Horizon Technology Finance Corporation Declares Monthly Dividend of $0.11 (NASDAQ:HRZN)

Key Points

• Horizon Technology Finance Corporation has declared a monthly dividend of $0.11 per share, with a dividend yield of 18.3%, set to be paid on December 16th for stockholders of record as of November 17th.
• The company has a concerning dividend payout ratio of 114.8%, indicating it cannot currently cover its dividend with earnings alone and relies on its balance sheet for payments.
• Horizon Technology Finance reported earnings of $0.28 per share for the last quarter, meeting consensus estimates, but generated a revenue of ($9.89 million, significantly under analysts' expectations.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) announced a monthly dividend on Tuesday, August 12th, Wall Street Journal reports. Stockholders of record on Monday, November 17th will be given a dividend of 0.11 per share by the investment management company on Tuesday, December 16th. This represents a c) annualized dividend and a dividend yield of 18.3%. The ex-dividend date of this dividend is Monday, November 17th.

Horizon Technology Finance has a dividend payout ratio of 114.8% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Horizon Technology Finance to earn $1.26 per share next year, which means the company may not be able to cover its $1.32 annual dividend with an expected future payout ratio of 104.8%.

Horizon Technology Finance Trading Up 0.8%

Shares of Horizon Technology Finance stock traded up $0.06 during trading hours on Tuesday, hitting $7.20. 628,964 shares of the company were exchanged, compared to its average volume of 462,828. The business has a 50-day moving average of $7.68 and a 200-day moving average of $8.34. The stock has a market capitalization of $306.36 million, a price-to-earnings ratio of -6.26 and a beta of 0.99. Horizon Technology Finance has a 1 year low of $6.77 and a 1 year high of $11.47.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The investment management company reported $0.28 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.28. The firm had revenue of ($9.89) million during the quarter, compared to analysts' expectations of $24.54 million. Horizon Technology Finance had a positive return on equity of 13.54% and a negative net margin of 48.76%. As a group, research analysts anticipate that Horizon Technology Finance will post 1.38 earnings per share for the current fiscal year.

Institutional Trading of Horizon Technology Finance

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HRZN. Marshall Wace LLP acquired a new stake in Horizon Technology Finance in the 4th quarter worth about $1,288,000. Green Alpha Advisors LLC boosted its stake in Horizon Technology Finance by 23.5% in the 1st quarter. Green Alpha Advisors LLC now owns 358,742 shares of the investment management company's stock worth $3,379,000 after buying an additional 68,295 shares during the last quarter. TrueMark Investments LLC boosted its stake in Horizon Technology Finance by 30.2% in the 1st quarter. TrueMark Investments LLC now owns 272,512 shares of the investment management company's stock worth $2,567,000 after buying an additional 63,134 shares during the last quarter. International Assets Investment Management LLC acquired a new stake in Horizon Technology Finance in the 2nd quarter worth about $411,000. Finally, Jane Street Group LLC acquired a new stake in Horizon Technology Finance in the 4th quarter worth about $447,000. Hedge funds and other institutional investors own 4.94% of the company's stock.

Horizon Technology Finance Company Profile

Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries.

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