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

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. Investors of record on Wednesday, September 17th will be paid a dividend of 0.11 per share by the investment management company on Wednesday, October 15th. This represents a c) annualized dividend and a dividend yield of 19.9%. The ex-dividend date of this dividend is Wednesday, September 17th.

Horizon Technology Finance has a dividend 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. Equities 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 Price Performance

NASDAQ:HRZN traded down $0.07 during mid-day trading on Friday, reaching $6.65. 322,593 shares of the company's stock traded hands, compared to its average volume of 492,431. Horizon Technology Finance has a 12-month low of $6.56 and a 12-month high of $10.77. The firm has a market capitalization of $282.74 million, a price-to-earnings ratio of -5.78 and a beta of 0.99. The company has a 50 day moving average price of $7.37 and a 200-day moving average price of $7.84.

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

About Horizon Technology Finance

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.