Horizon Technology Finance (NASDAQ:HRZN) Stock Price Breaks Above 200-Day Moving Average - Here's What Happened

Key Points

• Horizon Technology Finance shares rose above their 200-day moving average, reaching $4.63 before closing at $4.59, compared with the $4.47 average.
• Analyst sentiment remains cautious, with an overall “Hold” rating and an average price target of $5.00; one analyst rates the stock a Buy, five rate it Hold, and one rates it Sell.
• The company declared a monthly dividend of $0.06 per share, representing a $0.72 annualized payout and a 15.7% yield, though its 200% payout ratio is high. Recent quarterly EPS of $0.11 missed the $0.13 consensus estimate.

Horizon Technology Finance Corporation (NASDAQ:HRZN - Get Free Report)'s stock price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $4.47 and traded as high as $4.63. Horizon Technology Finance shares last traded at $4.59, with a volume of 356,764 shares traded.

Analysts Set New Price Targets

Several research analysts recently issued reports on the stock. Weiss Ratings lowered shares of Horizon Technology Finance from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, August 19th. Keefe, Bruyette & Woods cut their price objective on shares of Horizon Technology Finance from $5.00 to $4.50 and set a "market perform" rating on the stock in a report on Friday, August 21st. UBS Group raised their target price on shares of Horizon Technology Finance from $4.25 to $4.50 and gave the company a "neutral" rating in a research note on Tuesday, September 1st. Compass Point started coverage on Horizon Technology Finance in a research report on Thursday, August 27th. They issued a "buy" rating and a $5.50 price target on the stock. Finally, Oppenheimer cut their price target on Horizon Technology Finance from $6.00 to $5.00 and set a "market perform" rating on the stock in a research note on Friday, August 7th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $5.00.

Horizon Technology Finance Stock Performance

The firm has a 50-day moving average price of $4.70 and a 200-day moving average price of $4.47. The stock has a market cap of $307.67 million, a PE ratio of 12.75 and a beta of 0.99.

Horizon Technology Finance (NASDAQ:HRZN - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The investment management company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.02). The firm had revenue of $25.05 million for the quarter, compared to analysts' expectations of $25.22 million. Horizon Technology Finance had a net margin of 5.27% and a return on equity of 11.15%. As a group, sell-side analysts anticipate that Horizon Technology Finance Corporation will post 0.63 EPS for the current fiscal year.

Horizon Technology Finance Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, November 17th will be given a dividend of $0.06 per share. The ex-dividend date of this dividend is Tuesday, November 17th. This represents a $0.72 annualized dividend and a dividend yield of 15.7%. Horizon Technology Finance's dividend payout ratio (DPR) is 200.00%.

Hedge Funds Weigh In On Horizon Technology Finance

Hedge funds have recently added to or reduced their stakes in the company. NewEdge Advisors LLC purchased a new stake in Horizon Technology Finance during the 2nd quarter valued at $101,000. Squarepoint Ops LLC purchased a new position in shares of Horizon Technology Finance in the second quarter worth $93,000. Baird Financial Group Inc. purchased a new position in shares of Horizon Technology Finance in the second quarter worth $148,000. Corient Private Wealth LP bought a new position in shares of Horizon Technology Finance during the second quarter valued at $422,000. Finally, HighTower Advisors LLC bought a new position in shares of Horizon Technology Finance during the second quarter valued at $61,000. 4.94% of the stock is currently owned by hedge funds and other institutional investors.

Horizon Technology Finance Company Profile

Horizon Technology Finance Corporation NASDAQ: HRZN is a specialty finance company that operates as a business development company. It provides secured venture loans and other forms of debt financing to emerging-growth companies backed by venture capital or private equity investors.

The company primarily serves businesses in the technology, life sciences, healthcare information technology, and sustainability sectors. Its financing solutions may support product development, capital expenditures, acquisitions, working capital, and other corporate needs.

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