Key Points
- Director Wade Loo bought 3,300 shares on Feb. 25 at an average price of $14.98, spending $49,434 and increasing his stake to 32,767 shares (an 11.2% rise).
- The company announced a reduced quarterly dividend of $0.07 (annualized $0.28) for a 1.9% yield and a high payout ratio of 87.43%; the ex-dividend date was Feb. 25 with payment on March 4.
- Shares fell ~3.7% to $14.87 after quarterly EPS matched estimates ($0.48) but revenue missed forecasts, and analysts have trimmed targets with an average price target of $19.29 and a "Moderate Buy" consensus.
Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) Director Wade Loo bought 3,300 shares of the business's stock in a transaction that occurred on Wednesday, February 25th. The shares were bought at an average cost of $14.98 per share, for a total transaction of $49,434.00. Following the transaction, the director owned 32,767 shares of the company's stock, valued at $490,849.66. The trade was a 11.20% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink.
Hercules Capital Stock Down 3.7%
NYSE HTGC traded down $0.57 on Friday, reaching $14.87. The company had a trading volume of 575,085 shares, compared to its average volume of 2,375,479. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 1.03. The company's fifty day moving average is $17.73 and its 200 day moving average is $18.21. Hercules Capital, Inc. has a 52-week low of $14.57 and a 52-week high of $21.14. The stock has a market capitalization of $2.73 billion, a P/E ratio of 8.15 and a beta of 0.84.
Hercules Capital (NYSE:HTGC - Get Free Report) last posted its earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.48. Hercules Capital had a net margin of 63.80% and a return on equity of 15.97%. The firm had revenue of $133.25 million during the quarter, compared to analyst estimates of $141.57 million. During the same quarter in the prior year, the business posted $0.49 EPS. Sell-side analysts anticipate that Hercules Capital, Inc. will post 1.96 earnings per share for the current fiscal year.
Hercules Capital Cuts Dividend
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 25th will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Wednesday, February 25th. Hercules Capital's payout ratio is presently 87.43%.
Analysts Set New Price Targets
Several research analysts have weighed in on HTGC shares. Keefe, Bruyette & Woods cut their price objective on Hercules Capital from $20.00 to $19.00 and set an "outperform" rating on the stock in a research report on Friday, February 13th. Wells Fargo & Company lowered their target price on Hercules Capital from $18.00 to $17.00 and set an "overweight" rating on the stock in a research note on Friday, February 13th. Wall Street Zen downgraded shares of Hercules Capital from a "buy" rating to a "hold" rating in a report on Saturday, December 20th. Capital One Financial set a $19.75 price objective on shares of Hercules Capital in a report on Monday, December 15th. Finally, Weiss Ratings lowered shares of Hercules Capital from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $19.29.
Read Our Latest Research Report on HTGC
Institutional Trading of Hercules Capital
A number of institutional investors have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC boosted its position in shares of Hercules Capital by 173.3% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 89,575 shares of the financial services provider's stock valued at $1,605,000 after acquiring an additional 56,797 shares during the period. International Assets Investment Management LLC lifted its stake in Hercules Capital by 308.9% in the 3rd quarter. International Assets Investment Management LLC now owns 79,555 shares of the financial services provider's stock worth $1,493,000 after purchasing an additional 60,100 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its stake in Hercules Capital by 42.3% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 884,946 shares of the financial services provider's stock worth $16,734,000 after purchasing an additional 263,222 shares in the last quarter. Tred Avon Family Wealth LLC bought a new position in Hercules Capital in the 3rd quarter valued at $1,042,000. Finally, Muzinich & Co. Inc. grew its position in shares of Hercules Capital by 34.5% during the 3rd quarter. Muzinich & Co. Inc. now owns 992,820 shares of the financial services provider's stock valued at $18,774,000 after purchasing an additional 254,651 shares in the last quarter. Hedge funds and other institutional investors own 19.69% of the company's stock.
About Hercules Capital
(
Get Free Report)
Hercules Capital, Inc is a specialty finance company organized as a business development company (BDC) that provides tailored debt financing solutions to high‐growth companies. Through its external management structure, Hercules Capital extends senior secured loans, subordinated debt and growth capital designed to support research and development, expansion initiatives and working capital needs. The firm primarily partners with venture capital and private equity sponsors to finance innovative enterprises across various developmental stages.
The company's investment portfolio is concentrated in technology, life sciences and sustainable and renewable technology sectors, reflecting its focus on industries with strong growth prospects and recurring capital requirements.
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