Hercules Capital, Inc. (NYSE:HTGC) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Hercules Capital, Inc. (NYSE:HTGC) have been given a consensus rating of “Moderate Buy” by the nine ratings firms that are presently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a hold recommendation, six have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokers that have covered the stock in the last year is $20.3214.

HTGC has been the topic of several research analyst reports. Piper Sandler decreased their price target on shares of Hercules Capital from $21.00 to $20.50 and set an “overweight” rating on the stock in a report on Thursday, October 9th. UBS Group reduced their target price on Hercules Capital from $19.00 to $18.50 and set a “neutral” rating for the company in a research report on Tuesday, October 14th. Wall Street Zen lowered Hercules Capital from a “buy” rating to a “hold” rating in a research note on Saturday, December 20th. Lucid Cap Mkts upgraded Hercules Capital to a “strong-buy” rating in a research report on Monday, December 15th. Finally, Capital One Financial set a $19.75 price objective on Hercules Capital in a report on Monday, December 15th.

Hercules Capital Price Performance

HTGC stock opened at $18.91 on Friday. The firm has a 50 day moving average of $18.38 and a 200-day moving average of $18.62. The firm has a market capitalization of $3.44 billion, a P/E ratio of 10.99 and a beta of 0.84. Hercules Capital has a 12 month low of $15.65 and a 12 month high of $22.04. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 0.98.

Hercules Capital (NYSE:HTGC) last posted its earnings results on Thursday, October 30th. The financial services provider reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.48 by $0.01. Hercules Capital had a net margin of 60.05% and a return on equity of 16.13%. The business had revenue of $138.09 million for the quarter, compared to analyst estimates of $136.95 million. During the same quarter in the prior year, the firm posted $0.51 EPS. As a group, sell-side analysts predict that Hercules Capital will post 1.96 earnings per share for the current fiscal year.

Hercules Capital Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, November 19th. Shareholders of record on Wednesday, November 12th were paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 8.5%. The ex-dividend date of this dividend was Wednesday, November 12th. Hercules Capital’s payout ratio is currently 93.02%.

Insider Activity at Hercules Capital

In related news, Director Gayle A. Crowell acquired 6,000 shares of the stock in a transaction dated Monday, November 3rd. The shares were purchased at an average price of $17.77 per share, for a total transaction of $106,620.00. Following the transaction, the director owned 78,727 shares in the company, valued at $1,398,978.79. This represents a 8.25% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. 1.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Dakota Wealth Management lifted its stake in Hercules Capital by 1.6% during the second quarter. Dakota Wealth Management now owns 37,985 shares of the financial services provider’s stock worth $694,000 after purchasing an additional 600 shares during the last quarter. CWM LLC raised its holdings in shares of Hercules Capital by 79.6% during the 2nd quarter. CWM LLC now owns 1,381 shares of the financial services provider’s stock valued at $25,000 after buying an additional 612 shares in the last quarter. Centaurus Financial Inc. lifted its position in Hercules Capital by 1.8% in the 3rd quarter. Centaurus Financial Inc. now owns 37,819 shares of the financial services provider’s stock worth $715,000 after buying an additional 675 shares during the last quarter. Allworth Financial LP boosted its stake in Hercules Capital by 11.4% in the third quarter. Allworth Financial LP now owns 6,652 shares of the financial services provider’s stock worth $126,000 after buying an additional 680 shares in the last quarter. Finally, Rockefeller Capital Management L.P. grew its position in Hercules Capital by 0.5% during the second quarter. Rockefeller Capital Management L.P. now owns 143,346 shares of the financial services provider’s stock valued at $2,620,000 after acquiring an additional 697 shares during the last quarter. 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.