Hercules Capital (NYSE:HTGC) Stock Breaks Below 200-Day Moving Average – Here’s Why

Hercules Capital, Inc. (NYSE:HTGC)’s stock price crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $16.10 and traded as low as $15.87. Hercules Capital shares last traded at $16.0940, with a volume of 1,658,309 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on HTGC. UBS Group raised shares of Hercules Capital from a “neutral” rating to a “buy” rating and increased their target price for the stock from $15.50 to $18.50 in a report on Tuesday, September 1st. Ladenburg Thalmann & Co. Inc. decreased their target price on Hercules Capital from $21.00 to $20.00 and set a “buy” rating on the stock in a research note on Friday, July 31st. Finally, Weiss Ratings raised Hercules Capital from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, October 28th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $18.89.

Hercules Capital Stock Performance

The stock has a market capitalization of $3.00 billion, a P/E ratio of 8.52 and a beta of 0.82. The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.41 and a current ratio of 1.41. The business’s fifty day moving average price is $16.82 and its two-hundred day moving average price is $16.09.

Hercules Capital (NYSE:HTGC) last issued its earnings results on Thursday, October 29th. The financial services provider reported $0.47 EPS for the quarter, hitting analysts’ consensus estimates of $0.47. Hercules Capital had a net margin of 62.84% and a return on equity of 15.72%. The business had revenue of $135.69 million for the quarter, compared to the consensus estimate of $144.11 million. During the same period in the prior year, the firm earned $0.49 EPS. As a group, sell-side analysts forecast that Hercules Capital, Inc. will post 1.94 earnings per share for the current year.

Hercules Capital Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 17th. Stockholders of record on Tuesday, November 10th will be given a dividend of $0.07 per share. This is a negative change from Hercules Capital’s previous quarterly dividend of $0.40. The ex-dividend date is Tuesday, November 10th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.8%. Hercules Capital’s payout ratio is 86.02%.

Institutional Trading of Hercules Capital

Several institutional investors have recently added to or reduced their stakes in HTGC. Sound Income Strategies LLC lifted its holdings in Hercules Capital by 3.0% during the 3rd quarter. Sound Income Strategies LLC now owns 3,777,695 shares of the financial services provider’s stock worth $62,521,000 after buying an additional 110,177 shares in the last quarter. Van ECK Associates Corp increased its holdings in shares of Hercules Capital by 22.6% in the 2nd quarter. Van ECK Associates Corp now owns 3,877,634 shares of the financial services provider’s stock valued at $61,150,000 after acquiring an additional 713,653 shares during the period. Legal & General Group Plc acquired a new stake in Hercules Capital in the second quarter valued at about $26,523,000. Tectonic Advisors LLC lifted its stake in Hercules Capital by 9.5% in the 3rd quarter. Tectonic Advisors LLC now owns 1,101,790 shares of the financial services provider’s stock valued at $18,521,000 after buying an additional 95,382 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of Hercules Capital by 1.9% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,047,257 shares of the financial services provider’s stock valued at $17,604,000 after purchasing an additional 19,823 shares in the last quarter. Institutional investors and hedge funds own 19.69% of the company’s stock.

Hercules Capital Company Profile

Hercules Capital, Inc. is a specialty finance company and business development company that provides financing to venture capital-backed businesses. Its lending focuses primarily on companies in the technology, life sciences and sustainable and renewable technology sectors. The company offers venture debt and growth capital through products such as senior secured loans, equipment financing and working capital facilities. Its financing is designed to support businesses at different stages, including product development, expansion and other growth initiatives.