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

Key Points

• Horizon Technology Finance declared a monthly dividend of $0.06 per share, equivalent to $0.72 annually and a 15.8% yield. The dividend is payable December 15 to shareholders of record on November 17.
• The dividend appears covered by earnings, with a current payout ratio of 62.6%, though analysts expect that ratio to rise to 88.9% next year.
• HRZN reported quarterly EPS of $0.11, below the $0.13 consensus estimate. Analysts maintain an overall “Hold” rating, with an average price target of $5.65 versus the stock’s $4.55 opening price.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) announced a monthly dividend on Tuesday, August 4th. Stockholders of record on Tuesday, November 17th will be given a dividend of 0.06 per share by the investment management company on Tuesday, December 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 Tuesday, November 17th.

Horizon Technology Finance has raised its dividend by an average of 0.0%annually over the last three years. Horizon Technology Finance has a payout ratio of 62.6% indicating that its dividend is sufficiently covered by earnings. 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 Price Performance

HRZN opened at $4.55 on Wednesday. The company has a market capitalization of $310.79 million, a PE ratio of 10.59 and a beta of 0.98. Horizon Technology Finance has a fifty-two week low of $3.80 and a fifty-two week high of $7.76. The business has a 50-day moving average of $4.48 and a 200-day moving average of $4.88.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The investment management company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.02). Horizon Technology Finance had a net margin of 22.55% and a return on equity of 13.63%. The firm had revenue of ($44.66) million during the quarter, compared to the consensus estimate of $25.22 million. On average, equities research analysts expect that Horizon Technology Finance will post 0.69 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. Zacks Research upgraded shares of Horizon Technology Finance from a "strong sell" rating to a "hold" rating in a research note on Thursday, May 7th. Weiss Ratings reissued a "sell (d+)" rating on shares of Horizon Technology Finance in a research report on Friday, May 8th. Finally, UBS Group dropped their price target on shares of Horizon Technology Finance from $4.50 to $4.25 and set a "neutral" rating on the stock in a research note on Monday, May 18th. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $5.65.

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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