Horizon Technology Finance Corporation (NASDAQ:HRZN) Given Average Rating of "Reduce" by Brokerages

Key Points

• The eight covering brokerages give HRZN an average recommendation of "Reduce" (3 sell, 4 hold, 1 buy) with a mean 12‑month price target of $6.17.
• Horizon missed earnings and revenue in its last quarter (EPS $0.18 vs. $0.30 expected; revenue $0.58M vs. $25.64M expected) and the stock trades at $3.88, near its 52‑week low.
• The company announced a monthly dividend of $0.06 (annualized yield ~18.6%), but a negative payout ratio (-450%) suggests questions about dividend sustainability.

Shares of Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) have been given an average recommendation of "Reduce" by the eight brokerages that are presently covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $6.1667.

A number of research analysts have weighed in on HRZN shares. B. Riley Financial reduced their target price on Horizon Technology Finance from $7.00 to $5.50 and set a "neutral" rating for the company in a report on Friday, March 6th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Horizon Technology Finance in a report on Thursday, January 22nd. Zacks Research lowered Horizon Technology Finance from a "hold" rating to a "strong sell" rating in a report on Thursday, March 5th. Oppenheimer reduced their target price on Horizon Technology Finance from $7.00 to $6.00 and set a "market perform" rating for the company in a report on Tuesday, March 24th. Finally, Keefe, Bruyette & Woods raised Horizon Technology Finance from an "underperform" rating to a "market perform" rating and set a $5.00 target price for the company in a report on Thursday, March 5th.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in HRZN. Quantbot Technologies LP grew its holdings in Horizon Technology Finance by 300.7% during the 2nd quarter. Quantbot Technologies LP now owns 17,332 shares of the investment management company's stock valued at $125,000 after buying an additional 13,007 shares in the last quarter. Marshall Wace LLP purchased a new position in shares of Horizon Technology Finance during the second quarter worth about $103,000. BNP Paribas Financial Markets purchased a new position in shares of Horizon Technology Finance during the second quarter worth about $122,000. Oxford Asset Management LLP purchased a new position in shares of Horizon Technology Finance during the second quarter worth about $285,000. Finally, Tower Research Capital LLC TRC purchased a new position in shares of Horizon Technology Finance during the second quarter worth about $60,000. Hedge funds and other institutional investors own 4.94% of the company's stock.

Horizon Technology Finance Stock Performance

Shares of Horizon Technology Finance stock opened at $3.88 on Monday. Horizon Technology Finance has a 52-week low of $3.88 and a 52-week high of $9.07. The stock's 50-day simple moving average is $4.79 and its 200 day simple moving average is $5.89. The stock has a market capitalization of $185.50 million, a P/E ratio of -24.25 and a beta of 1.10.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last posted its earnings results on Tuesday, March 3rd. The investment management company reported $0.18 earnings per share for the quarter, missing analysts' consensus estimates of $0.30 by ($0.12). The company had revenue of $0.58 million for the quarter, compared to analysts' expectations of $25.64 million. Horizon Technology Finance had a negative net margin of 2.77% and a positive return on equity of 14.52%. Equities research analysts forecast that Horizon Technology Finance will post 0.76 EPS for the current fiscal year.

Horizon Technology Finance Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Monday, May 18th will be issued a dividend of $0.06 per share. This represents a c) dividend on an annualized basis and a yield of 18.6%. The ex-dividend date of this dividend is Monday, May 18th. Horizon Technology Finance's payout ratio is presently -450.00%.

About Horizon Technology Finance

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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