Hercules Capital, Inc. (NYSE:HTGC) Stock Has Consensus Target Price of $18.89

Key Points

• Analysts rate Hercules Capital a “Moderate Buy”: Five of eight analysts recommend buying and one recommends a strong buy; the average 12-month price target is $18.89.
• The company reported quarterly earnings of $0.47 per share, matching estimates, while revenue of $135.69 million came in below the $144.11 million consensus.
• Hercules Capital cut its quarterly dividend from $0.40 to $0.07 per share, equivalent to an annualized yield of 1.8% at the reported share price.

Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the eight analysts that are presently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $18.89.

HTGC has been the topic of several research reports. UBS Group upgraded Hercules Capital from a "neutral" rating to a "buy" rating and lifted their price target for the company from $15.50 to $18.50 in a research report on Tuesday, September 1st. Weiss Ratings downgraded Hercules Capital from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday. Finally, Ladenburg Thalmann & Co. Inc. lowered their price objective on Hercules Capital from $21.00 to $20.00 and set a "buy" rating for the company in a research report on Friday, July 31st.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of HTGC. Burk Holdings LLC bought a new stake in Hercules Capital during the second quarter worth about $28,000. Archer Investment Corp bought a new position in shares of Hercules Capital during the second quarter valued at approximately $32,000. Fifth Third Bancorp bought a new position in shares of Hercules Capital during the first quarter valued at approximately $35,000. Fortitude Family Office LLC bought a new position in shares of Hercules Capital during the third quarter valued at approximately $40,000. Finally, Caitlin John LLC purchased a new position in shares of Hercules Capital during the second quarter valued at approximately $42,000. 19.69% of the stock is currently owned by institutional investors.

Hercules Capital Stock Performance

Shares of HTGC opened at $15.88 on Friday. The company has a 50-day simple moving average of $16.75 and a two-hundred day simple moving average of $16.06. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.41 and a quick ratio of 1.41. The firm has a market capitalization of $3.01 billion, a PE ratio of 8.54 and a beta of 0.82. Hercules Capital has a one year low of $13.70 and a one year high of $19.13.

Hercules Capital (NYSE:HTGC - Get Free Report) last posted its earnings results on Thursday, October 29th. The financial services provider reported $0.47 earnings per share for the quarter, hitting analysts' consensus estimates of $0.47. Hercules Capital had a return on equity of 15.72% and a net margin of 62.84%. The firm had revenue of $135.69 million for the quarter, compared to the consensus estimate of $144.11 million. During the same quarter in the prior year, the business earned $0.49 EPS. On average, analysts anticipate that Hercules Capital will post 1.94 EPS for the current fiscal year.

Hercules Capital Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 17th. Stockholders of record on Tuesday, November 10th will be given a $0.07 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.8%. This is a drop from Hercules Capital's previous quarterly dividend of $0.40. Hercules Capital's payout ratio is currently 86.02%.

Hercules Capital Company Profile

Hercules Capital, Inc. is a specialty finance company and business development company that provides financing to venture capital-backed businesses. Its lending focuses primarily on companies in the technology, life sciences and sustainable and renewable technology sectors. The company offers venture debt and growth capital through products such as senior secured loans, equipment financing and working capital facilities. Its financing is designed to support businesses at different stages, including product development, expansion and other growth initiatives.

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