Horizon Technology Finance Corporation (NASDAQ:HRZN) to Issue $0.03 Dividend

Key Points

• Horizon declared a $0.03 dividend, with shareholders of record on Aug 17 (ex-dividend date Aug 17) and payment scheduled for Sep 15.
• The company has a current payout ratio of 62.6%, and analysts forecast $0.81 EPS next year—implying the reported $0.72 annual dividend would be roughly 88.9% covered by projected earnings.
• Shares rose about 4.1% to $4.40 on the news, but analyst sentiment is mixed-to-negative with an average rating of "Reduce" and an average price target of $6.10.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) declared a dividend on Tuesday, May 5th. Shareholders of record on Monday, August 17th will be paid a dividend of 0.03 per share by the investment management company on Tuesday, September 15th. The ex-dividend date of this dividend is Monday, August 17th.

Horizon Technology Finance has raised its dividend payment by an average of 0.0%per year 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. Equities 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 Trading Up 4.1%

HRZN stock traded up $0.17 during mid-day trading on Wednesday, hitting $4.40. 819,628 shares of the company were exchanged, compared to its average volume of 1,042,853. The company has a market capitalization of $210.56 million, a PE ratio of -27.41 and a beta of 0.99. Horizon Technology Finance has a twelve month low of $3.80 and a twelve month high of $8.46. The firm has a fifty day simple moving average of $4.55 and a 200 day simple moving average of $5.82.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The investment management company reported $0.19 earnings per share for the quarter, hitting the consensus estimate of $0.19. The company had revenue of ($6.19) million during the quarter, compared to analyst estimates 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 anticipate that Horizon Technology Finance will post 0.78 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on HRZN. B. Riley Financial decreased their price objective on shares of Horizon Technology Finance from $7.00 to $5.50 and set a "neutral" rating for the company in a report on Friday, March 6th. Wall Street Zen lowered shares of Horizon Technology Finance from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Zacks Research downgraded shares of Horizon Technology Finance from a "hold" rating to a "strong sell" rating in a research report on Thursday, March 5th. Oppenheimer reduced their price target on shares of Horizon Technology Finance from $7.00 to $6.00 and set a "market perform" rating on the stock in a research report on Tuesday, March 24th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Horizon Technology Finance in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target 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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