Stock Traders Buy Large Volume of Put Options on Trinity Capital (NASDAQ:TRIN)

Key Points

• Investors executed an unusually large volume of put options on Trinity Capital — a total of 6,512 put contracts, which is a 1,004% increase versus the average daily volume of 590 puts.
• Trinity pays a high monthly dividend of $0.17 (annualized yield 14.3%), but the payout ratio is elevated at 104.08%, signaling potential sustainability risk.
• The stock traded at $14.26 on the day (market cap about $1.19B); recent results showed EPS of $0.52 beating estimates while revenue missed, and analysts have a consensus rating of "Moderate Buy" with a $16.29 price target.

Trinity Capital Inc. (NASDAQ:TRIN - Get Free Report) was the target of some unusual options trading on Monday. Investors acquired 6,512 put options on the company. This is an increase of 1,004% compared to the average volume of 590 put options.

Trinity Capital Price Performance

TRIN traded down $0.16 during trading hours on Monday, reaching $14.26. The company's stock had a trading volume of 905,982 shares, compared to its average volume of 1,355,645. The stock has a market cap of $1.19 billion, a PE ratio of 7.28 and a beta of 0.56. Trinity Capital has a fifty-two week low of $12.50 and a fifty-two week high of $17.20. The business's 50-day moving average is $15.70 and its 200-day moving average is $15.39.

Trinity Capital (NASDAQ:TRIN - Get Free Report) last posted its earnings results on Wednesday, February 25th. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.01. The company had revenue of $58.89 million during the quarter, compared to analysts' expectations of $79.83 million. Trinity Capital had a return on equity of 14.97% and a net margin of 46.18%. Analysts expect that Trinity Capital will post 2.06 EPS for the current year.

Trinity Capital Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be issued a $0.17 dividend. This represents a c) annualized dividend and a dividend yield of 14.3%. The ex-dividend date is Friday, March 13th. Trinity Capital's dividend payout ratio is currently 104.08%.

Insider Transactions at Trinity Capital

In other Trinity Capital news, CEO Kyle Steven Brown acquired 3,333 shares of the company's stock in a transaction dated Monday, March 2nd. The shares were acquired at an average cost of $14.90 per share, with a total value of $49,661.70. Following the acquisition, the chief executive officer directly owned 376,775 shares of the company's stock, valued at approximately $5,613,947.50. The trade was a 0.89% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Over the last ninety days, insiders have purchased 6,241 shares of company stock worth $92,703. Company insiders own 6.38% of the company's stock.

Hedge Funds Weigh In On Trinity Capital

Hedge funds have recently bought and sold shares of the company. Virtu Financial LLC acquired a new stake in Trinity Capital during the 4th quarter worth approximately $507,000. Invesco Ltd. increased its position in shares of Trinity Capital by 22.4% during the fourth quarter. Invesco Ltd. now owns 1,026,680 shares of the company's stock worth $15,041,000 after acquiring an additional 187,744 shares during the period. First Commonwealth Financial Corp PA boosted its holdings in Trinity Capital by 3.4% in the fourth quarter. First Commonwealth Financial Corp PA now owns 24,540 shares of the company's stock valued at $360,000 after purchasing an additional 799 shares during the period. Mercer Global Advisors Inc. ADV acquired a new position in Trinity Capital during the 4th quarter worth $2,154,000. Finally, Beacon Pointe Advisors LLC increased its holdings in Trinity Capital by 15.2% during the 4th quarter. Beacon Pointe Advisors LLC now owns 78,130 shares of the company's stock worth $1,145,000 after purchasing an additional 10,292 shares during the period. Institutional investors and hedge funds own 24.62% of the company's stock.

Wall Street Analysts Forecast Growth

TRIN has been the subject of several recent research reports. Loop Capital set a $17.00 price target on shares of Trinity Capital in a research report on Thursday, December 11th. Noble Financial began coverage on shares of Trinity Capital in a research note on Thursday, December 11th. They set a "buy" rating on the stock. Citizens Jmp set a $17.50 target price on Trinity Capital in a research report on Monday, December 8th. Citigroup reaffirmed an "outperform" rating on shares of Trinity Capital in a report on Tuesday, January 27th. Finally, Clear Str upgraded Trinity Capital to a "strong-buy" rating in a research report on Wednesday, February 4th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Trinity Capital has a consensus rating of "Moderate Buy" and a consensus price target of $16.29.

Trinity Capital Company Profile

Trinity Capital Corporation NASDAQ: TRIN is a publicly traded business development company that provides flexible financing solutions to venture-backed and growth-stage companies. As a venture lender, Trinity Capital offers customized capital structures, including secured debt and equity co-investment, designed to support companies that have progressed beyond early-stage funding but still require non-dilutive growth capital.

The company focuses its investments on technology-driven sectors such as software, fintech, healthcare, life sciences and cleantech.

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