Hercules Capital, Inc. (NYSE:HTGC) Stock Has Average Price Target of $18.89 According to Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Hercules Capital, with five buy ratings, one strong buy, and two holds. The average 12-month price target is $18.89.
• Hercules Capital reported quarterly EPS of $0.50, exceeding estimates of $0.48, while revenue rose 8.4% year over year to $134.41 million but fell short of expectations.
• The company increased its quarterly dividend to $0.40, implying an annualized yield of approximately 10.0%; institutional investors own 19.69% of its shares.

Shares of Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) have received a consensus rating of "Moderate Buy" from the eight ratings firms that are covering the company, MarketBeat reports. Two investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $18.89.

HTGC has been the subject of several recent research reports. LADENBURG THALM/SH SH lowered their target price on Hercules Capital from $21.00 to $20.00 and set a "buy" rating for the company in a report on Friday, July 31st. Weiss Ratings downgraded Hercules Capital from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, October 13th. Finally, UBS Group raised Hercules Capital from a "neutral" rating to a "buy" rating and raised their price target for the stock from $15.50 to $18.50 in a report on Tuesday, September 1st.

Hercules Capital Price Performance

Shares of NYSE:HTGC opened at $16.08 on Tuesday. The company has a market cap of $3.01 billion, a PE ratio of 8.00 and a beta of 0.82. Hercules Capital has a fifty-two week low of $13.70 and a fifty-two week high of $19.13. The firm has a 50-day simple moving average of $17.07 and a 200 day simple moving average of $16.21. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 1.03.

Hercules Capital (NYSE:HTGC - Get Free Report) last issued its earnings results on Thursday, July 30th. The financial services provider reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.48 by $0.02. Hercules Capital had a net margin of 67.68% and a return on equity of 16.01%. The firm had revenue of $134.41 million for the quarter, compared to analysts' expectations of $146.71 million. During the same quarter last year, the company posted $0.50 earnings per share. Hercules Capital's revenue was up 8.4% on a year-over-year basis. On average, sell-side analysts anticipate that Hercules Capital will post 1.95 EPS for the current year.

Hercules Capital Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 18th. Shareholders of record on Tuesday, August 11th were paid a $0.40 dividend. The ex-dividend date was Tuesday, August 11th. This is a positive change from Hercules Capital's previous quarterly dividend of $0.07. This represents a $1.60 dividend on an annualized basis and a yield of 10.0%. Hercules Capital's dividend payout ratio (DPR) is 79.60%.

Hedge Funds Weigh In On Hercules Capital

Several hedge funds and other institutional investors have recently modified their holdings of HTGC. Legal & General Group Plc acquired a new position in shares of Hercules Capital during the second quarter valued at $26,523,000. BlackRock Inc. bought a new stake in shares of Hercules Capital during the second quarter valued at about $14,573,000. Advisors Capital Management LLC bought a new stake in shares of Hercules Capital during the second quarter valued at about $14,501,000. Van ECK Associates Corp lifted its holdings in Hercules Capital by 22.6% in the second quarter. Van ECK Associates Corp now owns 3,877,634 shares of the financial services provider's stock worth $61,150,000 after purchasing an additional 713,653 shares during the period. Finally, Sound Income Strategies LLC lifted its holdings in Hercules Capital by 25.1% in the first quarter. Sound Income Strategies LLC now owns 3,382,058 shares of the financial services provider's stock worth $49,243,000 after purchasing an additional 678,783 shares during the period. Institutional investors and hedge funds own 19.69% of the company's stock.

About Hercules Capital

Hercules Capital, Inc is a specialty finance company and business development company that provides financing to venture capital- and private equity-backed companies. Founded in 2003, the company was formerly known as Hercules Technology Growth Capital and focuses on supporting businesses in technology, life sciences, and other innovation-oriented industries.

Hercules Capital offers secured and unsecured venture debt, growth capital, equipment financing, working capital facilities, acquisition financing, and recapitalization solutions.

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