Hercules Capital, Inc. $HTGC Shares Purchased by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC increased its stake in Hercules Capital by 25.1% in the first quarter, making HTGC its largest holding and representing about 2.4% of its portfolio.
• Several other institutional investors also added to or adjusted their HTGC positions, while institutions as a group own 19.69% of the company.
• Hercules Capital reported Q1 EPS of $0.48, slightly ahead of estimates, and recently paid a quarterly dividend of $0.07 per share, implying a 1.8% yield.

Sound Income Strategies LLC grew its stake in shares of Hercules Capital, Inc. (NYSE:HTGC - Free Report) by 25.1% in the first quarter, according to the company in its most recent filing with the SEC. The firm owned 3,382,058 shares of the financial services provider's stock after acquiring an additional 678,783 shares during the quarter. Hercules Capital comprises about 2.4% of Sound Income Strategies LLC's portfolio, making the stock its biggest holding. Sound Income Strategies LLC owned approximately 1.84% of Hercules Capital worth $49,243,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently modified their holdings of HTGC. Fox Run Management L.L.C. lifted its position in Hercules Capital by 2.8% during the fourth 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 during the period. Centaurus Financial Inc. increased its holdings in Hercules Capital by 1.8% in the 3rd quarter. Centaurus Financial Inc. now owns 37,819 shares of the financial services provider's stock valued at $715,000 after buying an additional 675 shares during the period. Allworth Financial LP increased its holdings in Hercules Capital by 11.4% in the 3rd quarter. Allworth Financial LP now owns 6,652 shares of the financial services provider's stock valued at $126,000 after buying an additional 680 shares during the period. Mariner LLC raised its position 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 valued at $1,062,000 after buying an additional 764 shares in the last quarter. Finally, Signaturefd LLC raised its position in shares of Hercules Capital by 17.0% in the 4th quarter. Signaturefd LLC now owns 5,672 shares of the financial services provider's stock valued at $107,000 after buying an additional 824 shares in the last quarter. Institutional investors own 19.69% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Citizens Jmp reduced their price target on shares of Hercules Capital from $24.00 to $22.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 22nd. UBS Group boosted their price objective on shares of Hercules Capital from $15.00 to $15.50 and gave the company a "neutral" rating in a research report on Monday, May 18th. Keefe, Bruyette & Woods reduced their target price on Hercules Capital from $19.00 to $18.00 and set an "outperform" rating on the stock in a report on Thursday, April 16th. Piper Sandler raised their target price on Hercules Capital from $16.50 to $17.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Hercules Capital in a research note on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $18.21.

Hercules Capital Trading Up 0.3%

Shares of Hercules Capital stock opened at $15.97 on Friday. The firm's 50 day moving average is $15.61 and its 200 day moving average is $16.21. The firm has a market capitalization of $2.99 billion, a PE ratio of 9.02 and a beta of 0.79. Hercules Capital, Inc. has a 1 year low of $13.70 and a 1 year high of $19.67. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 1.14.

Hercules Capital (NYSE:HTGC - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The financial services provider reported $0.48 EPS for the quarter, beating the consensus estimate of $0.47 by $0.01. Hercules Capital had a net margin of 59.85% and a return on equity of 16.05%. The business had revenue of $134.94 million during the quarter, compared to the consensus estimate of $141.39 million. During the same quarter in the prior year, the firm earned $0.45 EPS. The firm's revenue was up 18.4% compared to the same quarter last year. Equities research analysts forecast that Hercules Capital, Inc. will post 1.93 earnings per share for the current fiscal year.

Hercules Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Thursday, May 14th were issued a dividend of $0.07 per share. The ex-dividend date of this dividend was Thursday, May 14th. This represents a $0.28 annualized dividend and a dividend yield of 1.8%. Hercules Capital's dividend payout ratio (DPR) is 90.40%.

Hercules Capital Profile

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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