(HPI) John Hancock Preferred - Ratings and Ratios

The John Hancock Preferred Income Closed Fund (NYSE:HPI) is a USA-based investment fund that focuses on preferred stock, a type of hybrid security that combines elements of debt and equity. This fund is designed to provide investors with a regular income stream, typically in the form of dividend payments.

Analyzing the funds characteristics, we understand that its investment strategy is centered around preferred stocks, which are often issued by companies with a higher credit rating. The funds portfolio is likely diversified across various sectors, with a focus on generating stable income. Given its closed-end fund structure, HPI can employ leverage to enhance returns, which may amplify both gains and losses.

From a technical analysis perspective, the funds price is currently at $16.10, slightly above its 50-day Simple Moving Average (SMA) of $16.06, indicating a potential bullish trend. The 20-day SMA is $15.69, suggesting that the fund has been trending upwards in the short term. However, the 200-day SMA stands at $16.65, indicating that the fund is still below its long-term average. The Average True Range (ATR) is 0.32, or 1.98%, suggesting moderate volatility. Considering these technical indicators, a potential trading strategy could involve monitoring the funds price movement in relation to its SMAs and adjusting positions accordingly.

Fundamentally, the fund has Assets Under Management (AUM) of $478.57 million USD, indicating a moderate size that can provide a stable base for investment. The preferred stock focus allows the fund to capitalize on the relatively higher yields offered by this asset class compared to traditional fixed-income securities.

Forecasting the funds performance, we can anticipate that its price will be influenced by the overall direction of interest rates, as well as the creditworthiness of the issuers in its portfolio. If interest rates remain stable or decline, HPI may benefit from the relatively higher yields on its preferred stock holdings, potentially driving the price upwards. Conversely, a rise in interest rates could lead to a decline in the funds price as newer issues with higher yields become more attractive. Based on the current technical and fundamental data, a potential target price for HPI could be around $17.50, representing a 8.7% increase from its current price, assuming stable interest rates and continued demand for preferred stocks. However, this forecast is contingent upon various market factors and should be closely monitored.