UBS Group AG Has $31.46 Million Stake in Hercules Capital, Inc. $HTGC

Key Points

• UBS Group AG increased its stake in Hercules Capital by 26.8% in the fourth quarter, buying 353,092 more shares and bringing its total position to 1,671,860 shares worth about $31.46 million.
• Analyst sentiment remains mixed, with recent target-price cuts from several firms including UBS, though the stock still carries a consensus rating of Moderate Buy and an average target price of $18.13.
• Hercules Capital posted solid recent results, reporting Q1 EPS of $0.48 versus the $0.47 estimate and announcing a quarterly dividend of $0.07 per share, though the payout ratio is high at 90.40%.

UBS Group AG grew its position in Hercules Capital, Inc. (NYSE:HTGC - Free Report) by 26.8% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,671,860 shares of the financial services provider's stock after purchasing an additional 353,092 shares during the period. UBS Group AG owned about 0.92% of Hercules Capital worth $31,464,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Caitlin John LLC acquired a new position in Hercules Capital in the third quarter worth approximately $29,000. Orion Capital Management LLC acquired a new stake in shares of Hercules Capital in the third quarter worth about $38,000. Atlantic Union Bankshares Corp acquired a new stake in shares of Hercules Capital in the third quarter worth about $38,000. Whittier Trust Co. of Nevada Inc. acquired a new stake in shares of Hercules Capital in the fourth quarter worth about $53,000. Finally, WFA of San Diego LLC acquired a new stake in shares of Hercules Capital in the second quarter worth about $55,000. 19.69% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

HTGC has been the subject of a number of recent analyst reports. Weiss Ratings cut Hercules Capital from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, February 24th. 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, April 16th. Wells Fargo & Company decreased their target price 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. Piper Sandler upped their target price on Hercules Capital from $16.50 to $17.00 and gave the stock a "neutral" rating in a research report on Wednesday. Finally, 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. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $18.13.

More Hercules Capital News

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

• Negative Sentiment: Multiple law firms on May 7-8 reminded investors about a May 19 lead-plaintiff deadline in an already-filed securities class action against Hercules Capital, increasing the market’s focus on alleged investor harm and possible litigation costs. Article Title
• Negative Sentiment: Additional notices from firms including Faruqi & Faruqi, The Gross Law Firm, Rosen Law Firm, Pomerantz, Bronstein Gewirtz & Grossman, and others kept the class-action story in front of investors, reinforcing uncertainty around the company’s disclosures during the May 1, 2025 to Feb. 27, 2026 class period. Article Title
• Neutral Sentiment: A Seeking Alpha piece argued Hercules Capital still has solid portfolio quality and dividend coverage, suggesting the selloff may be more about valuation and legal headlines than a collapse in fundamentals. Article Title
• Neutral Sentiment: The company also announced the date of its 2026 annual stockholders meeting, which is routine corporate news and unlikely to move the stock on its own. Article Title

Insider Transactions at Hercules Capital

In related news, Director Nikos Theodosopoulos acquired 6,165 shares of the company's stock in a transaction on Tuesday, February 17th. The stock was purchased at an average cost of $15.93 per share, for a total transaction of $98,208.45. Following the completion of the purchase, the director directly owned 18,923 shares of the company's stock, valued at $301,443.39. The trade was a 48.32% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Scott Bluestein acquired 30,000 shares of the business's stock in a transaction on Tuesday, February 24th. The shares were bought at an average cost of $15.08 per share, with a total value of $452,400.00. Following the completion of the acquisition, the chief executive officer owned 2,509,379 shares of the company's stock, valued at approximately $37,841,435.32. This trade represents a 1.21% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 117,015 shares of company stock valued at $1,749,620 over the last 90 days. Corporate insiders own 1.80% of the company's stock.

Hercules Capital Stock Down 1.4%

Shares of HTGC stock opened at $16.18 on Friday. The stock has a market cap of $3.03 billion, a P/E ratio of 9.14 and a beta of 0.82. Hercules Capital, Inc. has a one year low of $13.70 and a one year high of $19.67. The stock has a fifty day moving average price of $14.99 and a 200 day moving average price of $16.90. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.89 and a quick ratio of 1.48.

Hercules Capital (NYSE:HTGC - Get Free Report) last issued its earnings results on Tuesday, May 5th. The financial services provider reported $0.48 EPS for the quarter, topping the consensus estimate of $0.47 by $0.01. The firm had revenue of $134.94 million during the quarter, compared to analysts' expectations of $141.39 million. Hercules Capital had a return on equity of 16.05% and a net margin of 59.85%.Hercules Capital's quarterly revenue was up 18.4% compared to the same quarter last year. During the same period last year, the business earned $0.45 earnings per share. Analysts predict that Hercules Capital, Inc. will post 1.93 earnings per share for the current year.

Hercules Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Thursday, May 14th will be given a $0.07 dividend. This represents a $0.28 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Thursday, May 14th. Hercules Capital's dividend payout ratio (DPR) is 90.40%.

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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