TPVG Stock Recent News

TriplePoint Venture Growth offers a high dividend yield but has a risky portfolio and poor net asset value performance, making it a less attractive investment. TriplePoint focuses on tech and venture growth stage companies, which increases potential returns but also elevates risks, especially in a high-interest-rate environment. The company's net asset value has declined consistently, and its high non-accruals and writedowns suggest ongoing financial issues within its portfolio.

The fears of BDC dividends becoming unsustainable are rising. The primary driver for this is falling interest rates. While I fully appreciate this risk, in my opinion, by being very selective, investors can keep their attractive BDC dividends safe.

We take a look at the action in business development companies through the second week of August and highlight some of the key themes we are watching. BDCs underperformed with a total return of -2% due to poor quarterly results or dividend cuts. TriplePoint Venture Growth highlights the disconnect between dividend yield and total NAV return.

TriplePoint Venture Growth has faced headwinds, cutting its dividend by 25% and underperforming peers in the BDC sector the past two years. TPVG's latest earnings showed missed estimates, declining portfolio value, but also some positive signs such as new commitments and reduced leverage. While TPVG's dividend is currently covered, risks of an additional cut remain due to declining portfolio value and potential economic downturns.

TriplePoint Venture Growth BDC stock price plummeted 7% to a new 52-week low after worse-than-expected Q2 results. TPVG realigned its dividend with lower net investment income, resulting in a 25% cut to $0.30 per share per quarter. Ongoing investment losses led to a QoQ drop in net asset value, causing TriplePoint stock to sell at an 18% discount.

TriplePoint Venture Growth stock dropped after its Q2 2024 results. TriplePoint Venture's distribution cut was to blame. With its equity issuance window closed, TPVG has a whole host of challenges to overcome, and the new distribution looks unsustainable.

TriplePoint Venture Growth (TPVG) operates as a BDC focusing on venture capital backed companies with a high dividend yield of 14.7%. TriplePoint Venture continues to underperform other peer BDCs, with non-accrual rates increasing and distribution being cut by 25% as of the latest Q2 earnings. Despite trading at a discount to NAV, TPVG's poor performance in NII and portfolio value decline warrant a sell rating.

TriplePoint Venture Growth (TPVG) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.53 per share a year ago.

TriplePoint Venture Growth (NYSE:TPVG ) Q2 2024 Earnings Conference Call August 7, 2024 5:00 PM ET Company Participants Jim Labe - Chief Executive Officer & Chairman Sajal Srivastava - President & Chief Investment Officer Chris Mathieu - Chief Financial Officer Conference Call Participants Crispin Love - Piper Sandler Finian O'Shea - Wells Fargo Doug Harter - UBS Christopher Nolan - Ladenburg Thalmann Operator Good afternoon, ladies and gentlemen, and welcome to the TriplePoint Venture Growth BDC Corporation Second Quarter of 2024 Earnings Conference Call. At this time, all lines have been placed in a listen-only mode.

TriplePoint Venture Growth (TPVG) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.