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

Key Points

• Hercules Capital shares slipped below their 200-day moving average, reaching $15.87 before trading near $16.09; the 200-day average is $16.10.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $18.89, above the recent share price.
• Quarterly EPS of $0.47 matched expectations, but revenue came in below forecasts. The company also cut its quarterly dividend to $0.07 from $0.40.

Hercules Capital, Inc. (NYSE:HTGC - Get Free Report) shares crossed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $16.10 and traded as low as $15.87. Hercules Capital shares last traded at $16.0940, with a volume of 1,658,309 shares trading hands.

Wall Street Analysts Forecast Growth

HTGC has been the topic of a number of analyst reports. LADENBURG THALM/SH SH dropped their price objective on shares of Hercules Capital from $21.00 to $20.00 and set a "buy" rating on the stock in a report on Friday, July 31st. Weiss Ratings upgraded shares of Hercules Capital from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, October 28th. Finally, UBS Group raised Hercules Capital from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $15.50 to $18.50 in a report on Tuesday, September 1st. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Hercules Capital presently has an average rating of "Moderate Buy" and a consensus target price of $18.89.

Hercules Capital Trading Down 1.7%

The business's 50 day moving average is $16.85 and its two-hundred day moving average is $16.10. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 1.10. The firm has a market capitalization of $3.05 billion, a P/E ratio of 8.65 and a beta of 0.82.

Hercules Capital (NYSE:HTGC - Get Free Report) last announced its earnings results on Thursday, October 29th. The financial services provider reported $0.47 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.47. The firm had revenue of $135.69 million during the quarter, compared to analyst estimates of $144.11 million. Hercules Capital had a net margin of 62.84% and a return on equity of 15.72%. During the same quarter in the prior year, the firm posted $0.49 EPS. Analysts expect that Hercules Capital, Inc. will post 1.94 EPS for the current year.

Hercules Capital Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 17th. Stockholders of record on Tuesday, November 10th will be paid a $0.07 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.7%. This is a decrease from Hercules Capital's previous quarterly dividend of $0.40. Hercules Capital's dividend payout ratio (DPR) is currently 86.02%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Burk Holdings LLC acquired a new stake in Hercules Capital in the second quarter worth approximately $28,000. Archer Investment Corp bought a new position in Hercules Capital during the 2nd quarter valued at $32,000. Fifth Third Bancorp bought a new position in Hercules Capital during the 1st quarter valued at $35,000. Fortitude Family Office LLC acquired a new position in shares of Hercules Capital during the 3rd quarter valued at $40,000. Finally, Caitlin John LLC acquired a new position in shares of Hercules Capital during the 2nd quarter valued at $42,000. 19.69% of the stock is currently owned by institutional investors.

About Hercules Capital

Hercules Capital, Inc. is a specialty finance company and business development company that provides financing to venture capital-backed businesses. Its lending focuses primarily on companies in the technology, life sciences and sustainable and renewable technology sectors. The company offers venture debt and growth capital through products such as senior secured loans, equipment financing and working capital facilities. Its financing is designed to support businesses at different stages, including product development, expansion and other growth initiatives.

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