Royal Bank of Canada Decreases Stake in Hercules Capital, Inc. $HTGC

Royal Bank of Canada trimmed its holdings in Hercules Capital, Inc. (NYSE:HTGC) by 22.9% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 496,406 shares of the financial services provider’s stock after selling 147,364 shares during the period. Royal Bank of Canada’s holdings in Hercules Capital were worth $7,333,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in Hercules Capital during the fourth quarter worth about $27,000. Cornerstone Planning Group LLC acquired a new position in Hercules Capital in the 4th quarter valued at about $29,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Hercules Capital by 113.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,884 shares of the financial services provider’s stock valued at $35,000 after purchasing an additional 1,000 shares during the last quarter. Fifth Third Bancorp purchased a new stake in shares of Hercules Capital in the 1st quarter valued at approximately $35,000. Finally, Summit Securities Group LLC increased its holdings in shares of Hercules Capital by 233.3% during the 4th quarter. Summit Securities Group LLC now owns 2,000 shares of the financial services provider’s stock worth $38,000 after buying an additional 1,400 shares during the last quarter. 19.69% of the stock is owned by institutional investors and hedge funds.

Hercules Capital Stock Down 0.4%

Shares of NYSE HTGC opened at $17.18 on Tuesday. The stock has a market cap of $3.22 billion, a P/E ratio of 8.55 and a beta of 0.79. The business’s fifty day simple moving average is $15.89 and its 200-day simple moving average is $15.74. Hercules Capital, Inc. has a 12-month low of $13.70 and a 12-month high of $19.67. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.03.

Hercules Capital (NYSE:HTGC) last issued its quarterly earnings results on Thursday, July 30th. The financial services provider reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.02. The company had revenue of $134.41 million for the quarter, compared to the consensus estimate of $146.71 million. Hercules Capital had a return on equity of 16.01% and a net margin of 67.68%.Hercules Capital’s revenue was up 8.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.50 EPS. As a group, equities analysts predict that Hercules Capital, Inc. will post 1.95 EPS for the current fiscal year.

Hercules Capital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 18th. Investors of record on Tuesday, August 11th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 9.3%. This is a positive change from Hercules Capital’s previous quarterly dividend of $0.07. The ex-dividend date of this dividend is Tuesday, August 11th. Hercules Capital’s dividend payout ratio is 79.60%.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. UBS Group upped their price objective on Hercules Capital from $15.00 to $15.50 and gave the company a “neutral” rating in a report on Monday, May 18th. Keefe, Bruyette & Woods cut their target price on Hercules Capital from $19.00 to $18.00 and set an “outperform” rating for the company in a research note on Thursday, April 16th. Citizens Jmp reduced their target price on Hercules Capital from $24.00 to $22.00 and set a “market outperform” rating on the stock in a research report on Wednesday, April 22nd. Piper Sandler boosted their target price on Hercules Capital from $16.50 to $17.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Hercules Capital in a research note on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $18.46.

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.