Royal Bank of Canada Trims Stock Position in Hercules Capital, Inc. $HTGC

Key Points

• Royal Bank of Canada reduced its Hercules Capital stake by 22.9% in the first quarter, selling 147,364 shares and retaining 496,406 shares valued at approximately $7.3 million. Institutional investors collectively own 19.69% of the company.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $18.46, despite several target adjustments.
• Hercules Capital reported quarterly EPS of $0.50, beating estimates by $0.02, while revenue increased 8.4% year over year. The company also raised its quarterly dividend to $0.40, implying a 9.3% annualized yield.

Royal Bank of Canada cut its holdings in shares of Hercules Capital, Inc. (NYSE:HTGC - Free Report) by 22.9% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 496,406 shares of the financial services provider's stock after selling 147,364 shares during the period. Royal Bank of Canada owned about 0.27% of Hercules Capital worth $7,333,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Hercules Capital during the 4th quarter valued at about $27,000. Cornerstone Planning Group LLC acquired a new stake in Hercules Capital during the fourth quarter worth about $29,000. Northwestern Mutual Wealth Management Co. raised 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 in the last quarter. Summit Securities Group LLC raised its position in Hercules Capital by 233.3% during the fourth quarter. Summit Securities Group LLC now owns 2,000 shares of the financial services provider's stock valued at $38,000 after acquiring an additional 1,400 shares in the last quarter. Finally, Fifth Third Bancorp acquired a new position in Hercules Capital in the first quarter valued at approximately $35,000. 19.69% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Piper Sandler upped their price objective on Hercules Capital from $16.50 to $17.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. UBS Group lifted their target price on shares of Hercules Capital from $15.00 to $15.50 and gave the company a "neutral" rating in a report on Monday, May 18th. Citizens Jmp lowered 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 report on Wednesday, April 22nd. LADENBURG THALM/SH SH dropped their price target on shares of Hercules Capital from $21.00 to $20.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hercules Capital in a report on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $18.46.

Hercules Capital Stock Performance

NYSE:HTGC opened at $17.18 on Tuesday. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.37 and a current ratio of 1.37. The stock has a market capitalization of $3.22 billion, a PE ratio of 8.55 and a beta of 0.79. Hercules Capital, Inc. has a fifty-two week low of $13.70 and a fifty-two week high of $19.67. The company has a fifty day moving average of $15.89 and a two-hundred day moving average of $15.74.

Hercules Capital (NYSE:HTGC - Get Free Report) last announced its earnings results on Thursday, July 30th. The financial services provider reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.02. Hercules Capital had a net margin of 67.68% and a return on equity of 16.01%. The business had revenue of $134.41 million for the quarter, compared to analyst estimates of $146.71 million. During the same quarter last year, the business earned $0.50 earnings per share. The company's revenue for the quarter was up 8.4% compared to the same quarter last year. As a group, research analysts forecast that Hercules Capital, Inc. will post 1.95 earnings per share for the current fiscal year.

Hercules Capital Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 18th. Investors of record on Tuesday, August 11th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 9.3%. The ex-dividend date is Tuesday, August 11th. This is a positive change from Hercules Capital's previous quarterly dividend of $0.07. Hercules Capital's payout ratio is presently 79.60%.

Hercules Capital Company 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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