Bank of New York Mellon Corp Takes $2.07 Million Position in Hercules Capital, Inc. $HTGC

Key Points

• Bank of New York Mellon initiated a $2.07 million position in Hercules Capital, purchasing 131,115 shares, equivalent to 0.07% of the company. Institutional investors collectively own 19.69% of HTGC.
• Hercules Capital reported quarterly EPS of $0.50, beating estimates by $0.02, while revenue reached $134.41 million, up 8.4% year over year but below expectations.
• The company increased its quarterly dividend to $0.40 per share, implying a $1.60 annualized payout and a 9.1% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $18.89.

Bank of New York Mellon Corp purchased a new stake in shares of Hercules Capital, Inc. (NYSE:HTGC - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 131,115 shares of the financial services provider's stock, valued at approximately $2,068,000. Bank of New York Mellon Corp owned 0.07% of Hercules Capital as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Fox Run Management L.L.C. grew its position in Hercules Capital by 2.8% in the 4th quarter. Fox Run Management L.L.C. now owns 24,354 shares of the financial services provider's stock worth $458,000 after purchasing an additional 657 shares in the last quarter. Centaurus Financial Inc. lifted its position in shares of Hercules Capital by 1.8% during the 3rd quarter. Centaurus Financial Inc. now owns 37,819 shares of the financial services provider's stock worth $715,000 after buying an additional 675 shares in the last quarter. Mariner LLC boosted its stake in shares of Hercules Capital by 1.4% in the 4th quarter. Mariner LLC now owns 56,453 shares of the financial services provider's stock worth $1,062,000 after buying an additional 764 shares during the last quarter. Baker Avenue Asset Management LP boosted its stake in shares of Hercules Capital by 8.0% in the 4th quarter. Baker Avenue Asset Management LP now owns 11,896 shares of the financial services provider's stock worth $224,000 after buying an additional 881 shares during the last quarter. Finally, Integrated Wealth Concepts LLC grew its holdings in shares of Hercules Capital by 5.9% in the first quarter. Integrated Wealth Concepts LLC now owns 17,241 shares of the financial services provider's stock valued at $331,000 after acquiring an additional 959 shares in the last quarter. Institutional investors own 19.69% of the company's stock.

Hercules Capital Stock Performance

NYSE:HTGC opened at $17.65 on Tuesday. The company has a market capitalization of $3.30 billion, a price-to-earnings ratio of 8.78 and a beta of 0.81. The business has a 50 day moving average of $16.61 and a 200 day moving average of $15.72. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.37 and a quick ratio of 1.37. Hercules Capital, Inc. has a 1-year low of $13.70 and a 1-year high of $19.62.

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

Hercules Capital Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 18th. Investors of record on Tuesday, August 11th were issued a dividend of $0.40 per share. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $1.60 annualized dividend and a dividend yield of 9.1%. This is an increase from Hercules Capital's previous quarterly dividend of $0.07. Hercules Capital's payout ratio is 79.60%.

Analyst Ratings Changes

Several brokerages have recently issued reports on HTGC. UBS Group raised Hercules Capital from a "neutral" rating to a "buy" rating and raised their target price for the company from $15.50 to $18.50 in a research report on Tuesday, September 1st. Weiss Ratings reissued a "hold (c)" rating on shares of Hercules Capital in a report on Wednesday, June 17th. Finally, LADENBURG THALM/SH SH lowered their price target on shares of Hercules Capital from $21.00 to $20.00 and set a "buy" rating on the stock in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $18.89.

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.

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