TPG RE Finance Trust (NYSE:TRTX) Share Price Breaks Below 50-Day Moving Average - Should You Sell?

Key Points

• TRTX fell below its 50-day moving average: Shares traded as low as $6.54 and last changed hands at $6.556, below the $6.65 average.
• Analyst views are mixed: The consensus rating is Hold, with an average price target of $9.33; recent target changes ranged from Wells Fargo’s cut to $8 to JPMorgan’s increase to $10.
• Quarterly results missed expectations: TPG RE Finance Trust reported EPS of $0.07 versus the $0.25 consensus and revenue of $35.92 million versus $37.10 million expected. Its annualized dividend yield was 14.6%, with a payout ratio of 246.15%.

TPG RE Finance Trust, Inc. (NYSE:TRTX - Get Free Report)'s stock price crossed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $6.65 and traded as low as $6.54. TPG RE Finance Trust shares last traded at $6.5560, with a volume of 1,286,544 shares trading hands.

Wall Street Analyst Weigh In

TRTX has been the subject of a number of recent research reports. Wells Fargo & Company dropped their target price on TPG RE Finance Trust from $9.00 to $8.00 and set an "overweight" rating for the company in a report on Wednesday, October 28th. JPMorgan Chase & Co. increased their price target on TPG RE Finance Trust from $9.50 to $10.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Citigroup restated a "market outperform" rating on shares of TPG RE Finance Trust in a research report on Thursday, September 17th. Wall Street Zen raised shares of TPG RE Finance Trust from a "sell" rating to a "hold" rating in a research note on Saturday, October 17th. Finally, Weiss Ratings lowered shares of TPG RE Finance Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 30th. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $9.33.

TPG RE Finance Trust Price Performance

The company has a current ratio of 246.28, a quick ratio of 246.28 and a debt-to-equity ratio of 4.05. The company has a market capitalization of $497.14 million, a PE ratio of 16.81, a price-to-earnings-growth ratio of 1.54 and a beta of 1.48. The stock's 50-day moving average is $6.65 and its two-hundred day moving average is $7.92.

TPG RE Finance Trust (NYSE:TRTX - Get Free Report) last announced its earnings results on Monday, October 26th. The company reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.18). The business had revenue of $35.92 million for the quarter, compared to analysts' expectations of $37.10 million. TPG RE Finance Trust had a net margin of 13.13% and a return on equity of 5.21%. On average, equities analysts predict that TPG RE Finance Trust, Inc. will post 0.88 EPS for the current year.

TPG RE Finance Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Monday, September 28th were issued a dividend of $0.24 per share. The ex-dividend date was Monday, September 28th. This represents a $0.96 dividend on an annualized basis and a yield of 14.6%. TPG RE Finance Trust's payout ratio is presently 246.15%.

Insider Buying and Selling

In other TPG RE Finance Trust news, Director Michael Bradley Smith acquired 5,000 shares of the business's stock in a transaction on Friday, October 30th. The shares were bought at an average price of $6.52 per share, with a total value of $32,600.00. Following the transaction, the director directly owned 105,223 shares of the company's stock, valued at $686,053.96. The trade was a 4.99% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. 3.00% of the stock is owned by company insiders.

Institutional Trading of TPG RE Finance Trust

Large investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp purchased a new position in TPG RE Finance Trust in the 2nd quarter worth about $1,768,000. Bank of America Corp DE bought a new stake in TPG RE Finance Trust during the 2nd quarter valued at about $2,265,000. Arrowstreet Capital Limited Partnership boosted its position in TPG RE Finance Trust by 60.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 929,566 shares of the company's stock valued at $7,260,000 after buying an additional 350,020 shares during the period. Almitas Capital LLC purchased a new stake in TPG RE Finance Trust in the 2nd quarter valued at about $3,036,000. Finally, BlackRock Inc. purchased a new stake in TPG RE Finance Trust in the 2nd quarter valued at about $54,386,000. 57.12% of the stock is owned by hedge funds and other institutional investors.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc. is a commercial mortgage real estate investment trust that originates, acquires and manages commercial real estate debt investments. Its portfolio primarily consists of senior mortgage loans secured by commercial properties, along with other real estate-related debt instruments. The company focuses on institutional-quality properties in major U.S. markets, including select secondary markets. Its investments span property types such as office, multifamily, industrial, hotel and retail real estate.

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