FY2025 EPS Estimate for Hercules Capital Reduced by Analyst

Key Points

• Zacks Research has lowered its FY2025 earnings estimate for Hercules Capital to $1.91 per share, slightly down from its previous forecast of $1.92, while the current consensus is $1.96 per share.
• Hercules Capital announced an increase in its quarterly dividend to $0.47 per share, reflecting a 10.9% dividend yield and a payout ratio of 105.96%.
• The stock is currently priced at $17.17, and analysts have mixed ratings, with six rating it as a Buy and two as a Hold, and a consensus price target of $20.42.

Hercules Capital, Inc. (NYSE:HTGC - Free Report) - Stock analysts at Zacks Research cut their FY2025 earnings estimates for shares of Hercules Capital in a research note issued to investors on Wednesday, October 15th. Zacks Research analyst Team now expects that the financial services provider will earn $1.91 per share for the year, down from their prior forecast of $1.92. The consensus estimate for Hercules Capital's current full-year earnings is $1.96 per share. Zacks Research also issued estimates for Hercules Capital's FY2026 earnings at $1.99 EPS and Q1 2027 earnings at $0.51 EPS.

Hercules Capital (NYSE:HTGC - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The financial services provider reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.03. Hercules Capital had a net margin of 51.46% and a return on equity of 16.54%. The business had revenue of $137.46 million during the quarter, compared to the consensus estimate of $129.47 million. During the same period in the previous year, the firm posted $0.51 earnings per share. The firm's revenue for the quarter was up 10.0% on a year-over-year basis.

Other research analysts have also recently issued reports about the company. UBS Group reduced their price objective on Hercules Capital from $19.00 to $18.50 and set a "neutral" rating on the stock in a research note on Tuesday. Citigroup reaffirmed an "outperform" rating on shares of Hercules Capital in a research note on Monday, August 4th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Hercules Capital in a research note on Wednesday, October 8th. JMP Securities raised their price objective on Hercules Capital from $22.00 to $24.00 and gave the company a "market outperform" rating in a research note on Monday, August 4th. Finally, Piper Sandler cut their price target on shares of Hercules Capital from $21.00 to $20.50 and set an "overweight" rating on the stock in a report on Thursday, October 9th. Six equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $20.42.

Hercules Capital Stock Down 1.3%

Shares of NYSE:HTGC opened at $17.17 on Friday. The stock's 50-day moving average price is $18.89 and its 200-day moving average price is $18.36. Hercules Capital has a 12-month low of $15.65 and a 12-month high of $22.04. The stock has a market capitalization of $3.12 billion, a P/E ratio of 11.37 and a beta of 0.96. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.96.

Hercules Capital Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 19th. Stockholders of record on Tuesday, August 12th were paid a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 10.9%. The ex-dividend date of this dividend was Tuesday, August 12th. This is a positive change from Hercules Capital's previous quarterly dividend of $0.40. Hercules Capital's payout ratio is presently 105.96%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Kingstone Capital Partners Texas LLC purchased a new position in Hercules Capital during the 2nd quarter valued at about $522,447,000. Sound Income Strategies LLC increased its position in shares of Hercules Capital by 1.9% during the second quarter. Sound Income Strategies LLC now owns 2,930,340 shares of the financial services provider's stock valued at $53,567,000 after acquiring an additional 55,885 shares in the last quarter. Legal & General Group Plc increased its position in shares of Hercules Capital by 6.6% during the second quarter. Legal & General Group Plc now owns 1,253,204 shares of the financial services provider's stock valued at $22,909,000 after acquiring an additional 77,187 shares in the last quarter. LPL Financial LLC increased its position in shares of Hercules Capital by 14.5% during the first quarter. LPL Financial LLC now owns 1,130,362 shares of the financial services provider's stock valued at $21,714,000 after acquiring an additional 143,042 shares in the last quarter. Finally, Franklin Resources Inc. increased its position in shares of Hercules Capital by 41.6% during the second quarter. Franklin Resources Inc. now owns 843,114 shares of the financial services provider's stock valued at $15,412,000 after acquiring an additional 247,862 shares in the last quarter. 19.69% of the stock is owned by hedge funds and other institutional investors.

About Hercules Capital

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.

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