TPG Inc. (NASDAQ:TPG) may have escaped the bottom of $26 on March 15 to trade at the current $29.14, but it is not out of the woods yet. The private-equity company reported a net income of $41.2 million in the fourth quarter, down from $45 million in the prior year.
The lower earnings were attributed to a slowdown in the company’s appreciation in the value of investments in its first year since going public. Following the quarterly results, the stock fell about 2%.
At the current price of about $29.14, TPG is trading slightly below the IPO price of $29.50. The company went public in a year characterized by frothiness in stock markets and booming SPACs.
This could have shifted attention from the stock, playing a role in a slow takeoff. Also, TPG stock has been dampened by growing fears over potential rate hikes and the Ukrainian crisis this year.
However, it’s not all bleak for TPG. The assets under management rose to $113.6 billion in the fourth quarter, compared to $109.1 billion in the third quarter. The AUM is also a significant jump from $89.5 billion in the prior year, pointing to significant inflows from institutional investors. The quarter report underlines that TPG’s growth story remains intact, but investors may prefer to stay away.
TPG slides after quarter results disappoint
Source – TradingView
Technical indicators show that TPG is trading below the resistance of $30. The stock weakness has been accelerated by the mixed quarterly earnings report. An RSI reading of 47 shows that the stock has room to decline further, up to the support of $28 or lower.
Concluding thoughts
TPG results showed weaker earnings, but its AUM is rising. The company is made for the future as it continues to attract institutional investors, and the stock could rise again. The stock is only for long-term focused investors, with buy trades at around $28.
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