TPG RE Finance Trust (TRTX) Ready to Breakout?

A key level of resistance has formed in the chart of TPG RE Finance Trust Inc. (TRTX).  If that level is broken, a breakout could occur…

TPG RE Finance Trust Inc. (TRTX) is a commercial real estate finance company. It originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments.

The company has a portfolio of commercial mortgage loans worth an aggregate total of $5.5 billion. TRTX saw big losses in Q1 due to the pandemic, but has since recovered, with revenues in Q3 up 9% year-over-year. As a REIT, it currently has a dividend yield of 7.5%.

As of the end of the last quarter, the company had $225.6 million in cash. Its revenues are expected to be down 1.5% year over year this quarter, while earnings are estimated to be down 31.8%. Next quarter though, EPS is expected to rise 111.8%. The stock is undervalued with a trailing P/E of 11.24.

The stock has shown bearish long-term momentum, but flat near-term performance. This has led to a “Neutral” rating in our POWR Ratings system.

Take a look at the 1-year chart of TRTX below with my added notations…

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