to their broker, and keep the profit they made on the transaction.
We can make inferences about the market sentiment surrounding TPG 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 13.7%, 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 mixed market sentiment regarding TPG because of an analyst belief that shares are overpriced, a buy 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 TPG:
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The stock has trailing 12 month earnings per share (EPS) of $-0.11
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TPG has a trailing 12 month Price to Earnings (P/E) ratio of -379.6 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 6.29 in contrast to the S&P 500's average ratio of 2.95
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TPG is a Finance company, and the sector average P/E and P/B ratios are 12.38 and 1.58 respectively
