Insider Buying: Hercules Capital (NYSE:HTGC) Insider Buys 1,300 Shares of Stock

Hercules Capital, Inc. (NYSE:HTGC) insider Kiersten Zaza Botelho bought 1,300 shares of the stock in a transaction on Friday, February 27th. The shares were bought at an average price of $14.21 per share, for a total transaction of $18,473.00. Following the acquisition, the insider owned 93,336 shares in the company, valued at $1,326,304.56. The trade was a 1.41% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

Hercules Capital Price Performance

Shares of NYSE:HTGC traded down $1.22 on Friday, hitting $14.22. The company had a trading volume of 10,141,365 shares, compared to its average volume of 2,633,990. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 1.03. The company has a market cap of $2.61 billion, a PE ratio of 7.77 and a beta of 0.84. Hercules Capital, Inc. has a 52-week low of $14.10 and a 52-week high of $21.14. The business has a 50 day moving average of $17.73 and a 200 day moving average of $18.21.

Hercules Capital (NYSE:HTGC) last announced its earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share for the quarter, meeting the consensus estimate of $0.48. The firm 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 previous year, the company posted $0.49 EPS. As a group, equities analysts anticipate that Hercules Capital, Inc. will post 1.96 earnings per share for the current fiscal year.

Hercules Capital Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 4th. Investors of record on Wednesday, February 25th will be paid a dividend of $0.07 per share. The ex-dividend date of this dividend is Wednesday, February 25th. This represents a $0.28 annualized dividend and a dividend yield of 2.0%. Hercules Capital’s dividend payout ratio is presently 87.43%.

Key Hercules Capital News

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

Institutional Trading of Hercules Capital

Institutional investors and hedge funds have recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC grew its position in Hercules Capital by 173.3% during 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 increased its stake in 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 acquiring an additional 60,100 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of 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 during the period. Tred Avon Family Wealth LLC acquired a new position in shares of Hercules Capital in the 3rd quarter valued at about $1,042,000. Finally, Muzinich & Co. Inc. grew its holdings 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 worth $18,774,000 after purchasing an additional 254,651 shares during the period. 19.69% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

HTGC has been the subject of several analyst reports. Keefe, Bruyette & Woods cut their price target on Hercules Capital from $20.00 to $19.00 and set an “outperform” rating for the company in a report on Friday, February 13th. Capital One Financial set a $19.75 price objective on Hercules Capital in a research report on Monday, December 15th. Weiss Ratings downgraded Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday. Piper Sandler lowered Hercules Capital from an “overweight” rating to a “neutral” rating and decreased their price target for the stock from $20.50 to $17.50 in a research note on Friday, February 13th. Finally, Wells Fargo & Company lowered their price target on Hercules Capital from $18.00 to $17.00 and set an “overweight” rating for the company in a report on Friday, February 13th. One research 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 stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $19.29.

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.