Hercules Capital (NYSE:HTGC) Issues Quarterly Earnings Results

Hercules Capital (NYSE:HTGC) announced its quarterly earnings data on Tuesday. The financial services provider reported $0.48 EPS for the quarter, beating the consensus estimate of $0.47 by $0.01, Zacks reports. The business had revenue of $134.94 million during the quarter, compared to the consensus estimate of $141.39 million. Hercules Capital had a net margin of 63.80% and a return on equity of 15.97%. The company’s revenue was up 18.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.45 earnings per share.

Here are the key takeaways from Hercules Capital’s conference call:

• Hercules reported all-time records for originations and income — $1.81 billion of new commitments in Q1, $141.5 million total investment income and $88.1 million net investment income, with assets under management of about $6.1 billion.
• Liquidity and capital access are strong — the BDC held $454.5 million of available liquidity and the platform had over $1 billion, while management raised $300 million of 2029 notes and ~$52 million via the ATM to fund growth and opportunistic deployments.
• Leverage increased materially to a GAAP level of 115.4% (up from 104.4%), driving higher interest expense (~$30.8 million) and putting the company at the high end of its historical leverage range.
• Credit metrics remain healthy — weighted average internal rating was 2.11, Grade 1–2 credits rose to 70.5%, only one loan on non-accrual (~0.2% of cost), and PIK declined to ~9.1% with most PIK being contractual (not distress) and being collected in cash.

Hercules Capital Stock Performance

HTGC traded down $0.14 on Wednesday, hitting $16.44. The company’s stock had a trading volume of 1,709,889 shares, compared to its average volume of 2,440,060. The company’s 50 day simple moving average is $14.94 and its 200-day simple moving average is $16.91. The firm has a market cap of $3.08 billion, a P/E ratio of 8.97 and a beta of 0.82. Hercules Capital has a 12 month low of $13.70 and a 12 month high of $19.67. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 1.03.

Hercules Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Thursday, May 14th will be issued a $0.07 dividend. The ex-dividend date of this dividend is Thursday, May 14th. This represents a $0.28 annualized dividend and a yield of 1.7%. Hercules Capital’s dividend payout ratio (DPR) is 87.43%.

Hercules Capital News Roundup

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

• Positive Sentiment: Q1 results beat EPS expectations and the firm reported a record $1.81 billion in new commitments, supporting future investment income growth and demonstrating origination strength. Read More.
• Positive Sentiment: Board declared a quarterly distribution (cash return to shareholders) amid the strong quarterly results, which can support income-oriented investor demand. Read More.
• Positive Sentiment: Hercules continues originating new loans with recent credit activity such as a $100M loan facility to Lexicon Pharmaceuticals, showing ongoing deal flow and deployment of capital. Read More.
• Neutral Sentiment: Piper Sandler nudged its price target up to $17 and kept a “neutral” rating — a modest upgrade but not a bullish endorsement. Read More.
• Neutral Sentiment: Some analysts issued mixed/offsetting guidance changes (e.g., a lower target from another shop even as others reaffirm), reflecting divergent views on HTGC’s risk/reward after recent events. Read More.
• Negative Sentiment: Multiple law firms have filed or issued investor alerts about a securities class action covering the period May 1, 2025–Feb 27, 2026 and are soliciting lead plaintiffs — this raises potential litigation cost, distraction, and reputational risk. (Lead‑plaintiff deadline noted.) Read More.
• Negative Sentiment: Separate investor alerts and filings (and coverage stemming from a Hunterbrook report) allege misclassification of software‑related debt exposure and misstated marks — these allegations could prompt further regulatory scrutiny, mark‑to‑market adjustments or reserve changes if validated. Read More.

Insider Buying and Selling

In other news, Director Gayle A. Crowell bought 6,600 shares of the stock in a transaction on Monday, February 23rd. The shares were acquired at an average cost of $15.20 per share, for a total transaction of $100,320.00. Following the purchase, the director directly owned 87,458 shares of the company’s stock, valued at $1,329,361.60. This trade represents a 8.16% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Nikos Theodosopoulos bought 6,165 shares of the stock in a transaction on Tuesday, February 17th. The stock was purchased at an average price of $15.93 per share, for a total transaction of $98,208.45. Following the completion of the purchase, the director directly owned 18,923 shares in the company, valued at approximately $301,443.39. This represents a 48.32% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 117,015 shares of company stock worth $1,749,620 in the last 90 days. 1.80% of the stock is currently owned by company insiders.

Institutional Trading of Hercules Capital

Several institutional investors and hedge funds have recently bought and sold shares of the company. Fox Run Management L.L.C. lifted its stake in Hercules Capital by 2.8% in the 4th quarter. Fox Run Management L.L.C. now owns 24,354 shares of the financial services provider’s stock worth $458,000 after purchasing an additional 657 shares in the last quarter. Centaurus Financial Inc. raised its position in shares of Hercules Capital by 1.8% during the 3rd quarter. Centaurus Financial Inc. now owns 37,819 shares of the financial services provider’s stock valued at $715,000 after buying an additional 675 shares in the last quarter. Mariner LLC raised its position in shares of Hercules Capital by 1.4% during the 4th quarter. Mariner LLC now owns 56,453 shares of the financial services provider’s stock valued at $1,062,000 after buying an additional 764 shares in the last quarter. Integrated Wealth Concepts LLC raised its position in shares of Hercules Capital by 5.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 17,241 shares of the financial services provider’s stock valued at $331,000 after buying an additional 959 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its position in shares of Hercules Capital by 113.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,884 shares of the financial services provider’s stock valued at $35,000 after buying an additional 1,000 shares in the last quarter. 19.69% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on HTGC shares. Citizens Jmp reduced their price objective on shares of Hercules Capital from $24.00 to $22.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 22nd. UBS Group lowered their target price on shares of Hercules Capital from $19.50 to $15.00 and set a “neutral” rating on the stock in a report on Friday, March 13th. Piper Sandler upped their price objective on shares of Hercules Capital from $16.50 to $17.00 and gave the stock a “neutral” rating in a research report on Wednesday. Weiss Ratings downgraded shares of Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, February 24th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Hercules Capital from $19.00 to $18.00 and set an “outperform” rating for the company in a research report on Thursday, April 16th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Hercules Capital presently has a consensus rating of “Moderate Buy” and an average target price of $18.13.

Hercules Capital Company Profile

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.