(HPS) John Hancock Preferred - Ratings and Ratios

John Hancock Preferred Income III Closed Fund (NYSE:HPS) is a USA-based investment fund that specializes in preferred stock, providing a unique blend of income generation and relatively lower volatility compared to common stocks.

The funds investment strategy focuses on preferred securities, which are hybrid instruments that combine elements of debt and equity, offering a higher claim on assets and dividends than common stock but ranking below bonds in the capital structure. This positioning can provide a relatively stable source of income, making HPS appealing to investors seeking regular returns.

Analyzing the technical data, the stock is currently priced at $14.50, slightly above its 20-day Simple Moving Average (SMA) of $14.22, indicating a potential short-term bullish trend. However, it is below its 200-day SMA of $15.02, suggesting a longer-term bearish trend. The Average True Range (ATR) of $0.30, or 2.07%, indicates moderate volatility. The stock is trading between its 52-week high of $16.40 and low of $13.51, showing it has room to maneuver in either direction.

With Assets Under Management (AUM) of $528.50M USD, HPS maintains a respectable size within the preferred stock fund category, potentially offering a balance between liquidity and investment diversification. The funds size and focus on preferred stock can be attractive to investors looking for a diversified portfolio with a steady income stream.

Forecasting future performance based on the available data, if the funds price can break through the 50-day SMA of $14.52 and sustain it, we might see a move towards the 200-day SMA of $15.02. Conversely, failure to hold above $14.22 could signal a decline towards the 52-week low of $13.51. Given the current ATR, a price movement of around 2% in either direction is to be expected in the short term. Thus, a prudent strategy could involve closely monitoring the $14.22 and $14.52 levels for potential trading opportunities.