Investors Purchase Large Volume of Put Options on Trinity Capital (NASDAQ:TRIN)

Trinity Capital Inc. (NASDAQ:TRIN) was the target of unusually large options trading on Monday. Investors purchased 6,512 put options on the stock. This is an increase of 1,004% compared to the typical daily volume of 590 put options.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on TRIN. Citigroup reaffirmed an “outperform” rating on shares of Trinity Capital in a report on Tuesday, January 27th. Clear Str upgraded shares of Trinity Capital to a “strong-buy” rating in a research note on Wednesday, February 4th. Capital One Financial set a $17.00 price objective on shares of Trinity Capital in a research report on Thursday, December 11th. Loop Capital set a $17.00 price objective on Trinity Capital in a research note on Thursday, December 11th. Finally, Noble Financial began coverage on Trinity Capital in a report on Thursday, December 11th. They issued a “buy” rating on the stock. One 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 assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $16.29.

Trinity Capital Price Performance

Shares of NASDAQ:TRIN opened at $14.18 on Tuesday. The company has a market capitalization of $1.18 billion, a P/E ratio of 7.23 and a beta of 0.56. Trinity Capital has a 1-year low of $12.50 and a 1-year high of $17.20. The firm’s 50 day simple moving average is $15.67 and its two-hundred day simple moving average is $15.37.

Trinity Capital (NASDAQ:TRIN) last announced its quarterly earnings data on Wednesday, February 25th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.51 by $0.01. The firm had revenue of $58.89 million during the quarter, compared to analysts’ expectations of $79.83 million. Trinity Capital had a net margin of 46.18% and a return on equity of 14.97%. On average, sell-side analysts anticipate that Trinity Capital will post 2.06 earnings per share for the current fiscal year.

Trinity Capital Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be given a dividend of $0.17 per share. The ex-dividend date is Friday, March 13th. This represents a c) annualized dividend and a dividend yield of 14.4%. Trinity Capital’s dividend payout ratio (DPR) is currently 104.08%.

Insider Activity

In other news, CEO Kyle Steven Brown purchased 3,333 shares of the business’s stock in a transaction on Monday, March 2nd. The stock was acquired at an average cost of $14.90 per share, for a total transaction of $49,661.70. Following the purchase, the chief executive officer directly owned 376,775 shares in the company, valued at $5,613,947.50. This trade represents a 0.89% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Steve Louis Brown purchased 27,109 shares of Trinity Capital stock in a transaction dated Thursday, March 12th. The shares were acquired at an average cost of $14.75 per share, with a total value of $399,857.75. Following the transaction, the chairman directly owned 940,745 shares in the company, valued at approximately $13,875,988.75. The trade was a 2.97% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired 33,350 shares of company stock worth $492,561 over the last three months. Insiders own 6.38% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Nomura Asset Management Co. Ltd. bought a new stake in Trinity Capital in the 4th quarter valued at $25,000. Flagship Harbor Advisors LLC bought a new position in shares of Trinity Capital during the 4th quarter valued at about $27,000. MCF Advisors LLC purchased a new position in shares of Trinity Capital during the third quarter valued at about $52,000. Allworth Financial LP purchased a new position in shares of Trinity Capital during the second quarter valued at about $53,000. Finally, JPMorgan Chase & Co. bought a new stake in shares of Trinity Capital in the second quarter worth about $54,000. 24.62% of the stock is owned by hedge funds and other institutional investors.

About Trinity Capital

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.