Key Points
- Director Thomas Fallon bought 20,000 shares of Hercules Capital at an average price of $14.20 on Feb. 27, a $284,000 purchase that lifted his stake to 150,369 shares (a 15.34% increase), disclosed in an SEC filing.
- Several insiders also bought stock this week (collectively over ~46,000 shares), a sign of management confidence at current price levels despite recent weakness.
- Hercules cut its quarterly dividend to $0.07 (annualized $0.28, ~2.0% yield) and carries a high payout ratio (~87%), while analysts have trimmed price targets and unusual bearish options flow (≈28,062 puts) has pressured sentiment.
Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) insider Kiersten Zaza Botelho acquired 1,300 shares of Hercules Capital stock in a transaction on Friday, February 27th. The shares were bought at an average cost of $14.21 per share, for a total transaction of $18,473.00. Following the completion of the transaction, the insider owned 93,336 shares in the company, valued at approximately $1,326,304.56. This trade represents a 1.41% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.
Hercules Capital Trading Down 7.9%
Shares of NYSE HTGC traded down $1.22 during midday trading on Friday, hitting $14.22. 10,141,365 shares of the company traded hands, compared to its average volume of 3,649,382. Hercules Capital, Inc. has a 12-month low of $14.10 and a 12-month high of $21.14. The firm has a market cap of $2.61 billion, a P/E ratio of 7.77 and a beta of 0.84. The stock has a 50-day moving average price of $17.64 and a 200 day moving average price of $18.17. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.48 and a current ratio of 1.48.
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 for the quarter, hitting analysts' consensus estimates of $0.48. The firm had revenue of $133.25 million for the quarter, compared to the consensus estimate of $141.57 million. Hercules Capital had a return on equity of 15.97% and a net margin of 63.80%.During the same quarter in the prior year, the business earned $0.49 EPS. As a group, analysts expect that Hercules Capital, Inc. will post 1.96 earnings per share for the current 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 issued a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Wednesday, February 25th. Hercules Capital's payout ratio is 87.43%.
Key Stories Impacting Hercules Capital
Here are the key news stories impacting Hercules Capital this week:
- Positive Sentiment: Multiple insiders (CEO Scott Bluestein, CFO Seth Meyer and several directors) bought stock this week — collectively over ~46,000 shares — signaling management confidence at current levels. See the CEO’s SEC filing for details. CEO SEC Filing
- Neutral Sentiment: Analysts have modestly lowered fair-value estimates and price targets (examples: consolidated fair value trimmed from ~$21.22 to ~$20.31; several firms trimmed targets and ratings), a recalibration rather than a wholesale downgrade of the thesis. Analyst Note
- Negative Sentiment: Unusual bearish options flow — investors bought ~28,062 put contracts (a >1,200% jump vs typical daily put volume) — a strong short-term bearish signal that can amplify downward pressure.
- Negative Sentiment: Hercules cut its quarterly dividend to $0.07 (annualized $0.28), reducing income appeal for yield‑seeking investors and increasing concern about payout sustainability (payout ratio ~87%). See company data and dividend details. MarketBeat HTGC
- Negative Sentiment: Recent analyst downgrades and price‑target cuts (Wells Fargo, Keefe Bruyette & Woods, Piper Sandler and others) have pressured sentiment and likely contributed to selling. Analyst Coverage
Wall Street Analysts Forecast Growth
Several research firms recently commented on HTGC. Keefe, Bruyette & Woods dropped their price objective on shares of Hercules Capital from $20.00 to $19.00 and set an "outperform" rating on the stock in a research note on Friday, February 13th. Lucid Cap Mkts upgraded Hercules Capital to a "strong-buy" rating in a research note on Monday, December 15th. Piper Sandler downgraded Hercules Capital from an "overweight" rating to a "neutral" rating and reduced their price target for the company from $20.50 to $17.50 in a report on Friday, February 13th. Wall Street Zen downgraded shares of Hercules Capital from a "buy" rating to a "hold" rating in a research report on Saturday, December 20th. Finally, Wells Fargo & Company reduced their price objective on shares of Hercules Capital from $18.00 to $17.00 and set an "overweight" rating for the company in a research note on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $19.29.
Check Out Our Latest Report on Hercules Capital
Institutional Trading of Hercules Capital
Several hedge funds have recently bought and sold shares of the stock. Assetmark Inc. lifted its position in shares of Hercules Capital by 173.4% during the 2nd quarter. Assetmark Inc. now owns 1,386 shares of the financial services provider's stock valued at $25,000 after buying an additional 879 shares in the last quarter. CWM LLC increased its holdings in Hercules Capital by 79.6% in the 2nd quarter. CWM LLC now owns 1,381 shares of the financial services provider's stock worth $25,000 after acquiring an additional 612 shares in the last quarter. GHP Investment Advisors Inc. bought a new stake in Hercules Capital during the 2nd quarter worth approximately $27,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in Hercules Capital during the fourth quarter valued at approximately $27,000. Finally, Caitlin John LLC bought a new position in shares of Hercules Capital in the third quarter worth approximately $29,000. 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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