On November 19, 2023, James Labe, CEO of TriplePoint Venture Growth BDC Corp. (NYSE:TPVG), purchased 50,000 shares of the company’s stock in a transaction valued at $309,500. The shares were acquired at an average price of $6.19 each, increasing Labe’s total ownership to 886,139 shares, worth approximately $5,485,200.41. This acquisition represents a 5.98% increase in his stake in the firm.
The details of this transaction were revealed through a filing with the U.S. Securities and Exchange Commission (SEC). This move underscores Labe’s confidence in the company’s future performance, particularly as it navigates the competitive landscape of venture capital and growth-stage investments.
Recent Stock Performance and Dividend Declaration
On the trading day following Labe’s purchase, TriplePoint Venture Growth BDC’s stock rose by $0.06, reaching $6.31 during market hours. The company experienced a trading volume of 450,156 shares, notably higher than its average of 321,312 shares. Over the past year, the stock has fluctuated between a low of $5.24 and a high of $8.50. Currently, TriplePoint Venture Growth BDC has a market capitalization of $254.72 million, a price-to-earnings ratio of 7.42, and a beta of 1.47. The fifty-day moving average stands at $5.78, while the two-hundred-day moving average is $6.44.
The firm also announced a quarterly dividend of $0.23, scheduled for distribution on December 30, 2023. Stockholders on record as of December 16, 2023, will be eligible for this payout. This dividend translates to an annualized rate of $0.92 and a yield of 14.6%. Notably, the company’s payout ratio is currently at 108.24%, suggesting a commitment to returning value to shareholders.
Institutional Investments and Analyst Perspectives
Institutional interest in TriplePoint Venture Growth BDC has been notable, with several hedge funds recently adjusting their positions. Two Sigma Investments LP increased its stake by 58.6% in the third quarter, acquiring an additional 226,479 shares and now holding 612,727 shares valued at $3,535,000. Similarly, Marshall Wace LLP expanded its holdings by 44.9%, adding 163,916 shares, bringing its total to 529,201 shares worth $3,710,000.
In terms of analyst ratings, recent evaluations have been mixed. UBS Group downgraded its target price from $6.50 to $5.50, maintaining a “neutral” rating. Piper Sandler also adjusted its price objective from $7.00 to $6.00, while Zacks Research changed its rating from “hold” to “strong sell.” Currently, the consensus rating for TriplePoint Venture Growth BDC is “Reduce,” with a target price averaging $6.25.
TriplePoint Venture Growth BDC specializes in investments in venture capital-backed companies at the growth stage. The firm also provides various debt financing options, including growth capital loans, secured loans, and direct equity investments.
As the company continues to attract both institutional interest and retail investment, its performance in the coming months will be closely monitored by shareholders and analysts alike.
