J.M. Arbour LLC Invests $1.31 Million in Hercules Capital, Inc. $HTGC

Key Points

• J.M. Arbour LLC opened a new position in Hercules Capital, buying 69,603 shares worth about $1.31 million in Q4 (the stock is now its 24th-largest holding), while several other institutions also increased stakes and institutional ownership stands near 19.7%.
• Company insiders showed buying interest recently — CFO Seth H. Meyer purchased 7,000 shares and Director Thomas J. Fallon bought 20,000 shares — and insiders have bought 117,015 shares over the last 90 days, representing roughly 1.8% insider ownership.
• Hercules faces heightened legal risk from multiple securities class action allegations (including misclassification of software exposure and claims of copying competitors) that could prompt write-downs and pressure the stock, and it recently cut its quarterly dividend to $0.07 (annualized $0.28, a 1.8% yield) with a payout ratio of about 87.4%.

J.M. Arbour LLC bought a new position in shares of Hercules Capital, Inc. (NYSE:HTGC - Free Report) in the 4th quarter, according to its most recent 13F filing with the SEC. The fund bought 69,603 shares of the financial services provider's stock, valued at approximately $1,310,000. Hercules Capital accounts for approximately 1.3% of J.M. Arbour LLC's holdings, making the stock its 24th biggest holding.

Several other institutional investors also recently modified their holdings of the stock. Van ECK Associates Corp grew its position in shares of Hercules Capital by 0.8% during the 3rd quarter. Van ECK Associates Corp now owns 3,647,184 shares of the financial services provider's stock worth $68,969,000 after buying an additional 28,757 shares during the period. Muzinich & Co. Inc. grew its position in shares of Hercules Capital by 34.5% during the 4th quarter. Muzinich & Co. Inc. now owns 1,335,787 shares of the financial services provider's stock worth $25,140,000 after buying an additional 342,967 shares during the period. UBS Group AG grew its position in shares of Hercules Capital by 14.4% during the 3rd quarter. UBS Group AG now owns 1,318,768 shares of the financial services provider's stock worth $24,938,000 after buying an additional 165,762 shares during the period. Qube Research & Technologies Ltd grew its position in shares of Hercules Capital by 77.0% during the 3rd quarter. Qube Research & Technologies Ltd now owns 1,027,274 shares of the financial services provider's stock worth $19,426,000 after buying an additional 446,860 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. grew its position in shares of Hercules Capital by 15.1% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,018,759 shares of the financial services provider's stock worth $19,173,000 after buying an additional 133,813 shares during the period. 19.69% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, CFO Seth H. Meyer bought 7,000 shares of the stock in a transaction on Friday, February 27th. The stock was purchased at an average price of $14.33 per share, for a total transaction of $100,310.00. Following the acquisition, the chief financial officer owned 448,553 shares in the company, valued at approximately $6,427,764.49. This trade represents a 1.59% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Thomas J. Fallon purchased 20,000 shares of Hercules Capital stock in a transaction on Tuesday, February 17th. The shares were purchased at an average cost of $15.88 per share, with a total value of $317,600.00. Following the transaction, the director owned 120,369 shares in the company, valued at approximately $1,911,459.72. The trade was a 19.93% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have purchased 117,015 shares of company stock worth $1,749,620. 1.80% of the stock is currently owned by insiders.

Hercules Capital Price Performance

Shares of HTGC opened at $15.61 on Friday. The firm has a market capitalization of $2.87 billion, a PE ratio of 8.53 and a beta of 0.83. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.48 and a current ratio of 1.48. Hercules Capital, Inc. has a 52-week low of $13.70 and a 52-week high of $19.67. The stock has a 50 day simple moving average of $15.02 and a 200 day simple moving average of $17.09.

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

Hercules Capital Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 25th were issued a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date was Wednesday, February 25th. Hercules Capital's dividend payout ratio is 87.43%.

Trending Headlines about Hercules Capital

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

• Positive Sentiment: Keefe, Bruyette & Woods lowered its price target on HTGC from $19.00 to $18.00 but maintained an "outperform" rating, implying meaningful upside from current levels and signaling continued analyst confidence in the name. KBW Lowers Price Target
• Neutral Sentiment: Multiple plaintiff law firms are circulating investor alerts and reminding shareholders of a May 19, 2026 lead‑plaintiff deadline — procedural notices that increase awareness and potential participation in litigation but do not themselves change the merits of claims. Glancy Prongay Wolke & Rotter Deadline Alert
• Negative Sentiment: Hercules is facing a securities class action that follows a critical Hunterbrook Media report alleging the company copied Google Ventures’ sourcing and misstated its practices; the suit covers purchases from May 1, 2025 through Feb 27, 2026 — heightened legal risk and reputational damage that can pressure the share price. Hagens Berman Class Action Alert
• Negative Sentiment: A report and related filings allege Hercules misclassified software‑related portfolio exposure (concealing concentration and distressed valuations), claims that—if substantiated—could require portfolio write‑downs or reclassification and further erode investor confidence. SueWallSt Alleged Misclassification
• Negative Sentiment: PR notices from plaintiffs’ firms cite a corrective disclosure that reportedly erased about $1.22 per share in value after February 26, 2026 and quantify alleged investor damages — a concrete damage estimate that can increase settlement pressure and promote investor selling. Levi & Korsinsky Investor Alert

Wall Street Analysts Forecast Growth

HTGC has been the subject of several analyst reports. Wall Street Zen lowered Hercules Capital from a "buy" rating to a "hold" rating in a research report on Saturday, December 20th. Keefe, Bruyette & Woods decreased their target price on Hercules Capital from $19.00 to $18.00 and set an "outperform" rating for the company in a research report on Thursday. UBS Group decreased their target price on Hercules Capital from $19.50 to $15.00 and set a "neutral" rating for the company in a research report on Friday, March 13th. Wells Fargo & Company decreased their price objective on Hercules Capital from $18.00 to $17.00 and set an "overweight" rating for the company in a research report on Friday, February 13th. Finally, Weiss Ratings lowered Hercules Capital from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $18.38.

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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