Horizon Technology Finance Corporation to Issue Monthly Dividend of $0.11 (NASDAQ:HRZN)

Key Points

• Horizon Technology Finance Corporation has declared a monthly dividend of $0.11 per share, representing an annualized yield of 19.3%, with a payment date set for October 15th.
• The company currently shows a payout ratio of 114.8%, indicating reliance on its balance sheet to cover dividend payments, with anticipated earnings projected to be insufficient to cover future dividends.
• Analyst sentiment is mixed, with a consensus rating of "Reduce" and a target price of $7.30, following recent changes in target prices from research firms.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report) declared a monthly dividend on Tuesday, August 5th, NASDAQ Dividends reports. Shareholders of record on Wednesday, September 17th will be given a dividend of 0.11 per share by the investment management company on Wednesday, October 15th. This represents a c) dividend on an annualized basis and a yield of 19.3%. The ex-dividend date of this dividend is Wednesday, September 17th.

Horizon Technology Finance has a payout ratio of 114.8% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Horizon Technology Finance to earn $1.26 per share next year, which means the company may not be able to cover its $1.32 annual dividend with an expected future payout ratio of 104.8%.

Horizon Technology Finance Stock Performance

Horizon Technology Finance stock opened at $6.85 on Monday. The company has a market cap of $291.44 million, a P/E ratio of -5.96 and a beta of 0.99. The firm's 50-day moving average is $7.46 and its 200-day moving average is $7.90. Horizon Technology Finance has a 1 year low of $6.77 and a 1 year high of $11.08.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The investment management company reported $0.28 earnings per share for the quarter, meeting the consensus estimate of $0.28. The firm had revenue of ($9.89) million for the quarter, compared to the consensus estimate of $24.54 million. Horizon Technology Finance had a negative net margin of 48.76% and a positive return on equity of 14.02%. As a group, sell-side analysts predict that Horizon Technology Finance will post 1.38 earnings per share for the current year.

Analyst Ratings Changes

Several research firms have commented on HRZN. Maxim Group lowered their target price on shares of Horizon Technology Finance from $10.00 to $7.50 and set a "buy" rating on the stock in a research note on Monday, August 11th. UBS Group raised their target price on shares of Horizon Technology Finance from $7.50 to $8.00 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $7.30.

Horizon Technology Finance Company Profile

Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries.

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