Horizon Technology Finance Corporation (NASDAQ:HRZN) Plans Monthly Dividend of $0.06

Horizon Technology Finance Corporation (NASDAQ:HRZN) declared a monthly dividend on Tuesday, August 4th. Stockholders of record on Wednesday, September 16th will be paid a dividend of 0.06 per share by the investment management company on Thursday, October 15th. This represents a c) annualized dividend and a dividend yield of 15.8%. The ex-dividend date of this dividend is Wednesday, September 16th.

Horizon Technology Finance has raised its dividend by an average of 0.0%annually over the last three years. Horizon Technology Finance has a payout ratio of 62.6% meaning its dividend is sufficiently covered by earnings. Research analysts expect Horizon Technology Finance to earn $0.81 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 88.9%.

Horizon Technology Finance Stock Up 1.0%

NASDAQ HRZN opened at $4.55 on Wednesday. Horizon Technology Finance has a 12-month low of $3.80 and a 12-month high of $7.76. The company has a market capitalization of $310.79 million, a PE ratio of 10.59 and a beta of 0.98. The firm’s 50 day moving average is $4.48 and its 200-day moving average is $4.88.

Horizon Technology Finance (NASDAQ:HRZN) last announced its earnings results on Tuesday, August 4th. The investment management company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.02). Horizon Technology Finance had a return on equity of 13.63% and a net margin of 22.55%.The business had revenue of ($44.66) million for the quarter, compared to analyst estimates of $25.22 million. As a group, sell-side analysts expect that Horizon Technology Finance will post 0.69 EPS for the current year.

Key Headlines Impacting Horizon Technology Finance

Here are the key news stories impacting Horizon Technology Finance this week:

• Positive Sentiment: Horizon declared regular monthly distributions of $0.06 per share for September and December, equivalent to an annualized yield of approximately 15.8% based on the reported share price. The company also announced a $0.03-per-share special dividend payable in November, strengthening the income appeal of HRZN. Horizon Technology Announces Fourth-Quarter Dividend Distributions
• Positive Sentiment: Second-quarter total investment income increased to $25.0 million from $24.5 million a year earlier. Horizon funded nine loans totaling $72.7 million and ended the quarter with a committed backlog of $228 million, indicating ongoing demand for its financing.
• Positive Sentiment: The board expanded HRZN’s share-repurchase authorization to $20 million. The company already repurchased 1.37 million shares at an average price of $4.54 during the quarter, which could support per-share value and signal management’s view that the stock is undervalued.
• Neutral Sentiment: Horizon reported a $676.7 million investment portfolio, $228.6 million of available liquidity and net asset value of $6.23 per share. These figures provide balance-sheet support, although the stock remains below reported NAV.
• Negative Sentiment: Second-quarter earnings were $0.11 per share, below the $0.13 consensus estimate and down from $0.28 a year earlier. Net investment income included $0.07 per share of non-recurring merger expenses, while the company reported a $37.3 million decrease in net assets from operations. Horizon Technology Finance Lags Q2 Earnings and Revenue Estimates

About Horizon Technology Finance

Horizon Technology Finance Corporation is a specialty finance company organized as a business development company (BDC) that provides private credit solutions to venture capital and private equity-backed technology, life science and healthcare companies. The firm targets companies at various stages of development, offering secured debt financing structures such as first?lien and second?lien loans, as well as equity co?investment opportunities in select portfolio companies.

Horizon Technology Finance’s investment strategy emphasizes deployment of capital in U.S.?based enterprises with proven technology, strong management teams and clear paths to growth.