Hercules Capital, Inc. (NYSE:HTGC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “Hercules Capital’s shares have significantly underperformed the industry, in the last six months. The company’s second-quarter 2017 earnings were in line with the Zacks Consensus Estimate as rise in total investment income was offset by higher costs. Increase in expenses, largely due to the company’s efforts to improve originations, is expected to hurt bottom-line growth in the near term. While it is likely to witness growing demand for customized financing, based on the market optimism for public equities and an improving economic environment, high concentration risk makes us apprehensive.”

Several other analysts have also commented on the stock. JMP Securities restated a “mkt outperform” rating and set a $14.50 price target on shares of Hercules Capital in a research report on Monday. Royal Bank Of Canada reiterated a “buy” rating and issued a $16.00 target price on shares of Hercules Capital in a research report on Sunday. Raymond James Financial, Inc. reiterated an “underperform” rating on shares of Hercules Capital in a research report on Friday. BidaskClub lowered shares of Hercules Capital from a “buy” rating to a “hold” rating in a research report on Sunday, July 30th. Finally, Jefferies Group LLC reiterated a “buy” rating and issued a $16.00 target price on shares of Hercules Capital in a research report on Friday, July 14th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and six have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $15.21.

Hercules Capital (NYSE:HTGC) traded up 3.21% during midday trading on Monday, reaching $13.19. 425,593 shares of the company’s stock were exchanged. The stock has a market capitalization of $1.09 billion, a price-to-earnings ratio of 21.34 and a beta of 0.82. The stock’s 50-day moving average is $13.30 and its 200-day moving average is $14.13. Hercules Capital has a 12-month low of $12.29 and a 12-month high of $15.68.

Hercules Capital (NYSE:HTGC) last released its quarterly earnings results on Thursday, August 3rd. The financial services provider reported $0.31 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.31. The company had revenue of $48.45 million for the quarter, compared to analyst estimates of $48.25 million. Hercules Capital had a net margin of 38.69% and a return on equity of 12.93%. The firm’s revenue was up 11.3% on a year-over-year basis. During the same quarter last year, the business earned $0.32 earnings per share. On average, equities analysts forecast that Hercules Capital will post $1.21 earnings per share for the current year.

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Hedge funds have recently made changes to their positions in the stock. Bank of Montreal Can increased its position in Hercules Capital by 846.3% in the first quarter. Bank of Montreal Can now owns 68,208 shares of the financial services provider’s stock valued at $1,032,000 after buying an additional 61,000 shares in the last quarter. DnB Asset Management AS increased its position in Hercules Capital by 23.7% in the first quarter. DnB Asset Management AS now owns 61,639 shares of the financial services provider’s stock valued at $933,000 after buying an additional 11,800 shares in the last quarter. Naples Global Advisors LLC increased its position in Hercules Capital by 0.5% in the first quarter. Naples Global Advisors LLC now owns 69,056 shares of the financial services provider’s stock valued at $1,045,000 after buying an additional 325 shares in the last quarter. Independent Portfolio Consultants Inc. acquired a new position in Hercules Capital during the first quarter valued at $223,000. Finally, Granite Investment Partners LLC acquired a new position in Hercules Capital during the first quarter valued at $9,428,000. Institutional investors and hedge funds own 44.25% of the company’s stock.

Hercules Capital Company Profile

Hercules Capital, Inc is a specialty finance company. The Company is an internally managed, non-diversified, closed-end investment company. The Company focuses on providing senior secured venture growth loans to venture capital-backed companies in a range of technology, life sciences, and sustainable and renewable technology industries.

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Analyst Recommendations for Hercules Capital (NYSE:HTGC)

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