Hercules Capital (NYSE:HTGC) Sets New 1-Year Low Following Analyst Downgrade

Hercules Capital, Inc. (NYSE:HTGC) reached a new 52-week low during mid-day trading on Friday after Keefe, Bruyette & Woods lowered their price target on the stock from $20.00 to $19.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Hercules Capital traded as low as $15.44 and last traded at $15.65, with a volume of 1717057 shares trading hands. The stock had previously closed at $16.60.

Several other research analysts also recently commented on the stock. Wells Fargo & Company cut their price target on shares of Hercules Capital from $18.00 to $17.00 and set an “overweight” rating for the company in a report on Friday. Lucid Cap Mkts upgraded Hercules Capital to a “strong-buy” rating in a research report on Monday, December 15th. Piper Sandler cut Hercules Capital from an “overweight” rating to a “neutral” rating and reduced their target price for the stock from $20.50 to $17.50 in a research report on Friday. Wall Street Zen cut Hercules Capital from a “buy” rating to a “hold” rating in a report on Saturday, December 20th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Hercules Capital in a research report on Wednesday, January 28th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $19.39.

Trending Headlines about Hercules Capital

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

• Positive Sentiment: Q4 operational strength: originations rose sharply year‑over‑year and management described a strong quarter with record performance and rising investment income — factors that support future yield and portfolio growth. MSN: Q4 originations rise
• Neutral Sentiment: Dividend/debt optionality highlighted: management is weighing a supplemental dividend and the use of new debt against current valuation — a potential shareholder return but with balance‑sheet implications; outcome will be a near‑term catalyst. Yahoo: Dividend and debt considerations
• Negative Sentiment: Analysts cut targets: Keefe, Bruyette & Woods lowered its price target to $19 (still an outperform) and Wells Fargo trimmed its target to $17 while maintaining overweight — downward revisions reduce headline upside and likely pressured the stock. Benzinga: Analyst target cuts
• Negative Sentiment: Earnings nuance — EPS met estimates but revenue missed and expenses rose year‑over‑year; EPS of $0.48 matched consensus but revenue was $133.3M vs. $141.6M expected, and operating costs increased, which dented the headline print. Zacks: Q4 results
• Negative Sentiment: High trading volume and near‑term uncertainty: the stock saw elevated volume on the print and mixed messages on capital allocation (dividend vs. debt), creating selling pressure until the board provides clearer guidance. MarketBeat: Earnings & materials

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Marshall Wace LLP purchased a new position in shares of Hercules Capital during the third quarter valued at about $11,199,000. Qube Research & Technologies Ltd boosted its position in Hercules Capital by 425.6% during the 2nd quarter. Qube Research & Technologies Ltd now owns 580,414 shares of the financial services provider’s stock valued at $10,610,000 after acquiring an additional 469,989 shares in the last quarter. UBS Group AG grew its holdings in shares of Hercules Capital by 26.8% during the 4th quarter. UBS Group AG now owns 1,671,860 shares of the financial services provider’s stock worth $31,464,000 after acquiring an additional 353,092 shares during the period. Muzinich & Co. Inc. raised its position in shares of Hercules Capital by 34.5% in the 4th quarter. Muzinich & Co. Inc. now owns 1,335,787 shares of the financial services provider’s stock worth $25,140,000 after acquiring an additional 342,967 shares in the last quarter. Finally, HRT Financial LP lifted its stake in shares of Hercules Capital by 100.9% in the 2nd quarter. HRT Financial LP now owns 558,010 shares of the financial services provider’s stock valued at $10,200,000 after purchasing an additional 280,198 shares during the period. 19.69% of the stock is currently owned by institutional investors.

Hercules Capital Stock Down 6.0%

The company has a market capitalization of $2.84 billion, a P/E ratio of 8.53 and a beta of 0.84. The company has a 50-day moving average of $18.33 and a two-hundred day moving average of $18.44. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 0.98.

Hercules Capital (NYSE:HTGC) last announced its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.48 EPS for the quarter, meeting the consensus estimate of $0.48. Hercules Capital had a return on equity of 16.17% and a net margin of 63.80%.The business had revenue of $133.25 million during the quarter, compared to analyst estimates of $141.57 million. During the same quarter last year, the firm posted $0.49 earnings per share. On average, research analysts predict that Hercules Capital, Inc. will post 1.96 EPS for the current year.

Hercules Capital Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Investors of record on Wednesday, February 25th will be given a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Wednesday, February 25th. Hercules Capital’s dividend payout ratio (DPR) is 87.43%.

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.