Horizon Technology Finance Corporation (NASDAQ:HRZN) was downgraded by stock analysts at National Securities from a “neutral” rating to a “sell” rating in a report released on Tuesday. They presently have a $10.00 price objective on the investment management company’s stock. National Securities’ price objective suggests a potential downside of 10.15% from the stock’s previous close.

The analysts wrote, “• HRZN trades at a modest 3% discount to NAV/share despite having non-accruals at cost totaling $16.0 million or 8.4% of the portfolio. NAV/share has continued its stead decline, a decline we expect to continue through 1Q18 before we expect some modest improvement.

• We note that while HRZN’s origination platform has improved in terms of its origination volume, we expect that prepayments will continue to remain heavy and likely remain just ahead of origination volume we forecast. The result of this is that balance sheet leverage will remain far lower than we think many anticipate; which would further hinder NII/share growth at the company even assuming no further credit issues. An additional headwind on NII/share growth will be the resumption of the incentive fee earned in full that we model will occur in 2Q18.

• During 2Q18, we expect the quarterly dividend to be cut again substantially to $0.24/share from $0.30/share currently.

• We are maintaining both our 2017 NII/share estimate of $1.04 and our 2018 NII/share estimate of $1.05. “

Several other equities analysts have also weighed in on the company. Zacks Investment Research lowered Horizon Technology Finance Corporation from a “hold” rating to a “sell” rating in a research note on Wednesday, October 4th. ValuEngine upgraded Horizon Technology Finance Corporation from a “hold” rating to a “buy” rating in a report on Monday, October 2nd. Maxim Group upgraded Horizon Technology Finance Corporation from a “hold” rating to a “buy” rating and set a $12.00 price objective on the stock in a report on Wednesday, August 23rd. Compass Point upgraded Horizon Technology Finance Corporation from a “sell” rating to a “neutral” rating and set a $10.00 price objective on the stock in a report on Monday, August 21st. Finally, Raymond James Financial, Inc. reiterated an “underperform” rating on shares of Horizon Technology Finance Corporation in a report on Thursday, August 3rd. Four investment analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average price target of $10.75.

Horizon Technology Finance Corporation (NASDAQ:HRZN) opened at 11.13 on Tuesday. The stock has a 50 day moving average price of $10.97 and a 200-day moving average price of $11.13. Horizon Technology Finance Corporation has a 1-year low of $9.64 and a 1-year high of $13.70.

Horizon Technology Finance Corporation (NASDAQ:HRZN) last announced its quarterly earnings results on Tuesday, August 1st. The investment management company reported $0.24 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.27 by ($0.03). Horizon Technology Finance Corporation had a negative net margin of 6.72% and a positive return on equity of 10.24%. The business had revenue of $5.88 million during the quarter, compared to analysts’ expectations of $6.71 million. During the same quarter in the prior year, the firm earned $0.39 EPS. Horizon Technology Finance Corporation’s revenue for the quarter was down 35.3% on a year-over-year basis. On average, analysts predict that Horizon Technology Finance Corporation will post $1.09 earnings per share for the current fiscal year.

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Hedge funds have recently added to or reduced their stakes in the company. Wells Fargo & Company MN raised its position in shares of Horizon Technology Finance Corporation by 2.2% during the 1st quarter. Wells Fargo & Company MN now owns 65,616 shares of the investment management company’s stock valued at $730,000 after buying an additional 1,414 shares during the period. WFG Advisors LP raised its position in shares of Horizon Technology Finance Corporation by 30.8% during the 2nd quarter. WFG Advisors LP now owns 24,950 shares of the investment management company’s stock valued at $283,000 after buying an additional 5,878 shares during the period. Investment Centers of America Inc. purchased a new stake in shares of Horizon Technology Finance Corporation during the 2nd quarter valued at approximately $136,000. UBS Group AG raised its position in shares of Horizon Technology Finance Corporation by 18.5% during the 1st 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. Finally, West Family Investments Inc. raised its position in shares of Horizon Technology Finance Corporation by 49.0% during the 2nd quarter. West Family Investments Inc. now owns 158,628 shares of the investment management company’s stock valued at $1,866,000 after buying an additional 52,156 shares during the period. 18.15% of the stock is currently owned by hedge funds and other institutional investors.

About Horizon Technology Finance Corporation

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.

Analyst Recommendations for Horizon Technology Finance Corporation (NASDAQ:HRZN)

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