Hercules Capital (NYSE:HTGC) Posts Earnings Results, Meets Expectations

Hercules Capital (NYSE:HTGC) posted its earnings results on Thursday. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.48, FiscalAI reports. Hercules Capital had a return on equity of 16.13% and a net margin of 60.05%.The firm had revenue of $133.25 million for the quarter, compared to analysts’ expectations of $141.57 million.

Hercules Capital Stock Down 1.0%

HTGC stock traded down $0.16 on Thursday, reaching $16.63. 2,508,695 shares of the company traded hands, compared to its average volume of 1,695,192. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.65 and a quick ratio of 1.65. The firm has a fifty day simple moving average of $18.45 and a 200-day simple moving average of $18.49. Hercules Capital has a one year low of $15.65 and a one year high of $22.04. The company has a market cap of $3.02 billion, a P/E ratio of 9.67 and a beta of 0.84.

Hercules Capital Cuts Dividend

The business also recently disclosed 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 1.7%. The ex-dividend date of this dividend is Wednesday, February 25th. Hercules Capital’s dividend payout ratio (DPR) is 93.02%.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Weiss Ratings restated a “buy (b-)” rating on shares of Hercules Capital in a report on Wednesday, January 28th. Capital One Financial set a $19.75 price objective on shares of Hercules Capital in a report on Monday, December 15th. Lucid Cap Mkts raised Hercules Capital to a “strong-buy” rating in a research report on Monday, December 15th. Finally, Wall Street Zen lowered Hercules Capital from a “buy” rating to a “hold” rating in a research report on Saturday, December 20th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $20.32.

Institutional Trading of Hercules Capital

Several institutional investors have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. raised its holdings in Hercules Capital by 113.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,884 shares of the financial services provider’s stock worth $35,000 after buying an additional 1,000 shares during the last quarter. WFA of San Diego LLC purchased a new position in Hercules Capital in the 2nd quarter worth about $55,000. Geneos Wealth Management Inc. raised its position in Hercules Capital by 30.7% in the 2nd quarter. Geneos Wealth Management Inc. now owns 6,475 shares of the financial services provider’s stock worth $118,000 after buying an additional 1,520 shares during the last quarter. Triumph Capital Management bought a new position in Hercules Capital during the 3rd quarter valued at about $179,000. Finally, O Shaughnessy Asset Management LLC purchased a new stake in shares of Hercules Capital during the 4th quarter valued at about $195,000. 19.69% of the stock is owned by hedge funds and other institutional investors.

About Hercules Capital

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.