Hercules Capital (NYSE:HTGC) Reaches New 1-Year Low – Here’s What Happened

Hercules Capital, Inc. (NYSE:HTGC) shares reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $14.17 and last traded at $14.4610, with a volume of 3106572 shares changing hands. The stock had previously closed at $15.43.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. Wells Fargo & Company reduced their price target on shares of Hercules Capital from $18.00 to $17.00 and set an “overweight” rating for the company in a research report on Friday, February 13th. Weiss Ratings cut Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday. Keefe, Bruyette & Woods lowered their price target on Hercules Capital from $20.00 to $19.00 and set an “outperform” rating on the stock in a research note on Friday, February 13th. Wall Street Zen cut Hercules Capital from a “buy” rating to a “hold” rating in a research report on Saturday, December 20th. Finally, Lucid Cap Mkts raised Hercules Capital to a “strong-buy” rating in a research note on Monday, December 15th. One research 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 MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $19.29.

Hercules Capital Trading Down 7.0%

The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 1.03. The company’s 50-day moving average is $17.73 and its 200-day moving average is $18.21. The stock has a market capitalization of $2.64 billion, a price-to-earnings ratio of 7.84 and a beta of 0.84.

Hercules Capital (NYSE:HTGC) last announced its quarterly earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.48. The business had revenue of $133.25 million during the quarter, compared to the consensus estimate 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 firm earned $0.49 EPS. Research analysts anticipate that Hercules Capital, Inc. will post 1.96 earnings per share for the current fiscal year.

Hercules Capital Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 25th will be issued a dividend of $0.07 per share. The ex-dividend date is Wednesday, February 25th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 2.0%. Hercules Capital’s dividend payout ratio is currently 87.43%.

Insider Transactions at Hercules Capital

In related news, Director Robert P. Badavas acquired 5,000 shares of the stock in a transaction that occurred on Tuesday, February 24th. The stock was purchased at an average price of $15.01 per share, with a total value of $75,050.00. Following the transaction, the director owned 117,073 shares of the company’s stock, valued at approximately $1,757,265.73. This trade represents a 4.46% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Wade Loo bought 3,300 shares of the company’s stock in a transaction that occurred on Wednesday, February 25th. The stock was bought at an average price of $14.98 per share, with a total value of $49,434.00. Following the acquisition, the director directly owned 32,767 shares in the company, valued at $490,849.66. The trade was a 11.20% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 71,065 shares of company stock worth $1,093,012 in the last 90 days. Insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Hercules Capital

Several institutional investors and hedge funds have recently modified their holdings of HTGC. Assetmark Inc. grew its position in Hercules Capital by 173.4% in the 2nd quarter. Assetmark Inc. now owns 1,386 shares of the financial services provider’s stock valued at $25,000 after acquiring an additional 879 shares in the last quarter. CWM LLC boosted its stake in shares of Hercules Capital by 79.6% in the second quarter. CWM LLC now owns 1,381 shares of the financial services provider’s stock valued at $25,000 after purchasing an additional 612 shares during the period. GHP Investment Advisors Inc. acquired a new position in shares of Hercules Capital in the second quarter valued at approximately $27,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in Hercules Capital during the 4th quarter worth approximately $27,000. Finally, Caitlin John LLC acquired a new stake in Hercules Capital during the 3rd quarter worth approximately $29,000. Hedge funds and other institutional investors 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.