National Securities cut shares of Horizon Technology Finance Corporation (NASDAQ:HRZN) from a neutral rating to a sell rating in a research report sent to investors on Tuesday. The firm currently has $10.00 price target on the investment management company’s stock.

“• HRZN trades at a modest 3% discount to NAV/share despite having non-accruals at cost totaling $16.0 million or 8.4% of the portfolio. NAV/share has continued its stead decline, a decline we expect to continue through 1Q18 before we expect some modest improvement.

• We note that while HRZN’s origination platform has improved in terms of its origination volume, we expect that prepayments will continue to remain heavy and likely remain just ahead of origination volume we forecast. The result of this is that balance sheet leverage will remain far lower than we think many anticipate; which would further hinder NII/share growth at the company even assuming no further credit issues. An additional headwind on NII/share growth will be the resumption of the incentive fee earned in full that we model will occur in 2Q18.

• During 2Q18, we expect the quarterly dividend to be cut again substantially to $0.24/share from $0.30/share currently.

• We are maintaining both our 2017 NII/share estimate of $1.04 and our 2018 NII/share estimate of $1.05. ,” the firm’s analyst commented.

HRZN has been the topic of a number of other research reports. Zacks Investment Research cut Horizon Technology Finance Corporation from a hold rating to a sell rating in a research note on Wednesday, October 4th. ValuEngine cut Horizon Technology Finance Corporation from a buy rating to a hold rating in a research note on Friday, September 1st. Maxim Group reissued a hold rating on shares of Horizon Technology Finance Corporation in a research note on Wednesday, August 2nd. Compass Point raised Horizon Technology Finance Corporation from a sell rating to a neutral rating and set a $10.00 price target on the stock in a research note on Monday, August 21st. Finally, Raymond James Financial, Inc. reissued an underperform rating on shares of Horizon Technology Finance Corporation in a research note on Thursday, August 3rd. Four investment analysts have rated the stock with a sell rating, three have assigned a hold rating and two have issued a buy rating to the company’s stock. Horizon Technology Finance Corporation presently has an average rating of Hold and an average price target of $10.75.

Horizon Technology Finance Corporation (HRZN) traded down 1.63% on Tuesday, reaching $10.83. 64,677 shares of the company’s stock were exchanged. The firm’s 50 day moving average is $11.00 and its 200 day moving average is $11.12. Horizon Technology Finance Corporation has a 1-year low of $9.64 and a 1-year high of $13.70.

Horizon Technology Finance Corporation (NASDAQ:HRZN) last issued its quarterly earnings results on Tuesday, August 1st. The investment management company reported $0.24 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.27 by ($0.03). The company had revenue of $5.88 million during the quarter, compared to analysts’ expectations 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 for the quarter was down 35.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.39 EPS. On average, equities analysts anticipate that Horizon Technology Finance Corporation will post $1.09 EPS for the current year.

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The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, November 15th. Shareholders of record on Thursday, October 19th will be given a dividend of $0.10 per share. The ex-dividend date is Wednesday, October 18th. This represents a $1.20 dividend on an annualized basis and a yield of 11.08%. Horizon Technology Finance Corporation’s payout ratio is presently -749.95%.

A number of hedge funds and other institutional investors have recently made changes to their positions in HRZN. Investment Centers of America Inc. acquired a new stake in Horizon Technology Finance Corporation during the 2nd quarter worth about $136,000. Royal Bank of Canada boosted its position in Horizon Technology Finance Corporation by 25.8% during the 2nd quarter. Royal Bank of Canada now owns 20,752 shares of the investment management company’s stock worth $235,000 after acquiring an additional 4,252 shares during the period. WFG Advisors LP boosted its position in Horizon Technology Finance Corporation by 30.8% during the 2nd quarter. WFG Advisors LP now owns 24,950 shares of the investment management company’s stock worth $283,000 after acquiring an additional 5,878 shares during the period. Wells Fargo & Company MN boosted its position in Horizon Technology Finance Corporation by 2.2% during the 1st quarter. Wells Fargo & Company MN now owns 65,616 shares of the investment management company’s stock worth $730,000 after acquiring an additional 1,414 shares during the period. Finally, West Family Investments Inc. boosted its position in Horizon Technology Finance Corporation by 49.0% during the 2nd quarter. West Family Investments Inc. now owns 158,628 shares of the investment management company’s stock worth $1,866,000 after acquiring an additional 52,156 shares during the period. Hedge funds and other institutional investors own 18.15% 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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