Hercules Capital, Inc. (NYSE:HTGC) to Issue Quarterly Dividend of $0.07

Key Points

• Hercules Capital declared a quarterly dividend of $0.07 per share, payable May 21 to holders of record on May 14 (ex-dividend date May 14).
• The dividend implies a yield of about 1.7% and the company reports a payout ratio around 80.4%; analysts expect $1.95 EPS next year, suggesting the payout is currently covered but could be at risk if earnings decline.
• Shares rose roughly 3.8% to $16.09 on the news; Hercules has a market cap near $2.95 billion and a P/E of 8.79.

Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) declared a quarterly dividend on Thursday, April 30th. Stockholders of record on Thursday, May 14th will be given a dividend of 0.07 per share by the financial services provider on Thursday, May 21st. This represents a c) annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Thursday, May 14th.

Hercules Capital has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 1 years. Hercules Capital has a payout ratio of 80.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Hercules Capital to earn $1.95 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 82.1%.

Hercules Capital Trading Up 3.8%

Shares of HTGC traded up $0.59 during midday trading on Thursday, hitting $16.09. 1,809,682 shares of the stock were exchanged, compared to its average volume of 2,454,669. Hercules Capital has a 52-week low of $13.70 and a 52-week high of $19.67. The stock has a fifty day simple moving average of $14.91 and a 200 day simple moving average of $16.92. The firm has a market cap of $2.95 billion, a P/E ratio of 8.79 and a beta of 0.83. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.48 and a current ratio of 1.48.

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

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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