Zacks Research Predicts Lower Earnings for Hercules Capital

Hercules Capital, Inc. (NYSE:HTGC - Free Report) - Zacks Research cut their Q2 2025 earnings per share estimates for Hercules Capital in a report issued on Thursday, May 22nd. Zacks Research analyst R. Department now anticipates that the financial services provider will earn $0.47 per share for the quarter, down from their previous forecast of $0.48. The consensus estimate for Hercules Capital's current full-year earnings is $1.96 per share. Zacks Research also issued estimates for Hercules Capital's Q3 2025 earnings at $0.48 EPS, Q2 2026 earnings at $0.49 EPS and Q1 2027 earnings at $0.51 EPS.

Several other research analysts have also recently weighed in on the stock. Piper Sandler decreased their price target on shares of Hercules Capital from $23.00 to $20.00 and set an "overweight" rating on the stock in a report on Tuesday, April 8th. Keefe, Bruyette & Woods decreased their price target on shares of Hercules Capital from $21.50 to $20.50 and set an "outperform" rating on the stock in a report on Tuesday, April 8th. UBS Group decreased their price target on shares of Hercules Capital from $20.00 to $18.00 and set a "neutral" rating on the stock in a report on Thursday, April 17th. Compass Point upped their price target on shares of Hercules Capital from $18.25 to $20.00 and gave the stock a "neutral" rating in a report on Wednesday, February 19th. Finally, Wells Fargo & Company reduced their target price on Hercules Capital from $21.00 to $19.00 and set an "overweight" rating on the stock in a research note on Monday, April 28th. Two analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $19.92.

Hercules Capital Price Performance

Shares of Hercules Capital stock traded down $0.02 during trading on Monday, hitting $17.67. The stock had a trading volume of 1,523,106 shares, compared to its average volume of 1,093,607. The firm has a market cap of $3.10 billion, a price-to-earnings ratio of 10.98 and a beta of 0.97. Hercules Capital has a 12 month low of $15.65 and a 12 month high of $22.04. The business's 50-day moving average is $17.81 and its 200 day moving average is $19.17. The company has a current ratio of 2.72, a quick ratio of 2.72 and a debt-to-equity ratio of 0.89.

Hercules Capital (NYSE:HTGC - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The financial services provider reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.46 by ($0.01). The firm had revenue of $102.10 million during the quarter, compared to the consensus estimate of $125.43 million. Hercules Capital had a return on equity of 17.19% and a net margin of 53.28%. The company's revenue for the quarter was down 1.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.50 EPS.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Ares Management LLC grew its stake in shares of Hercules Capital by 14.3% during the fourth quarter. Ares Management LLC now owns 226,606 shares of the financial services provider's stock valued at $4,553,000 after buying an additional 28,300 shares during the last quarter. Left Brain Wealth Management LLC grew its stake in shares of Hercules Capital by 32.2% during the fourth quarter. Left Brain Wealth Management LLC now owns 275,876 shares of the financial services provider's stock valued at $5,542,000 after buying an additional 67,215 shares during the last quarter. Tectonic Advisors LLC grew its stake in shares of Hercules Capital by 14.0% during the fourth quarter. Tectonic Advisors LLC now owns 493,808 shares of the financial services provider's stock valued at $9,921,000 after buying an additional 60,776 shares during the last quarter. Marshall Wace LLP bought a new position in shares of Hercules Capital during the fourth quarter valued at about $14,871,000. Finally, Magnetar Financial LLC bought a new position in shares of Hercules Capital during the fourth quarter valued at about $324,000. 19.69% of the stock is owned by institutional investors.

Insider Activity at Hercules Capital

In related news, Director Nikos Theodosopoulos acquired 5,999 shares of Hercules Capital stock in a transaction dated Thursday, May 8th. The shares were purchased at an average cost of $17.49 per share, with a total value of $104,922.51. Following the completion of the purchase, the director now owns 11,960 shares of the company's stock, valued at $209,180.40. This represents a 100.64% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.90% of the stock is owned by insiders.

Hercules Capital Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, May 20th. Investors of record on Tuesday, May 13th were paid a $0.40 dividend. The ex-dividend date of this dividend was Tuesday, May 13th. This represents a $1.60 dividend on an annualized basis and a yield of 9.05%. Hercules Capital's dividend payout ratio is presently 120.30%.

About Hercules Capital

Hercules Capital, Inc is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies.