Kingstone Capital Partners Texas LLC Takes Position in Hercules Capital, Inc. $HTGC

Key Points

• Kingstone Capital Partners Texas LLC invested approximately $522.45 million in Hercules Capital, acquiring 28,419,870 shares, which represents 16.20% ownership of the company.
• Hercules Capital reported earnings per share of $0.50 for the latest quarter, exceeding analysts' expectations, with revenue increasing by 10% year-over-year.
• The company recently increased its quarterly dividend from $0.40 to $0.47 per share, yielding about 9.7%, with a payout ratio of 105.96%.

Kingstone Capital Partners Texas LLC acquired a new position in shares of Hercules Capital, Inc. (NYSE:HTGC - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund acquired 28,419,870 shares of the financial services provider's stock, valued at approximately $522,447,000. Kingstone Capital Partners Texas LLC owned about 16.20% of Hercules Capital at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of HTGC. Ameriflex Group Inc. purchased a new stake in shares of Hercules Capital during the 4th quarter worth approximately $29,000. N.E.W. Advisory Services LLC purchased a new stake in Hercules Capital in the 1st quarter valued at $30,000. Bessemer Group Inc. purchased a new stake in Hercules Capital in the 1st quarter valued at $38,000. Northwestern Mutual Wealth Management Co. raised its position in Hercules Capital by 51.8% in the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 2,629 shares of the financial services provider's stock valued at $51,000 after purchasing an additional 897 shares during the last quarter. Finally, Farther Finance Advisors LLC raised its position in Hercules Capital by 79.5% in the 1st quarter. Farther Finance Advisors LLC now owns 4,292 shares of the financial services provider's stock valued at $82,000 after purchasing an additional 1,901 shares during the last quarter. Hedge funds and other institutional investors own 19.69% of the company's stock.

Hercules Capital Stock Performance

Hercules Capital stock traded up $0.19 during trading hours on Tuesday, reaching $19.33. 319,813 shares of the stock were exchanged, compared to its average volume of 1,159,876. The stock has a market cap of $3.51 billion, a P/E ratio of 12.78 and a beta of 0.95. The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.68 and a current ratio of 1.68. Hercules Capital, Inc. has a 52-week low of $15.65 and a 52-week high of $22.04. The firm's 50 day moving average is $19.29 and its 200 day moving average is $18.45.

Hercules Capital (NYSE:HTGC - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The financial services provider reported $0.50 EPS for the quarter, topping analysts' consensus estimates of $0.47 by $0.03. The company had revenue of $137.46 million during the quarter, compared to the consensus estimate of $129.47 million. Hercules Capital had a net margin of 51.46% and a return on equity of 16.54%. Hercules Capital's quarterly revenue was up 10.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.51 EPS. Analysts predict that Hercules Capital, Inc. will post 1.96 EPS for the current fiscal year.

Hercules Capital Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 19th. Stockholders of record on Tuesday, August 12th were issued a $0.47 dividend. The ex-dividend date was Tuesday, August 12th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 9.7%. This is a boost from Hercules Capital's previous quarterly dividend of $0.40. Hercules Capital's payout ratio is 105.96%.

Analysts Set New Price Targets

Several analysts recently commented on HTGC shares. Citigroup reiterated an "outperform" rating on shares of Hercules Capital in a research report on Monday, August 4th. JMP Securities upped their price target on shares of Hercules Capital from $22.00 to $24.00 and gave the company a "market outperform" rating in a research report on Monday, August 4th. Piper Sandler upped their price target on shares of Hercules Capital from $20.00 to $21.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, UBS Group upped their price objective on shares of Hercules Capital from $18.50 to $19.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 16th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, Hercules Capital currently has an average rating of "Moderate Buy" and a consensus price target of $20.58.

Hercules Capital Profile

Hercules Capital, Inc is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies.