Hercules Capital (NYSE:HTGC) Reaches New 12-Month Low – Should You Sell?

Hercules Capital, Inc. (NYSE:HTGC) reached a new 52-week low on Friday . The company traded as low as $13.70 and last traded at $13.7640, with a volume of 1575065 shares. The stock had previously closed at $14.06.

Trending Headlines about Hercules Capital

Here are the key news stories impacting Hercules Capital this week:

• Neutral Sentiment: Analyst/market commentary flagged HTGC as an oversold name that could be a rebound candidate, but this is a general view and not company‑specific news. 1 Oversold Stock Set for a Comeback and 2 We Turn Down
• Negative Sentiment: A securities class action was filed alleging investor harm after a short‑seller report accused Hercules of copying deal sourcing from Google Ventures and raised questions about payment‑in‑kind (PIK) features. The lawsuit covers purchases between May 1, 2025 and Feb 27, 2026 and is the primary catalyst for the current legal scrutiny. Hagens Berman: Class Action Filed
• Negative Sentiment: Multiple plaintiff law firms have launched notices and solicitations asking investors to join or lead the litigation (including lead‑plaintiff deadlines), amplifying attention and increasing the likelihood of consolidated, high‑profile suits and associated legal costs. Representative notices from firms include Frank R. Cruz, Bronstein Gewirtz & Grossman, Pomerantz and others. Frank R. Cruz: Shareholder Opportunity Bronstein: Urges Investors to Act Pomerantz: Investor Alert
• Negative Sentiment: Ongoing publicity from multiple filings and reminders (Rosen, Faruqi, Bragar, Robbins, DJS, Schall and others) increases the chance of consolidated litigation, regulatory inquiries, management distraction and potential settlement or defense costs — all of which are typically viewed negatively by investors. Rosen Law Firm Notice

Wall Street Analyst Weigh In

A number of analysts recently commented on HTGC shares. Lucid Cap Mkts upgraded Hercules Capital to a “strong-buy” rating in a research report on Monday, December 15th. Keefe, Bruyette & Woods reduced their target price on shares of Hercules Capital from $20.00 to $19.00 and set an “outperform” rating on the stock in a report on Friday, February 13th. UBS Group lowered their price target on shares of Hercules Capital from $19.50 to $15.00 and set a “neutral” rating for the company in a report on Friday, March 13th. Weiss Ratings downgraded shares of Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, February 24th. Finally, Piper Sandler cut shares of Hercules Capital from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $20.50 to $17.50 in a research note on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $18.71.

Hercules Capital Stock Down 0.9%

The company has a debt-to-equity ratio of 1.03, a current ratio of 1.48 and a quick ratio of 1.48. The stock has a market cap of $2.56 billion, a price-to-earnings ratio of 7.61 and a beta of 0.87. The firm’s 50-day moving average is $16.03 and its 200 day moving average is $17.54.

Hercules Capital (NYSE:HTGC) last announced its quarterly earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.48. The company had revenue of $133.25 million for the quarter, compared to analyst estimates 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 last year, the business earned $0.49 EPS. Sell-side 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 declared a quarterly dividend, which was paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 25th were paid a dividend of $0.07 per share. The ex-dividend date was Wednesday, February 25th. This represents a $0.28 annualized dividend and a yield of 2.0%. Hercules Capital’s dividend payout ratio is currently 87.43%.

Insiders Place Their Bets

In other Hercules Capital news, Director Nikos Theodosopoulos bought 6,165 shares of Hercules Capital stock in a transaction that occurred on Tuesday, February 17th. The shares were acquired at an average price of $15.93 per share, for a total transaction of $98,208.45. Following the acquisition, the director owned 18,923 shares of the company’s stock, valued at $301,443.39. The trade was a 48.32% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Scott Bluestein acquired 30,000 shares of Hercules Capital stock in a transaction on Tuesday, February 24th. The shares were bought at an average price of $15.08 per share, for a total transaction of $452,400.00. Following the purchase, the chief executive officer owned 2,509,379 shares of the company’s stock, valued at $37,841,435.32. This represents a 1.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 117,015 shares of company stock worth $1,749,620. 1.80% of the stock is owned by insiders.

Institutional Trading of Hercules Capital

A number of hedge funds have recently made changes to their positions in HTGC. Van ECK Associates Corp raised its holdings in Hercules Capital by 0.8% in the third quarter. Van ECK Associates Corp now owns 3,647,184 shares of the financial services provider’s stock valued at $68,969,000 after acquiring an additional 28,757 shares in the last quarter. LPL Financial LLC increased its position in shares of Hercules Capital by 1.6% in the 4th quarter. LPL Financial LLC now owns 1,823,405 shares of the financial services provider’s stock worth $34,316,000 after purchasing an additional 29,292 shares during the last quarter. UBS Group AG raised its stake in shares of Hercules Capital by 26.8% in the 4th quarter. UBS Group AG now owns 1,671,860 shares of the financial services provider’s stock valued at $31,464,000 after purchasing an additional 353,092 shares in the last quarter. Legal & General Group Plc lifted its position in shares of Hercules Capital by 17.9% during the fourth quarter. Legal & General Group Plc now owns 1,382,084 shares of the financial services provider’s stock worth $26,004,000 after purchasing an additional 209,854 shares during the last quarter. Finally, Muzinich & Co. Inc. increased its holdings in Hercules Capital by 34.5% in the fourth quarter. Muzinich & Co. Inc. now owns 1,335,787 shares of the financial services provider’s stock valued at $25,140,000 after buying an additional 342,967 shares during the last quarter. Institutional investors and hedge funds own 19.69% of the company’s stock.

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.