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

Key Points

• $0.06 monthly dividend announced (annualized $0.72) with a 15.8% yield; shareholders of record April 16 will be paid on May 15.
• The dividend is currently covered, with a payout ratio of 62.6% and analysts forecasting $1.26 EPS next year, implying a projected payout ratio of about 57.1%.
• Recent results raise concerns: the firm missed quarterly EPS ($0.18 vs. $0.30) and reported just $0.58M in revenue versus $25.64M expected, and the stock trades near its 52‑week low (opened $4.57; 52‑week range $3.97–$9.07) with a ~$218M market cap.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) declared a monthly dividend on Friday, February 27th. Stockholders of record on Thursday, April 16th will be paid a dividend of 0.06 per share by the investment management company on Friday, May 15th. This represents a c) dividend on an annualized basis and a dividend yield of 15.8%. The ex-dividend date of this dividend is Thursday, April 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 payout ratio of 62.6% meaning 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 Stock Performance

Shares of HRZN stock opened at $4.57 on Tuesday. Horizon Technology Finance has a 52-week low of $3.97 and a 52-week high of $9.07. The stock has a market cap of $218.49 million, a price-to-earnings ratio of -28.56 and a beta of 1.10. The firm has a fifty day moving average of $5.20 and a 200-day moving average of $6.01.

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

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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