Hercules Capital, Inc. (NYSE:HTGC) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Moderate Buy consensus from eight analysts (average 1‑year price target $18.04), but several firms have recently trimmed targets or downgraded the stock (UBS, Weiss, Wells Fargo, etc.).
• Insider buying — directors Nikos Theodosopoulos and Gayle A. Crowell bought sizable stakes in February; insiders acquired 117,015 shares (~$1.75M) in the last 90 days and now own 1.8% of the company, signaling management confidence.
• Legal risk: multiple securities class‑action complaints allege copying of Google Ventures’ deal sourcing and misstated marks/PIK loans, with lead‑plaintiff solicitations and a May 19 deadline that could result in costly settlements or reputational damage.

Shares of Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the eight research firms that are presently covering the stock, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $18.0417.

HTGC has been the topic of several recent analyst reports. UBS Group reduced their target price on Hercules Capital from $19.50 to $15.00 and set a "neutral" rating on the stock in a research report on Friday, March 13th. Citizens Jmp cut their price objective on Hercules Capital from $24.00 to $22.00 and set a "market outperform" rating on the stock in a report on Wednesday, April 22nd. Wells Fargo & Company cut their price objective on Hercules Capital from $18.00 to $17.00 and set an "overweight" rating on the stock in a report on Friday, February 13th. Weiss Ratings lowered Hercules Capital from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, February 24th. Finally, Keefe, Bruyette & Woods cut their price objective on Hercules Capital from $19.00 to $18.00 and set an "outperform" rating on the stock in a report on Thursday, April 16th.

Insiders Place Their Bets

In other news, Director Nikos Theodosopoulos acquired 6,165 shares of the business's stock in a transaction dated Tuesday, February 17th. The shares were acquired at an average cost of $15.93 per share, with a total value of $98,208.45. Following the completion of the acquisition, the director owned 18,923 shares of the company's stock, valued at approximately $301,443.39. This trade represents a 48.32% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Gayle A. Crowell acquired 6,600 shares of the business's stock in a transaction dated Monday, February 23rd. The stock was purchased at an average cost of $15.20 per share, for a total transaction of $100,320.00. Following the completion of the acquisition, the director directly owned 87,458 shares of the company's stock, valued at approximately $1,329,361.60. This trade represents a 8.16% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders acquired 117,015 shares of company stock valued at $1,749,620. Insiders own 1.80% of the company's stock.

Institutional Trading of Hercules Capital

A number of hedge funds have recently modified their holdings of HTGC. Integrated Wealth Concepts LLC boosted its stake in shares of Hercules Capital by 5.9% in the first quarter. Integrated Wealth Concepts LLC now owns 17,241 shares of the financial services provider's stock worth $331,000 after buying an additional 959 shares during the last quarter. Empowered Funds LLC boosted its stake in shares of Hercules Capital by 85.9% in the first quarter. Empowered Funds LLC now owns 22,854 shares of the financial services provider's stock worth $439,000 after buying an additional 10,559 shares during the last quarter. Focus Partners Wealth boosted its stake in shares of Hercules Capital by 26.0% in the first quarter. Focus Partners Wealth now owns 15,747 shares of the financial services provider's stock worth $302,000 after buying an additional 3,250 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Hercules Capital by 81.8% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,780 shares of the financial services provider's stock worth $87,000 after buying an additional 2,151 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Hercules Capital by 1.6% in the second quarter. Invesco Ltd. now owns 78,951 shares of the financial services provider's stock worth $1,443,000 after buying an additional 1,252 shares during the last quarter. Hedge funds and other institutional investors own 19.69% of the company's stock.

Key Stories Impacting Hercules Capital

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

• Positive Sentiment: Significant insider buying reported (including the CEO and several directors), which can signal management confidence and provide support under the stock. Quiver Quantitative: CEO Pay & Insider Activity
• Positive Sentiment: Some sell‑side coverage remains constructive (recent buy ratings/price targets above the current level), which could limit downside if litigation noise stabilizes. Quiver Quantitative: Analyst Targets Summary
• Neutral Sentiment: Disclosure of CEO compensation for 2025 (estimated increase) — may draw investor scrutiny but is not an immediate operational development. Quiver Quantitative: CEO Pay Revealed
• Neutral Sentiment: Recent market commentary noted HTGC’s price movement and above‑average volatility relative to broader indices — useful context for trading but not a company event. Zacks: HTGC Price Movement
• Negative Sentiment: Multiple securities class‑action complaints have been filed alleging that Hercules copied Google Ventures’ deal sourcing and misstated marks/PIK loans — these allegations create litigation risk, potential damages, and reputational harm that typically pressure BDC stocks. Hagens Berman: Class Action Notice & Allegations
• Negative Sentiment: Several plaintiff firms (Rosen, Hagens Berman, Schall, Faruqi & Faruqi, Gross, others) are soliciting lead‑plaintiff clients and reminding investors of a May 19 deadline — sustained media/legal attention raises the chance of costly settlements, increased legal expenses, and distracted management. Rosen Law Firm: Lead Plaintiff Deadline Notice

Hercules Capital Trading Down 0.1%

Shares of NYSE:HTGC opened at $15.50 on Monday. The business's 50-day moving average is $14.92 and its 200 day moving average is $16.95. Hercules Capital has a 1 year low of $13.70 and a 1 year high of $19.67. The firm has a market capitalization of $2.85 billion, a P/E ratio of 8.47 and a beta of 0.83. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.48 and a quick ratio of 1.48.

Hercules Capital (NYSE:HTGC - Get Free Report) last announced its earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.48. Hercules Capital had a return on equity of 15.97% and a net margin of 63.80%.The company had revenue of $133.25 million for the quarter, compared to analyst estimates of $141.57 million. During the same period in the prior year, the company posted $0.49 EPS. On average, research analysts predict that Hercules Capital will post 1.95 earnings per share for the current fiscal year.

Hercules Capital Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 25th were issued a $0.07 dividend. The ex-dividend date of this dividend was Wednesday, February 25th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.8%. Hercules Capital's dividend payout ratio is currently 87.43%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.