Hercules Capital, Inc. $HTGC Shares Sold by JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. cut its stake in Hercules Capital by 20.3%, selling 106,781 shares and leaving it with 419,588 shares (about 0.23% of the company) valued at roughly $7.93 million.
• Legal risk is rising: multiple securities class actions have been filed following a short‑seller report (firms named include Faruqi, Levi & Korsinsky, Hagens Berman and others), increasing potential headline volatility and litigation exposure.
• Mixed fundamentals and payout pressure: Q results showed EPS of $0.48 (in line) but revenue missed estimates, and the company paid a reduced quarterly dividend of $0.07 ($0.28 annualized, 2.0% yield) with a high payout ratio (~87%).

JPMorgan Chase & Co. reduced its position in Hercules Capital, Inc. (NYSE:HTGC - Free Report) by 20.3% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 419,588 shares of the financial services provider's stock after selling 106,781 shares during the quarter. JPMorgan Chase & Co. owned about 0.23% of Hercules Capital worth $7,934,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Integrated Wealth Concepts LLC grew its stake in Hercules Capital by 5.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 17,241 shares of the financial services provider's stock worth $331,000 after buying an additional 959 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Hercules Capital by 85.9% during the first quarter. Empowered Funds LLC now owns 22,854 shares of the financial services provider's stock worth $439,000 after acquiring an additional 10,559 shares during the last quarter. Focus Partners Wealth increased its holdings in shares of Hercules Capital by 26.0% during the first quarter. Focus Partners Wealth now owns 15,747 shares of the financial services provider's stock valued at $302,000 after acquiring an additional 3,250 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Hercules Capital by 81.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,780 shares of the financial services provider's stock valued at $87,000 after acquiring an additional 2,151 shares in the last quarter. Finally, Quantbot Technologies LP raised its position in shares of Hercules Capital by 745.7% in the 2nd quarter. Quantbot Technologies LP now owns 141,787 shares of the financial services provider's stock valued at $2,592,000 after purchasing an additional 125,022 shares during the last quarter. Hedge funds and other institutional investors own 19.69% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on HTGC. Wells Fargo & Company dropped their target price on shares of Hercules Capital from $18.00 to $17.00 and set an "overweight" rating on the stock in a research report on Friday, February 13th. Wall Street Zen cut shares of Hercules Capital from a "buy" rating to a "hold" rating in a report on Saturday, December 20th. Piper Sandler downgraded shares of Hercules Capital from an "overweight" rating to a "neutral" rating and lowered their price objective for the stock from $20.50 to $17.50 in a research note on Friday, February 13th. Capital One Financial set a $19.75 price objective on shares of Hercules Capital in a report on Monday, December 15th. Finally, Lucid Cap Mkts raised Hercules Capital to a "strong-buy" rating in a research report on Monday, December 15th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $18.71.

Hercules Capital Trading Up 2.2%

NYSE HTGC opened at $14.20 on Tuesday. Hercules Capital, Inc. has a 1 year low of $13.70 and a 1 year high of $19.67. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.48 and a quick ratio of 1.48. The company has a market capitalization of $2.61 billion, a PE ratio of 7.76 and a beta of 0.88. The company has a fifty day moving average of $15.84 and a 200 day moving average of $17.44.

Hercules Capital (NYSE:HTGC - Get Free Report) last announced its quarterly earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share for the quarter, hitting the consensus estimate of $0.48. The company had revenue of $133.25 million for the quarter, compared to the consensus estimate of $141.57 million. Hercules Capital had a return on equity of 15.97% and a net margin of 63.80%.During the same period last year, the firm earned $0.49 EPS. Research analysts forecast that Hercules Capital, Inc. will post 1.96 earnings per share for the current year.

Hercules Capital Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 4th. Investors of record on Wednesday, February 25th were issued a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend was Wednesday, February 25th. Hercules Capital's dividend payout ratio (DPR) is 87.43%.

Key Headlines Impacting Hercules Capital

Here are the key news stories impacting Hercules Capital this week:

• Positive Sentiment: Coverage noting HTGC’s intraday gain (market‑wide wrap): short item reporting the stock rose ~2.2%, which can attract momentum/contrarian buying. Hercules Capital (HTGC) Advances While Market Declines: Some Information for Investors
• Positive Sentiment: Same market‑move coverage syndicated by Zacks, reinforcing the headline momentum that may support short‑term buying interest. Hercules Capital (HTGC) Advances While Market Declines: Some Information for Investors
• Positive Sentiment: Bullish thesis pieces summarize reasons some investors like HTGC (valuation, dividend/earnings metrics) and can support longer‑term buying interest among value/income investors. Is Hercules Capital, Inc. (HTGC) A Good Stock To Buy Now?
• Neutral Sentiment: Additional bullish/analytical coverage syndicated to Yahoo/MSN summarizing the same buy case and valuation metrics — useful context but not new company‑specific catalysts. Is Hercules Capital, Inc. (HTGC) A Good Stock To Buy Now?
• Negative Sentiment: Faruqi & Faruqi notifies investors of a securities class action and May 19, 2026 deadline to seek lead plaintiff status — increases litigation risk and potential headline volatility. HTGC EQUITY ALERT: Faruqi & Faruqi, LLP Reminds Hercules Capital (HTGC) Investors of Securities Class Action Deadline on May 19, 2026
• Negative Sentiment: Levi & Korsinsky issues an investor alert about a pending securities class action naming senior officers; another direct legal risk signal that can pressure the stock. HTGC Investor Alert: Hercules Capital Securities Fraud Lawsuit - Levi & Korsinsky
• Negative Sentiment: Hagens Berman files a class action following a short‑seller report that accused the company of copying deal sourcing; the involvement of a short report plus suit amplifies reputational and disclosure risk. Hercules Capital (HTGC) Faces Securities Class Action After Short Seller Claims Company Copied Google Ventures -- Hagens Berman
• Negative Sentiment: Bronstein Gewirtz Grossman and Rosen Law Firm also announce actions/alerts for the same class period — multiple firms contacting investors increases the likelihood of consolidated litigation and continued newsflow. Bronstein, Gewirtz & Grossman LLC Urges Hercules Capital, Inc. Investors to Act ROSEN, NATIONAL TRIAL COUNSEL, Encourages Hercules Capital, Inc. Investors to Secure Counsel

Insider Activity at Hercules Capital

In related news, CFO Seth H. Meyer purchased 7,000 shares of the firm's stock in a transaction on Friday, February 27th. The stock was bought at an average cost of $14.33 per share, with a total value of $100,310.00. Following the completion of the acquisition, the chief financial officer owned 448,553 shares of the company's stock, valued at $6,427,764.49. The trade was a 1.59% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Nikos Theodosopoulos acquired 6,165 shares of the stock in a transaction on Tuesday, February 17th. The stock was bought at an average price of $15.93 per share, for a total transaction of $98,208.45. Following the transaction, the director owned 18,923 shares in the company, valued at approximately $301,443.39. This represents a 48.32% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 117,015 shares of company stock valued at $1,749,620 in the last 90 days. 1.80% of the stock is currently owned by corporate insiders.

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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