Horizon Technology Finance Corporation’s (HRZN) “Neutral” Rating Reaffirmed at National Securities
Horizon Technology Finance Corporation (NASDAQ:HRZN)‘s stock had its “neutral” rating reissued by equities research analysts at National Securities in a research note issued on Monday. They presently have a $10.00 target price on the investment management company’s stock, down from their previous target price of $11.00. National Securities’ price target points to a potential downside of 7.92% from the company’s current price.
The analysts wrote, “• HRZN experienced a 2.0% sequential Q/Q decline in NAV/share to $11.87 from $12.11, generating an annualized economic return of 2.1% for the quarter. In 2Q17, Interleukin Genetics was placed on non-accrual status with a cost of $4.0 million. HRZN began to work with the sponsors at Interleukin as they pursued a clinical services agreement but when it became apparent they wouldn’t get this they instead began to work on liquidating the company. What is concerning, in our opinion, is the fact that Interleukin was marked at 98% of cost as of 3/31/17.
• NII/share was light at $0.24/share, contrasted with a $0.30/share quarterly dividend and our estimate of $0.29/share. We had previously estimated a reduction in the dividend to $0.27/share in 3Q18 but are now anticipating a much more severe cut to $0.22/share in 1Q18. The light NII/share during the quarter came about even as the incentive fee was not fully earned and the company had the benefit of $327,000 in prepayment fees during the quarter. We cannot fathom how, with a fully earned incentive fee and lower prepayments (and thus lower fee income), HRZN will earn the $0.30/share quarterly dividend going forward.
• We are revising our 2017 NII/share estimate to $0.98 from $1.17 and our 2018 NII/share estimate to $0.96 from $1.16.”
A number of other research analysts have also commented on HRZN. Keefe, Bruyette & Woods reaffirmed a “hold” rating and issued a $11.00 price objective on shares of Horizon Technology Finance Corporation in a report on Friday, April 28th. Zacks Investment Research downgraded Horizon Technology Finance Corporation from a “hold” rating to a “strong sell” rating in a research report on Friday, May 5th. Compass Point restated a “sell” rating and set a $10.00 price objective on shares of Horizon Technology Finance Corporation in a research report on Thursday, July 6th. Maxim Group restated a “hold” rating on shares of Horizon Technology Finance Corporation in a research report on Wednesday, August 2nd. Finally, UBS AG downgraded Horizon Technology Finance Corporation from a “market perform” rating to an “underperform” rating in a research report on Thursday, August 3rd. Four investment analysts have rated the stock with a sell rating and four have assigned a hold rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of $11.00.
Horizon Technology Finance Corporation (NASDAQ:HRZN) opened at 10.86 on Monday. The firm’s 50-day moving average price is $11.35 and its 200 day moving average price is $11.24. Horizon Technology Finance Corporation has a one year low of $9.64 and a one year high of $13.93.
Horizon Technology Finance Corporation (NASDAQ:HRZN) last posted its earnings results on Tuesday, August 1st. The investment management company reported $0.24 earnings per share for the quarter, missing analysts’ consensus estimates of $0.27 by $0.03. The business had revenue of $5.88 million for the quarter, compared to analyst estimates of $6.71 million. Horizon Technology Finance Corporation had a positive return on equity of 10.24% and a negative net margin of 6.72%. The firm’s revenue was down 35.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.39 earnings per share. Equities research analysts expect that Horizon Technology Finance Corporation will post $1.07 earnings per share for the current fiscal year.
A number of hedge funds have recently modified their holdings of the company. West Family Investments Inc. increased its stake in Horizon Technology Finance Corporation by 49.0% in the second quarter. West Family Investments Inc. now owns 158,628 shares of the investment management company’s stock worth $1,866,000 after buying an additional 52,156 shares in the last quarter. UBS Group AG boosted its position in shares of Horizon Technology Finance Corporation by 18.5% in the first quarter. UBS Group AG now owns 370,154 shares of the investment management company’s stock valued at $4,120,000 after buying an additional 57,715 shares during the period. Infrastructure Capital Advisors LLC bought a new position in shares of Horizon Technology Finance Corporation during the first quarter valued at $184,000. Nwam LLC bought a new position in shares of Horizon Technology Finance Corporation during the first quarter valued at $174,000. Finally, LSV Asset Management boosted its position in shares of Horizon Technology Finance Corporation by 1.3% in the first quarter. LSV Asset Management now owns 191,000 shares of the investment management company’s stock valued at $2,125,000 after buying an additional 2,500 shares during the period. Institutional investors and hedge funds own 17.39% of the company’s stock.
Horizon Technology Finance Corporation Company Profile
Horizon Technology Finance Corporation is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to maximize investment portfolio’s total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments.
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