Horizon Technology Finance Corporation (NASDAQ:HRZN)‘s stock had its “neutral” rating reissued by research analysts at National Securities in a note issued to investors on Monday. They presently have a $10.00 target price on the investment management company’s stock, down from their prior target price of $11.00. National Securities’ target price points to a potential downside of 7.32% from the company’s current price.

The analysts wrote, “• HRZN experienced a 2.0% sequential Q/Q decline in NAV/share to $11.87 from $12.11, generating an annualized economic return of 2.1% for the quarter. In 2Q17, Interleukin Genetics was placed on non-accrual status with a cost of $4.0 million. HRZN began to work with the sponsors at Interleukin as they pursued a clinical services agreement but when it became apparent they wouldn’t get this they instead began to work on liquidating the company. What is concerning, in our opinion, is the fact that Interleukin was marked at 98% of cost as of 3/31/17.

• NII/share was light at $0.24/share, contrasted with a $0.30/share quarterly dividend and our estimate of $0.29/share. We had previously estimated a reduction in the dividend to $0.27/share in 3Q18 but are now anticipating a much more severe cut to $0.22/share in 1Q18. The light NII/share during the quarter came about even as the incentive fee was not fully earned and the company had the benefit of $327,000 in prepayment fees during the quarter. We cannot fathom how, with a fully earned incentive fee and lower prepayments (and thus lower fee income), HRZN will earn the $0.30/share quarterly dividend going forward.

• We are revising our 2017 NII/share estimate to $0.98 from $1.17 and our 2018 NII/share estimate to $0.96 from $1.16.”

Other equities research analysts have also issued research reports about the company. UBS AG lowered Horizon Technology Finance Corporation from a “market perform” rating to an “underperform” rating in a research report on Thursday. Keefe, Bruyette & Woods restated a “hold” rating and set a $11.00 price objective on shares of Horizon Technology Finance Corporation in a research report on Tuesday, July 25th. Compass Point restated a “sell” rating and set a $10.00 price objective on shares of Horizon Technology Finance Corporation in a research report on Thursday, July 6th. Raymond James Financial, Inc. restated an “underperform” rating on shares of Horizon Technology Finance Corporation in a research report on Thursday. Finally, Zacks Investment Research lowered Horizon Technology Finance Corporation from a “hold” rating to a “sell” rating in a research report on Thursday. Four analysts have rated the stock with a sell rating and four have given a hold rating to the company. Horizon Technology Finance Corporation currently has a consensus rating of “Hold” and a consensus price target of $11.00.

Horizon Technology Finance Corporation (NASDAQ:HRZN) opened at 10.79 on Monday. The stock’s 50 day moving average price is $11.39 and its 200 day moving average price is $11.25. Horizon Technology Finance Corporation has a 52 week low of $9.64 and a 52 week high of $13.93.

Horizon Technology Finance Corporation (NASDAQ:HRZN) last issued its quarterly earnings data on Tuesday, August 1st. The investment management company reported $0.24 earnings per share for the quarter, missing analysts’ consensus estimates of $0.27 by $0.03. The firm had revenue of $5.88 million for the quarter, compared to the consensus estimate of $6.71 million. Horizon Technology Finance Corporation had a positive return on equity of 10.24% and a negative net margin of 6.72%. The company’s revenue was down 35.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.39 EPS. Equities research analysts predict that Horizon Technology Finance Corporation will post $1.07 earnings per share for the current fiscal year.

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Large investors have recently added to or reduced their stakes in the stock. Founders Financial Securities LLC raised its stake in Horizon Technology Finance Corporation by 25.8% in the first quarter. Founders Financial Securities LLC now owns 12,646 shares of the investment management company’s stock worth $141,000 after buying an additional 2,591 shares during the period. Nwam LLC bought a new stake in Horizon Technology Finance Corporation during the first quarter worth approximately $174,000. Infrastructure Capital Advisors LLC bought a new stake in Horizon Technology Finance Corporation during the first quarter worth approximately $184,000. Wells Fargo & Company MN raised its stake in Horizon Technology Finance Corporation by 2.2% in the first quarter. Wells Fargo & Company MN now owns 65,616 shares of the investment management company’s stock worth $730,000 after buying an additional 1,414 shares during the period. Finally, West Family Investments Inc. raised its stake in Horizon Technology Finance Corporation by 49.0% in the second quarter. West Family Investments Inc. now owns 158,628 shares of the investment management company’s stock worth $1,866,000 after buying an additional 52,156 shares during the period. Hedge funds and other institutional investors own 17.39% of the company’s stock.

About Horizon Technology Finance Corporation

Horizon Technology Finance Corporation is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to maximize investment portfolio’s total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments.

Analyst Recommendations for Horizon Technology Finance Corporation (NASDAQ:HRZN)

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