Hercules Capital, Inc. (NYSE:HTGC) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Hercules Capital received a “Moderate Buy” consensus rating from eight analysts, with five buys, one strong buy and two holds; the average 12-month price target is $18.89.
• Institutional ownership stands at 19.69%, with major investors including Van ECK Associates, Sound Income Strategies, Legal & General and BlackRock increasing or initiating positions.
• The company reported quarterly EPS of $0.50, exceeding estimates, while revenue rose 8.4% year over year. Hercules also increased its quarterly dividend to $0.40, implying a 9.5% annualized yield.

Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eight research firms that are covering the company, Marketbeat reports. Two investment analysts have rated the stock with a hold recommendation, five have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $18.89.

A number of analysts have recently weighed in on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Hercules Capital in a research report on Monday, September 14th. UBS Group raised shares of Hercules Capital from a "neutral" rating to a "buy" rating and upped their price target for the company from $15.50 to $18.50 in a report on Tuesday, September 1st. Finally, LADENBURG THALM/SH SH reduced their price objective on shares of Hercules Capital from $21.00 to $20.00 and set a "buy" rating on the stock in a research note on Friday, July 31st.

Hedge Funds Weigh In On Hercules Capital

A number of hedge funds have recently bought and sold shares of HTGC. Van ECK Associates Corp raised its stake in Hercules Capital by 22.6% during the second quarter. Van ECK Associates Corp now owns 3,877,634 shares of the financial services provider's stock valued at $61,150,000 after buying an additional 713,653 shares in the last quarter. Sound Income Strategies LLC grew its position in shares of Hercules Capital by 25.1% in the 1st quarter. Sound Income Strategies LLC now owns 3,382,058 shares of the financial services provider's stock worth $49,243,000 after acquiring an additional 678,783 shares in the last quarter. Legal & General Group Plc acquired a new position in shares of Hercules Capital in the 2nd quarter worth approximately $26,523,000. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of Hercules Capital by 0.6% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,025,337 shares of the financial services provider's stock valued at $15,144,000 after acquiring an additional 6,578 shares during the last quarter. Finally, BlackRock Inc. bought a new stake in shares of Hercules Capital in the 2nd quarter valued at approximately $14,573,000. 19.69% of the stock is currently owned by institutional investors and hedge funds.

Hercules Capital Trading Down 1.1%

NYSE:HTGC opened at $16.78 on Friday. The stock has a market cap of $3.14 billion, a price-to-earnings ratio of 8.35 and a beta of 0.81. Hercules Capital has a one year low of $13.70 and a one year high of $19.25. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.37 and a current ratio of 1.37. The business's 50-day simple moving average is $16.99 and its 200 day simple moving average is $15.93.

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

Hercules Capital Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 18th. Stockholders of record on Tuesday, August 11th were paid a $0.40 dividend. This is a boost from Hercules Capital's previous quarterly dividend of $0.07. The ex-dividend date was Tuesday, August 11th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 9.5%. Hercules Capital's dividend payout ratio (DPR) is currently 79.60%.

Hercules Capital Company Profile

Hercules Capital, Inc NYSE: HTGC is a specialty finance company and business development company that provides financing to innovative, growth-oriented companies. Its primary focus is venture lending for businesses in the technology, life sciences, and sustainable and renewable technology sectors, including companies supported by venture capital and private equity investors.

The company offers secured term loans, equipment financing, working capital and bridge loans, and other customized debt solutions.

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