Hercules Capital, Inc. (NYSE:HTGC) Sees Large Growth in Short Interest

Hercules Capital, Inc. (NYSE:HTGC) was the recipient of a large increase in short interest in the month of February. As of February 13th, there was short interest totaling 8,110,923 shares, an increase of 52.4% from the January 29th total of 5,320,833 shares. Currently, 4.5% of the company’s shares are short sold. Based on an average daily trading volume, of 3,702,662 shares, the short-interest ratio is currently 2.2 days. Based on an average daily trading volume, of 3,702,662 shares, the short-interest ratio is currently 2.2 days. Currently, 4.5% of the company’s shares are short sold.

Hercules Capital Trading Down 7.9%

HTGC opened at $14.22 on Friday. The business has a fifty day moving average price of $17.64 and a 200 day moving average price of $18.17. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.48 and a quick ratio of 1.48. Hercules Capital has a 12 month low of $14.10 and a 12 month high of $21.14. The stock has a market capitalization of $2.61 billion, a price-to-earnings ratio of 7.77 and a beta of 0.84.

Hercules Capital (NYSE:HTGC) last announced its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.48. Hercules Capital had a return on equity of 15.97% and a net margin of 63.80%.The business had revenue of $133.25 million during the quarter, compared to analysts’ expectations of $141.57 million. During the same quarter last year, the business posted $0.49 EPS. Sell-side analysts expect that Hercules Capital will post 1.96 earnings per share for the current fiscal year.

Hercules Capital Cuts Dividend

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

Analyst Upgrades and Downgrades

Several research analysts have recently commented on HTGC shares. Capital One Financial set a $19.75 price target on Hercules Capital in a research report on Monday, December 15th. Weiss Ratings cut Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday. Wall Street Zen downgraded Hercules Capital from a “buy” rating to a “hold” rating in a research report on Saturday, December 20th. Piper Sandler cut shares of Hercules Capital from an “overweight” rating to a “neutral” rating and reduced their price target for the stock from $20.50 to $17.50 in a research report on Friday, February 13th. Finally, Wells Fargo & Company dropped their price objective on shares of Hercules Capital from $18.00 to $17.00 and set an “overweight” rating for the company in a report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $19.29.

Key Headlines Impacting Hercules Capital

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

• Positive Sentiment: Multiple insiders (CEO Scott Bluestein, CFO Seth Meyer and several directors) bought stock this week — collectively over ~46,000 shares — signaling management confidence at current levels. See the CEO’s SEC filing for details. CEO SEC Filing
• Neutral Sentiment: Analysts have modestly lowered fair-value estimates and price targets (examples: consolidated fair value trimmed from ~$21.22 to ~$20.31; several firms trimmed targets and ratings), a recalibration rather than a wholesale downgrade of the thesis. Analyst Note
• Negative Sentiment: Unusual bearish options flow — investors bought ~28,062 put contracts (a >1,200% jump vs typical daily put volume) — a strong short-term bearish signal that can amplify downward pressure.
• Negative Sentiment: Hercules cut its quarterly dividend to $0.07 (annualized $0.28), reducing income appeal for yield‑seeking investors and increasing concern about payout sustainability (payout ratio ~87%). See company data and dividend details. MarketBeat HTGC
• Negative Sentiment: Recent analyst downgrades and price‑target cuts (Wells Fargo, Keefe Bruyette & Woods, Piper Sandler and others) have pressured sentiment and likely contributed to selling. Analyst Coverage

Insider Buying and Selling

In related news, Director Gayle A. Crowell bought 6,600 shares of the stock in a transaction on Monday, February 23rd. The stock was bought at an average price of $15.20 per share, with a total value of $100,320.00. Following the completion of the purchase, the director directly owned 87,458 shares in the company, valued at $1,329,361.60. This represents a 8.16% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Seth H. Meyer purchased 7,000 shares of Hercules Capital stock in a transaction dated Friday, February 27th. The stock was bought at an average cost of $14.33 per share, for a total transaction of $100,310.00. Following the completion of the purchase, the chief financial officer directly owned 448,553 shares in the company, valued at approximately $6,427,764.49. This trade represents a 1.59% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 113,965 shares of company stock valued at $1,704,541 over the last three months. Company insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Hercules Capital

Several institutional investors have recently modified their holdings of the company. Assetmark Inc. lifted its holdings in Hercules Capital by 173.4% during the 2nd quarter. Assetmark Inc. now owns 1,386 shares of the financial services provider’s stock worth $25,000 after buying an additional 879 shares during the last quarter. CWM LLC lifted its stake in Hercules Capital by 79.6% during the second quarter. CWM LLC now owns 1,381 shares of the financial services provider’s stock worth $25,000 after purchasing an additional 612 shares during the last quarter. GHP Investment Advisors Inc. acquired a new position in Hercules Capital in the second quarter valued at approximately $27,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in Hercules Capital in the fourth quarter valued at approximately $27,000. Finally, Caitlin John LLC purchased a new position in Hercules Capital in the third quarter valued at approximately $29,000. 19.69% of the stock is owned by hedge funds and other institutional investors.

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.