Horizon Technology Finance (NASDAQ:HRZN) Releases Earnings Results, Misses Estimates By $0.13 EPS

Key Points

• Horizon reported Q earnings of $0.06 EPS, missing the consensus of $0.19 by $0.13, and reported revenue of ($6.19) million versus an expected $21.09 million, leaving a negative net margin of 2.77% despite a positive ROE of 14.52%.
• The firm announced a monthly dividend of $0.06 payable June 16 (record/ex-dividend date May 18), implying an annualized yield of about 17.0% while the dividend payout ratio is shown as -450%.
• HRZN traded around $4.23 with a market cap of $202.2M (below its 50- and 200-day averages), and analyst sentiment is weak—average rating "Reduce" with an average price target of $6.10 after several downgrades.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) posted its earnings results on Tuesday. The investment management company reported $0.06 EPS for the quarter, missing analysts' consensus estimates of $0.19 by ($0.13), FiscalAI reports. The firm had revenue of ($6.19) million for the quarter, compared to the consensus estimate of $21.09 million. Horizon Technology Finance had a negative net margin of 2.77% and a positive return on equity of 14.52%.

Horizon Technology Finance Stock Performance

HRZN stock traded up $0.05 during midday trading on Tuesday, reaching $4.23. The company's stock had a trading volume of 957,592 shares, compared to its average volume of 1,027,721. The stock has a fifty day simple moving average of $4.55 and a two-hundred day simple moving average of $5.82. Horizon Technology Finance has a 1 year low of $3.80 and a 1 year high of $8.46. The firm has a market capitalization of $202.24 million, a price-to-earnings ratio of -26.44 and a beta of 0.99.

Horizon Technology Finance Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Monday, May 18th will be paid a $0.06 dividend. The ex-dividend date is Monday, May 18th. This represents a c) dividend on an annualized basis and a yield of 17.0%. Horizon Technology Finance's dividend payout ratio (DPR) is presently -450.00%.

Institutional Trading of Horizon Technology Finance

A number of hedge funds and other institutional investors have recently bought and sold shares of HRZN. Tower Research Capital LLC TRC purchased a new stake in Horizon Technology Finance in the second quarter worth $60,000. HRT Financial LP purchased a new stake in Horizon Technology Finance in the fourth quarter worth $77,000. Marshall Wace LLP purchased a new stake in Horizon Technology Finance in the second quarter worth $103,000. Virtu Financial LLC purchased a new stake in Horizon Technology Finance in the third quarter worth $119,000. Finally, BNP Paribas Financial Markets purchased a new stake in Horizon Technology Finance in the second quarter worth $122,000. Hedge funds and other institutional investors own 4.94% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on HRZN shares. Zacks Research downgraded Horizon Technology Finance from a "hold" rating to a "strong sell" rating in a research report on Thursday, March 5th. B. Riley Financial lowered their target price on Horizon Technology Finance from $7.00 to $5.50 and set a "neutral" rating for the company in a research report on Friday, March 6th. Oppenheimer lowered their target price on Horizon Technology Finance from $7.00 to $6.00 and set a "market perform" rating for the company in a research report on Tuesday, March 24th. Keefe, Bruyette & Woods upgraded Horizon Technology Finance from an "underperform" rating to a "market perform" rating and set a $5.00 target price for the company in a research report on Thursday, March 5th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Horizon Technology Finance in a research report on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Horizon Technology Finance 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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