Horizon Technology Finance Corporation (NASDAQ:HRZN) Shareholders to Get $0.06 Monthly Dividend

Key Points

• Horizon Technology Finance declared a $0.06-per-share monthly dividend, equivalent to $0.72 annually and an indicated yield of 18.1%. Shareholders of record January 19 are scheduled to be paid February 17.
• The dividend is currently covered by earnings, with a 62.6% payout ratio, but forecast earnings of $0.71 per share fall below the $0.72 annual dividend, implying a potential future payout ratio of 101.4%.
• Analysts have a consensus “Hold” rating and an average price target of $5.00. The company matched quarterly EPS expectations at $0.18, while revenue of $24.06 million came in below the $25.12 million consensus estimate.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) declared a monthly dividend on Thursday, November 5th. Investors of record on Tuesday, January 19th will be given a dividend of $0.06 per share by the investment management company on Wednesday, February 17th. This represents a $0.72 annualized dividend and a yield of 18.1%. The ex-dividend date is Tuesday, January 19th.

Horizon Technology Finance has a dividend payout ratio of 62.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect Horizon Technology Finance to earn $0.71 per share next year, which means the company may not be able to cover its $0.72 annual dividend with an expected future payout ratio of 101.4%.

Horizon Technology Finance Price Performance

HRZN traded up $0.02 during trading on Friday, reaching $3.98. 347,259 shares of the stock were exchanged, compared to its average volume of 814,893. The company has a market capitalization of $267.06 million, a price-to-earnings ratio of 10.99 and a beta of 1.00. Horizon Technology Finance has a 1 year low of $3.70 and a 1 year high of $6.85. The business's 50 day moving average price is $4.47 and its two-hundred day moving average price is $4.75.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The investment management company reported $0.18 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.18. Horizon Technology Finance had a return on equity of 11.15% and a net margin of 5.27%. The business had revenue of $24.06 million during the quarter, compared to the consensus estimate of $25.12 million. On average, analysts anticipate that Horizon Technology Finance will post 0.63 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on HRZN shares. Weiss Ratings lowered shares of Horizon Technology Finance from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, August 19th. Compass Point started coverage on Horizon Technology Finance in a report on Thursday, August 27th. They set a "buy" rating and a $5.50 price objective on the stock. UBS Group increased their price objective on Horizon Technology Finance from $4.25 to $4.50 and gave the stock a "neutral" rating in a report on Tuesday, September 1st. Keefe, Bruyette & Woods reduced their price objective on shares of Horizon Technology Finance from $5.00 to $4.50 and set a "market perform" rating for the company in a research note on Friday, August 21st. Finally, Oppenheimer dropped their price target on Horizon Technology Finance from $6.00 to $5.00 and set a "market perform" rating on the stock in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $5.00.

About Horizon Technology Finance

Horizon Technology Finance Corporation NASDAQ: HRZN is a specialty finance company that has elected to be regulated as a business development company. It provides secured venture loans to development-stage companies backed by venture capital or private equity investors.

The company primarily finances businesses in the technology, life sciences, healthcare information and sustainability sectors. Its lending solutions are designed to support needs such as product development, commercialization, acquisitions, working capital and other corporate purposes.

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