TriplePoint Venture Growth: Inflection Point (Rating Upgrade)

Nov. 12, 2024 10:56 PM ETTriplePoint Venture Growth (TPVG)
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The Asian Investor
26.67K Followers
(8min)

Summary

  • TriplePoint Venture Growth saw a significant breakout after Q3 results, driven by a major decline in its non-accrual percentage, improving portfolio quality.
  • The BDC's net investment income of $0.35 per-share implied a dividend coverage ratio of 1.17X for its $0.30 dividend. Compared to Q2'24, the coverage situation drastically improved.
  • Improved loan performance and reduced non-accruals have flipped TPVG's risk profile, justifying an upgrade to a buy rating.
  • Despite past volatility, TPVG's credit issues seem resolved, presenting a revaluation opportunity if net asset value stabilizes and balance sheet quality improves further.

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TriplePoint Venture Growth's (NYSE:TPVG) shares saw a significant breakout to the upside after the BDC reported its results for the third fiscal quarter. The BDC slightly missed net investment income expectations, but had otherwise quite a strong

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I look for high-risk, high-reward situations. Five largest portfolio holdings: Bitcoin, SoFi, Alibaba, PayPal, Western Alliance. Early buyer of cryptocurrencies. I live in Thailand :)

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HTGC, TPVG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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