Van ECK Associates Corp Buys 713,653 Shares of Hercules Capital, Inc. $HTGC

Key Points

• Van ECK Associates increased its Hercules Capital stake by 22.6%, purchasing 713,653 additional shares to own 3.88 million shares worth approximately $61.15 million. Institutional investors collectively hold 19.69% of HTGC.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $18.46, despite mixed target-price changes from individual firms.
• Hercules Capital beat quarterly earnings expectations with EPS of $0.50 versus $0.48 expected, while revenue rose 8.4% year over year. The company also raised its quarterly dividend to $0.40 per share, implying a 9.2% annualized yield.

Van ECK Associates Corp grew its stake in Hercules Capital, Inc. (NYSE:HTGC - Free Report) by 22.6% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,877,634 shares of the financial services provider's stock after buying an additional 713,653 shares during the period. Van ECK Associates Corp owned approximately 2.07% of Hercules Capital worth $61,150,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Sound Income Strategies LLC lifted its holdings in Hercules Capital by 25.1% in the 1st quarter. Sound Income Strategies LLC now owns 3,382,058 shares of the financial services provider's stock worth $49,243,000 after purchasing an additional 678,783 shares during the last quarter. LPL Financial LLC grew its holdings in Hercules Capital by 1.6% during the fourth quarter. LPL Financial LLC now owns 1,823,405 shares of the financial services provider's stock valued at $34,316,000 after purchasing an additional 29,292 shares during the last quarter. Legal & General Group Plc acquired a new position in Hercules Capital during the second quarter valued at approximately $26,523,000. UBS Group AG raised its position in shares of Hercules Capital by 26.8% in the fourth quarter. UBS Group AG now owns 1,671,860 shares of the financial services provider's stock valued at $31,464,000 after purchasing an additional 353,092 shares during the period. Finally, Qube Research & Technologies Ltd lifted its stake in shares of Hercules Capital by 77.0% in the third 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 last quarter. Institutional investors and hedge funds own 19.69% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Piper Sandler raised their target price on shares of Hercules Capital from $16.50 to $17.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. Weiss Ratings reissued a "hold (c)" rating on shares of Hercules Capital in a research report on Wednesday, June 17th. LADENBURG THALM/SH SH decreased their price target on shares of Hercules Capital from $21.00 to $20.00 and set a "buy" rating for the company in a report on Friday, July 31st. Finally, UBS Group raised their price target on Hercules Capital from $15.00 to $15.50 and gave the company a "neutral" rating in a research report on Monday, May 18th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Hercules Capital currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.46.

Hercules Capital Stock Down 0.3%

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

Hercules Capital (NYSE:HTGC - Get Free Report) last released its earnings results on Thursday, July 30th. The financial services provider reported $0.50 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 firm had revenue of $134.41 million during the quarter, compared to analysts' expectations of $146.71 million. During the same period in the prior year, the company earned $0.50 EPS. The business's quarterly revenue was up 8.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Hercules Capital, Inc. will post 1.95 earnings per share for the current year.

Hercules Capital Increases Dividend

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

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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