Hercules Capital (NYSE:HTGC) Sets New 12-Month Low – What’s Next?

Hercules Capital, Inc. (NYSE:HTGC)’s stock price reached a new 52-week low during trading on Friday . The stock traded as low as $14.17 and last traded at $14.4610, with a volume of 3106572 shares traded. The stock had previously closed at $15.43.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Weiss Ratings lowered Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday. Keefe, Bruyette & Woods lowered their price objective on Hercules Capital from $20.00 to $19.00 and set an “outperform” rating for the company in a research report on Friday, February 13th. Wall Street Zen lowered shares of Hercules Capital from a “buy” rating to a “hold” rating in a research note on Saturday, December 20th. Capital One Financial set a $19.75 price target on shares of Hercules Capital in a research note on Monday, December 15th. Finally, Lucid Cap Mkts upgraded shares of Hercules Capital to a “strong-buy” rating in a report on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.29.

Hercules Capital Price Performance

The stock’s 50-day moving average is $17.73 and its 200 day moving average is $18.21. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.48 and a current ratio of 1.48. The stock has a market capitalization of $2.64 billion, a PE ratio of 7.84 and a beta of 0.84.

Hercules Capital (NYSE:HTGC) last released its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.48. The company had revenue of $133.25 million during the quarter, compared to the consensus estimate of $141.57 million. Hercules Capital had a net margin of 63.80% and a return on equity of 15.97%. During the same quarter in the prior year, the firm posted $0.49 earnings per share. As a group, equities 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 $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Wednesday, February 25th. Hercules Capital’s dividend payout ratio is presently 87.43%.

Insider Buying and Selling at Hercules Capital

In related news, Director Thomas J. Fallon acquired 20,000 shares of the firm’s stock in a transaction on Tuesday, February 17th. The stock was bought at an average cost of $15.88 per share, with a total value of $317,600.00. Following the transaction, the director owned 120,369 shares of the company’s stock, valued at $1,911,459.72. The trade was a 19.93% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Wade Loo bought 3,300 shares of the stock in a transaction on Wednesday, February 25th. The stock was bought at an average price of $14.98 per share, for a total transaction of $49,434.00. Following the completion of the purchase, the director directly owned 32,767 shares in the company, valued at approximately $490,849.66. The trade was a 11.20% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have acquired 71,065 shares of company stock valued at $1,093,012. Corporate insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Hercules Capital

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC raised its stake in Hercules Capital by 173.3% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 89,575 shares of the financial services provider’s stock valued at $1,605,000 after purchasing an additional 56,797 shares during the last quarter. International Assets Investment Management LLC grew its holdings in shares of Hercules Capital by 308.9% during the third quarter. International Assets Investment Management LLC now owns 79,555 shares of the financial services provider’s stock worth $1,493,000 after buying an additional 60,100 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of Hercules Capital by 42.3% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 884,946 shares of the financial services provider’s stock worth $16,734,000 after buying an additional 263,222 shares in the last quarter. Tred Avon Family Wealth LLC acquired a new position in shares of Hercules Capital in the third quarter valued at approximately $1,042,000. Finally, Muzinich & Co. Inc. lifted its stake in shares of Hercules Capital by 34.5% during the third quarter. Muzinich & Co. Inc. now owns 992,820 shares of the financial services provider’s stock valued at $18,774,000 after buying an additional 254,651 shares during the period. 19.69% of the stock is currently owned by hedge funds and other institutional investors.

About Hercules Capital

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.