Legal & General Group Plc Makes New Investment in Hercules Capital, Inc. $HTGC

Key Points

• Legal & General Group acquired 1.68 million Hercules Capital shares worth approximately $26.5 million, giving it a 0.90% stake. Hedge funds and institutional investors collectively own 19.69% of the company.
• Hercules Capital reported quarterly EPS of $0.50, exceeding the $0.48 analyst estimate, while revenue rose 8.4% year over year to $134.4 million but fell short of expectations.
• The company increased its quarterly dividend to $0.40, representing a 9.2% annualized yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $18.46, versus a recent share price of $17.46.

Legal & General Group Plc acquired 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 13F filing with the SEC. The firm acquired 1,681,333 shares of the financial services provider's stock, valued at approximately $26,523,000. Legal & General Group Plc owned approximately 0.90% of Hercules Capital as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Hercules Capital in the 4th quarter worth about $27,000. Burk Holdings LLC purchased a new position in shares of Hercules Capital during the 2nd quarter valued at about $28,000. Cornerstone Planning Group LLC bought a new stake in Hercules Capital in the 4th quarter worth approximately $29,000. Fifth Third Bancorp purchased a new stake in Hercules Capital in the first quarter worth approximately $35,000. Finally, Northwestern Mutual Wealth Management Co. grew its position in Hercules Capital by 113.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,884 shares of the financial services provider's stock valued at $35,000 after acquiring an additional 1,000 shares during the last quarter. 19.69% of the stock is currently owned by hedge funds and other institutional investors.

Hercules Capital Stock Down 0.3%

NYSE HTGC opened at $17.46 on Friday. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.37 and a quick ratio of 1.37. The stock has a market capitalization of $3.27 billion, a PE ratio of 8.69 and a beta of 0.79. Hercules Capital, Inc. has a 1 year low of $13.70 and a 1 year high of $19.62. The business's 50-day moving average is $16.34 and its 200 day moving average is $15.66.

Hercules Capital (NYSE:HTGC - Get Free Report) last released 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 during the quarter, compared to analyst estimates of $146.71 million. Hercules Capital had a return on equity of 16.01% and a net margin of 67.68%.Hercules Capital's quarterly revenue was up 8.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.50 EPS. Sell-side analysts forecast that Hercules Capital, Inc. will post 1.95 earnings per share for the current year.

Hercules Capital Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 18th. Investors of record on Tuesday, August 11th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 9.2%. This is an increase from Hercules Capital's previous quarterly dividend of $0.07. The ex-dividend date was Tuesday, August 11th. Hercules Capital's dividend payout ratio (DPR) is presently 79.60%.

Analysts Set New Price Targets

HTGC has been the subject of a number of research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hercules Capital in a research note on Wednesday, June 17th. LADENBURG THALM/SH SH lowered their price target on shares of Hercules Capital from $21.00 to $20.00 and set a "buy" rating for the company in a research note on Friday, July 31st. Piper Sandler upped their price target on shares of Hercules Capital from $16.50 to $17.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Finally, UBS Group lifted their price objective on Hercules Capital from $15.00 to $15.50 and gave the stock a "neutral" rating in a report on Monday, May 18th. One 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. According to MarketBeat, Hercules Capital has a consensus rating of "Moderate Buy" and an average price target of $18.46.

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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