Junto Capital Management LP Acquires New Holdings in TPG Inc. $TPG

Key Points

• Junto Capital Management acquired 2.04 million TPG shares worth approximately $82.8 million, giving it a 0.53% stake and making TPG its 22nd-largest portfolio holding.
• Institutional investors and hedge funds own approximately 94.03% of TPG, with several major firms—including Wellington Management, Temasek, and California State Teachers Retirement System—adding to their positions.
• TPG exceeded quarterly earnings and revenue expectations, reporting $0.69 in EPS and $628.2 million in revenue. Analysts maintain a “Moderate Buy” consensus with an average price target of $63.33, while the company’s annualized dividend yield is approximately 4.8%.

Junto Capital Management LP bought a new stake in TPG Inc. (NASDAQ:TPG - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 2,041,772 shares of the company's stock, valued at approximately $82,794,000. TPG makes up about 1.5% of Junto Capital Management LP's investment portfolio, making the stock its 22nd largest position. Junto Capital Management LP owned approximately 0.53% of TPG as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently bought and sold shares of TPG. Capital International Investors boosted its position in shares of TPG by 0.4% during the fourth quarter. Capital International Investors now owns 11,734,677 shares of the company's stock worth $749,142,000 after purchasing an additional 52,213 shares in the last quarter. Wellington Management Group LLP raised its stake in TPG by 38.1% during the 2nd quarter. Wellington Management Group LLP now owns 11,019,487 shares of the company's stock worth $446,840,000 after buying an additional 3,041,560 shares during the period. Temasek Holdings Private Ltd raised its stake in TPG by 14.1% during the 1st quarter. Temasek Holdings Private Ltd now owns 10,028,107 shares of the company's stock worth $406,239,000 after buying an additional 1,236,526 shares during the period. California State Teachers Retirement System lifted its holdings in TPG by 3,931.2% during the second quarter. California State Teachers Retirement System now owns 6,481,836 shares of the company's stock worth $262,838,000 after acquiring an additional 6,321,046 shares in the last quarter. Finally, Darlington Partners Capital Management LP bought a new position in TPG during the second quarter worth about $258,581,000. 94.03% of the stock is currently owned by institutional investors and hedge funds.

TPG Stock Performance

TPG opened at $48.91 on Thursday. The company has a market capitalization of $18.80 billion, a price-to-earnings ratio of 74.11, a P/E/G ratio of 0.85 and a beta of 1.47. The business's 50-day moving average price is $47.70 and its two-hundred day moving average price is $43.93. TPG Inc. has a 1 year low of $36.95 and a 1 year high of $70.38. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.31 and a quick ratio of 0.31.

TPG (NASDAQ:TPG - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.10. The company had revenue of $628.19 million during the quarter, compared to analysts' expectations of $596.79 million. TPG had a return on equity of 28.10% and a net margin of 4.67%.TPG's revenue for the quarter was up 23.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.69 earnings per share. Equities analysts expect that TPG Inc. will post 2.88 EPS for the current fiscal year.

TPG Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were paid a $0.59 dividend. The ex-dividend date was Friday, August 14th. This represents a $2.36 annualized dividend and a yield of 4.8%. TPG's payout ratio is presently 357.58%.

Analyst Ratings Changes

Several brokerages have issued reports on TPG. BMO Capital Markets lowered their price target on TPG from $52.00 to $50.00 and set an "outperform" rating for the company in a report on Monday, July 13th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $62.00 price objective on shares of TPG in a report on Wednesday, August 5th. Wall Street Zen upgraded TPG from a "sell" rating to a "hold" rating in a research report on Sunday, July 26th. Evercore set a $50.00 target price on TPG in a research note on Wednesday, August 5th. Finally, UBS Group raised their target price on shares of TPG from $59.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Thirteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, TPG currently has a consensus rating of "Moderate Buy" and an average target price of $63.33.

TPG News Summary

Here are the key news stories impacting TPG this week:

• Positive Sentiment: TPG is reportedly exploring a sale of healthcare-payments software company Lyric that could value the business at approximately $5 billion. A successful transaction could provide an attractive realization of TPG’s investment and demonstrate value creation in its technology and healthcare portfolio, although the process is preliminary and no deal is assured. Reuters article
• Positive Sentiment: TPG acquired a partial interest in UnitedHealth’s Florida Optum Health primary-care operations, including WellMed clinics. The investment expands TPG’s healthcare exposure and could benefit from the clinics’ operating platform and growth prospects, though financial terms and the expected effect on TPG’s earnings were not disclosed. UnitedHealth WellMed transaction article
• Neutral Sentiment: TPG-backed Third Wave Insurance appointed Vredenburg as chief executive. The leadership change may support the portfolio company’s next phase of growth, but the report provided no material financial guidance or details likely to change TPG’s near-term valuation. Third Wave Insurance CEO appointment article
• Negative Sentiment: TPG executive Todd Sisitsky is leaving to become co-CEO of rival private-equity firm CVC under its succession plan. Although the transition is not expected to occur immediately, the departure removes an experienced leader from TPG and may raise concerns about management continuity and retention. Wall Street Journal article

About TPG

TPG Inc NASDAQ: TPG is a global alternative asset management firm that invests across private equity, growth equity, impact investing, real estate, and credit and market solutions. The company manages investment funds and strategies for institutional investors, family offices, sovereign wealth funds, and other clients.

Through its various investment platforms, TPG provides capital to companies at different stages of development and across multiple industries. Its activities include acquiring and supporting established businesses, investing in high-growth companies, financing real estate and credit opportunities, and pursuing investments intended to generate both financial and social or environmental impact.

TPG was founded in 1992 by David Bonderman and James Coulter.

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