Hercules Capital (NYSE:HTGC) Share Price Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• Hercules Capital shares crossed above their 200-day moving average, reaching $16.75 before last trading at $16.5680, although they remained below the 50-day average of $17.12.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $18.89; UBS upgraded the stock to “Buy,” while Ladenburg reduced its target to $20.
• The company reported quarterly EPS of $0.50, beating estimates, and increased its quarterly dividend to $0.40, representing a 9.7% annualized yield and a 79.6% payout ratio.

Shares of Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $16.07 and traded as high as $16.75. Hercules Capital shares last traded at $16.5680, with a volume of 972,241 shares.

Analyst Ratings Changes

A number of brokerages have commented on HTGC. LADENBURG THALM/SH SH reduced their price objective on Hercules Capital from $21.00 to $20.00 and set a "buy" rating for the company in a research note on Friday, July 31st. UBS Group raised Hercules Capital from a "neutral" rating to a "buy" rating and upped their target price for the stock from $15.50 to $18.50 in a research report on Tuesday, September 1st. Finally, Weiss Ratings upgraded Hercules Capital from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, September 28th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $18.89.

Hercules Capital Trading Down 0.7%

The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 1.03. The company has a market capitalization of $3.10 billion, a P/E ratio of 8.24 and a beta of 0.82. The firm's 50-day moving average price is $17.12 and its 200 day moving average price is $16.07.

Hercules Capital (NYSE:HTGC - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The financial services provider reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.02. The business had revenue of $134.41 million for the quarter, compared to analysts' expectations of $146.71 million. Hercules Capital had a net margin of 67.68% and a return on equity of 16.01%. The firm's revenue for the quarter was up 8.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.50 EPS. As a group, equities research analysts predict that Hercules Capital, Inc. will post 1.95 earnings per share for the current year.

Hercules Capital Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 18th. Stockholders of record on Tuesday, August 11th were issued a $0.40 dividend. This is a boost from Hercules Capital's previous quarterly dividend of $0.07. This represents a $1.60 dividend on an annualized basis and a dividend yield of 9.7%. The ex-dividend date was Tuesday, August 11th. Hercules Capital's dividend payout ratio is 79.60%.

Institutional Investors Weigh In On Hercules Capital

Several institutional investors have recently bought and sold shares of HTGC. Annis Gardner Whiting Capital Advisors LLC lifted its position in shares of Hercules Capital by 17.1% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 7,090 shares of the financial services provider's stock worth $105,000 after buying an additional 1,035 shares in the last quarter. North Star Investment Management Corp. grew its holdings in shares of Hercules Capital by 2.3% in the first quarter. North Star Investment Management Corp. now owns 49,061 shares of the financial services provider's stock valued at $725,000 after acquiring an additional 1,096 shares in the last quarter. Centaurus Financial Inc. grew its holdings in shares of Hercules Capital by 1.0% in the first quarter. Centaurus Financial Inc. now owns 107,492 shares of the financial services provider's stock valued at $1,588,000 after acquiring an additional 1,098 shares in the last quarter. Sequoia Financial Advisors LLC increased its position in shares of Hercules Capital by 15.6% during the second quarter. Sequoia Financial Advisors LLC now owns 12,336 shares of the financial services provider's stock valued at $195,000 after acquiring an additional 1,669 shares during the last quarter. Finally, Burk Holdings LLC purchased a new stake in shares of Hercules Capital during the second quarter valued at approximately $28,000. Institutional investors own 19.69% of the company's stock.

Hercules Capital Company Profile

Hercules Capital, Inc is a specialty finance company and business development company that provides financing to venture capital- and private equity-backed companies. Founded in 2003, the company was formerly known as Hercules Technology Growth Capital and focuses on supporting businesses in technology, life sciences, and other innovation-oriented industries.

Hercules Capital offers secured and unsecured venture debt, growth capital, equipment financing, working capital facilities, acquisition financing, and recapitalization solutions.

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