Horizon Technology Finance Corporation Declares Dividend of $0.03 (NASDAQ:HRZN)

Key Points

• Horizon Technology Finance declared a dividend of $0.03 per share, with record/ex-dividend date on July 16 and payable on August 14; the company currently has a 62.6% payout ratio and is forecast to have an 88.9% payout ratio next year based on expected EPS.
• The firm reported Q1 EPS of $0.19 (in line with estimates) but showed negative revenue of ($6.19) million versus $21.09 million expected, resulting in a negative net margin of 2.77% while delivering a 14.52% return on equity.
• HRZN trades near $4.33 (12‑month range $3.80–$8.46) with a $207M market cap, and analyst sentiment is mixed-to-negative with a consensus "Reduce" rating and an average target price of $6.10 (1 Buy, 4 Hold, 2 Sell).

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) declared a dividend on Tuesday, May 5th. Stockholders of record on Thursday, July 16th will be paid a dividend of 0.03 per share by the investment management company on Friday, August 14th. The ex-dividend date of this dividend is Thursday, July 16th.

Horizon Technology Finance has increased its dividend by an average of 0.0%per year over the last three years. Horizon Technology Finance has a payout ratio of 62.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Horizon Technology Finance to earn $0.81 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 88.9%.

Horizon Technology Finance Stock Up 2.4%

NASDAQ HRZN opened at $4.33 on Wednesday. Horizon Technology Finance has a 12-month low of $3.80 and a 12-month high of $8.46. The company has a market capitalization of $207.02 million, a PE ratio of -27.06 and a beta of 0.99. The firm's 50 day moving average is $4.55 and its 200-day moving average is $5.82.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last announced its earnings results on Tuesday, May 5th. The investment management company reported $0.19 EPS for the quarter, hitting the consensus estimate of $0.19. The business had revenue of ($6.19) million during the quarter, compared to analysts' expectations of $21.09 million. Horizon Technology Finance had a negative net margin of 2.77% and a positive return on equity of 14.52%. As a group, sell-side analysts expect that Horizon Technology Finance will post 0.78 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on HRZN shares. Weiss Ratings restated a "sell (d)" rating on shares of Horizon Technology Finance in a research note on Thursday, January 22nd. Wall Street Zen downgraded Horizon Technology Finance from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. B. Riley Financial dropped their target price on Horizon Technology Finance from $7.00 to $5.50 and set a "neutral" rating on the stock in a report on Friday, March 6th. Keefe, Bruyette & Woods raised Horizon Technology Finance from an "underperform" rating to a "market perform" rating and set a $5.00 price target for the company in a research report on Thursday, March 5th. Finally, Oppenheimer decreased their price target on Horizon Technology Finance from $7.00 to $6.00 and set a "market perform" rating for the company in a research note on Tuesday, March 24th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $6.10.

Horizon Technology Finance Company Profile

Horizon Technology Finance Corporation is a specialty finance company organized as a business development company (BDC) that provides private credit solutions to venture capital and private equity-backed technology, life science and healthcare companies. The firm targets companies at various stages of development, offering secured debt financing structures such as first‐lien and second‐lien loans, as well as equity co‐investment opportunities in select portfolio companies.

Horizon Technology Finance's investment strategy emphasizes deployment of capital in U.S.‐based enterprises with proven technology, strong management teams and clear paths to growth.

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