Horizon Technology Finance Corporation (NASDAQ:HRZN) Plans Monthly Dividend of $0.06

Key Points

• Horizon Technology Finance (NASDAQ:HRZN) declared a monthly dividend of $0.06 per share payable April 15 to shareholders of record March 16, equal to a $0.72 annualized payout and a 17.6% yield.
• The company reported a weak quarter—EPS of $0.18 missed the $0.30 consensus and revenue was $0.58 million versus a $25.64 million estimate—resulting in a negative net margin of 2.77%.
• Management's dividend is currently covered (payout ratio 62.6%), and analysts forecast $1.26 in EPS next year, which would reduce the expected payout ratio to about 57.1%, suggesting the dividend may remain sustainable.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) announced a monthly dividend on Friday, February 27th. Shareholders of record on Monday, March 16th will be given a dividend of 0.06 per share by the investment management company on Wednesday, April 15th. This represents a c) dividend on an annualized basis and a dividend yield of 17.6%. The ex-dividend date is Monday, March 16th.

Horizon Technology Finance has increased its dividend by an average of 0.0%annually over the last three years. Horizon Technology Finance has a dividend payout ratio of 62.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Horizon Technology Finance to earn $1.26 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 57.1%.

Horizon Technology Finance Price Performance

Shares of NASDAQ:HRZN opened at $4.10 on Friday. The company has a market cap of $196.02 million, a P/E ratio of -25.63 and a beta of 0.97. Horizon Technology Finance has a 1 year low of $3.97 and a 1 year high of $9.52. The stock's fifty day moving average price is $6.19 and its 200-day moving average price is $6.38.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last released its quarterly earnings data on Tuesday, March 3rd. The investment management company reported $0.18 EPS for the quarter, missing the consensus estimate of $0.30 by ($0.12). Horizon Technology Finance had a positive return on equity of 14.52% and a negative net margin of 2.77%.The business had revenue of $0.58 million during the quarter, compared to the consensus estimate of $25.64 million. On average, sell-side analysts anticipate that Horizon Technology Finance will post 1.38 earnings per share for the current year.

Hedge Funds Weigh In On Horizon Technology Finance

Several institutional investors have recently made changes to their positions in HRZN. Allworth Financial LP purchased a new stake in Horizon Technology Finance during the second quarter valued at approximately $73,000. Green Alpha Advisors LLC raised its position in Horizon Technology Finance by 29.0% in the third quarter. Green Alpha Advisors LLC now owns 500,029 shares of the investment management company's stock worth $3,050,000 after acquiring an additional 112,303 shares during the period. Virtus Investment Advisers LLC boosted its stake in shares of Horizon Technology Finance by 25.6% during the 2nd quarter. Virtus Investment Advisers LLC now owns 177,768 shares of the investment management company's stock worth $1,280,000 after acquiring an additional 36,226 shares during the last quarter. Oxford Asset Management LLP bought a new stake in shares of Horizon Technology Finance during the 2nd quarter valued at $285,000. Finally, BNP Paribas Financial Markets bought a new stake in shares of Horizon Technology Finance during the 2nd quarter valued at $122,000. Institutional investors own 4.94% of the company's stock.

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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