We have noted TPG's positive performance during today's morning trading session, during which it logged a 1.0% outperformance of the S&P 500. At its current price of $62.36, the company is now trading in range of its average target price of $64.08, which calls into question its ability to keep moving higher. Analysts have given the Asset Management stock target prices ranging from $51.0 to $70.0 dollars per share, with an average rating of buy.
For the greater market's outlook on the stock, we can use TPG's short interest as a proxy. The short interest represents the proportion of the float's shares that are tied to short positions, meaning that the investor believes the stock will decline in the future. Here, the stock's short interest is 6.3% which means the outlook is split.
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.
Another way to gauge the sentiment on TPG is to look at the percentage of institutions that are invested in the stock. In this case, 76.0% of the shares are held by pension, mutual, and hedge funds, which shows that these institutions probably have strong confidence in the stock.
If institutions are invested in a particular stock, it shows in most cases that they have performed quality research and concluded that it is a good investment. In some cases, however, increases in institutional ownership could be a sign of a takeover attempt or proxy fight, which can actually injure share prices. Also, institutions are not infallible, and can certainly make miscalculations -- often with spectacular results.
In conclusion, we see positive market sentiment regarding TPG because of an analyst consensus of some upside potential, a buy rating, an average amount of shares sold short, and an average 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 $-0.18
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TPG has a trailing 12 month Price to Earnings (P/E) ratio of -346.4 compared to the S&P 500 average of 29.3
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The company has a Price to Book (P/B) ratio of 9.09 in contrast to the S&P 500's average ratio of 4.74
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TPG is a Finance company, and the sector average P/E and P/B ratios are 15.92 and 1.78 respectively
