Hercules Capital (NYSE:HTGC) Stock Crosses Above 200 Day Moving Average - Time to Sell?

Key Points

• Hercules Capital shares crossed above their 200-day moving average, reaching $16.34 versus the $16.21 average, before last trading at $16.076.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $18.89, despite one downgrade and a reduced target from Ladenburg.
• The company reported quarterly EPS of $0.50, exceeding estimates, and increased its quarterly dividend to $0.40, implying a 10.0% annualized yield and a 79.6% payout ratio.

Hercules Capital, Inc. (NYSE:HTGC - Get Free Report)'s share price crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $16.21 and traded as high as $16.34. Hercules Capital shares last traded at $16.0760, with a volume of 1,528,471 shares trading hands.

Analyst Ratings Changes

A number of brokerages recently issued reports on HTGC. Weiss Ratings lowered Hercules Capital from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, October 13th. LADENBURG THALM/SH SH reduced their price objective on Hercules Capital from $21.00 to $20.00 and set a "buy" rating on the stock in a report on Friday, July 31st. Finally, UBS Group raised Hercules Capital from a "neutral" rating to a "buy" rating and lifted their target price for the company from $15.50 to $18.50 in a research report on Tuesday, September 1st. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Hercules Capital currently has a consensus rating of "Moderate Buy" and an average target price of $18.89.

Hercules Capital Price Performance

The firm has a 50-day simple moving average of $17.07 and a 200-day simple moving average of $16.21. The firm has a market cap of $3.01 billion, a P/E ratio of 8.00 and a beta of 0.82. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.03.

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

Hercules Capital Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 18th. Stockholders of record on Tuesday, August 11th were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date of this dividend was Tuesday, August 11th. This is an increase from Hercules Capital's previous quarterly dividend of $0.07. Hercules Capital's payout ratio is presently 79.60%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of HTGC. Investment Research Partners LLC boosted its stake in Hercules Capital by 18.8% in the 3rd quarter. Investment Research Partners LLC now owns 30,613 shares of the financial services provider's stock worth $515,000 after purchasing an additional 4,836 shares in the last quarter. Secure Asset Management LLC grew its position in Hercules Capital by 5.8% during the 3rd quarter. Secure Asset Management LLC now owns 82,333 shares of the financial services provider's stock worth $1,384,000 after purchasing an additional 4,496 shares during the last quarter. ShoreHaven Wealth Partners LLC acquired a new position in Hercules Capital during the 3rd quarter valued at approximately $269,000. Avail Investment Partners LLC increased its stake in Hercules Capital by 23.6% during the 3rd quarter. Avail Investment Partners LLC now owns 15,235 shares of the financial services provider's stock valued at $256,000 after purchasing an additional 2,910 shares in the last quarter. Finally, KFG Wealth Management LLC increased its stake in Hercules Capital by 4.5% during the 3rd quarter. KFG Wealth Management LLC now owns 14,981 shares of the financial services provider's stock valued at $252,000 after purchasing an additional 646 shares in the last quarter. Institutional investors own 19.69% of the company's stock.

About Hercules Capital

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.