Hercules Capital Inc (NYSE:HTGC) Hits New 12-Month Low Following Analyst Downgrade

Hercules Capital, Inc. (NYSE: HTGC – Get a rating) shares hit a new 52-week low on Monday after Piper Sandler lowered its price target on the stock from $16.00 to $13.00. Piper Sandler currently has a neutral rating on the title. Hercules Capital traded as low as $11.22 and last traded at $11.22, with volume traded at 3165 shares. The stock previously closed at $11.58.

Other research analysts have also released reports on the stock. StockNews.com downgraded shares of Hercules Capital from a “hold” rating to a “sell” rating in a Monday, June 20 research note. JMP Securities cut its price target on Hercules Capital shares from $19.00 to $18.00 and set a “market outperformance” rating on the stock in a Monday, Aug. 1 research report. Oppenheimer downgraded shares of Hercules Capital from an “outperform” rating to a “market performer” rating and cut his price target for the company from $18.00 to $15.00 in a report of research from Friday, July 29. TheStreet downgraded shares of Hercules Capital from a “b” rating to a “c-” rating in a Monday, July 11 research report. Finally, Compass Point lowered its price target on Hercules Capital shares to $15.75 in a Tuesday, August 9 report. One analyst rated the stock with a sell rating, four issued a hold rating and four assigned the company’s stock a buy rating. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $17.06.

Institutional investors weigh on Hercules Capital

A number of institutional investors and hedge funds have been buying and selling stocks recently. BDO Wealth Advisors LLC increased its holdings of Hercules Capital shares by 76.4% in the second quarter. BDO Wealth Advisors LLC now owns 2,217 shares of the financial services provider valued at $30,000 after buying an additional 960 shares in the last quarter. Joseph P. Lucia & Associates LLC acquired a new position in shares of Hercules Capital during the first quarter worth approximately $57,000. Prospera Financial Services Inc acquired a new position in Hercules Capital during the first quarter worth approximately $59,000. Orion Capital Management LLC increased its position in Hercules Capital by 33.3% during the second quarter. Orion Capital Management LLC now owns 4,000 shares of the financial services provider worth $54,000 after purchasing an additional 1,000 shares during the period. Finally, SeaCrest Wealth Management LLC acquired a new equity stake in Hercules Capital in the second quarter valued at approximately $57,000. 23.79% of the shares are held by hedge funds and other institutional investors.

Hercules share down 3.5%

The company’s 50-day moving average price is $14.31 and its 200-day moving average price is $15.16. The company has a market capitalization of $1.42 billion, a price-earnings ratio of 105.28 and a beta of 1.38. The company has a debt ratio of 1.13, a current ratio of 3.84 and a quick ratio of 3.84.

Hercules Capital (NYSE: HTGC – Get a rating) last released its quarterly results on Thursday, July 28. The financial services provider reported EPS of $0.32 for the quarter, missing the consensus estimate of $0.33 per ($0.01). The company posted revenue of $72.12 million in the quarter, versus analyst estimates of $72.41 million. Hercules Capital posted a net margin of 4.86% and a return on equity of 11.63%. The company’s revenue for the quarter increased 3.7% compared to the same quarter last year. In the same quarter of the previous year, the company had earned earnings per share of $0.32. Sell-side analysts expect Hercules Capital, Inc. to post EPS of 1.35 for the current year.

Hercules Capital Increases Its Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 16. Shareholders of record on Tuesday August 9 received a dividend of $0.50. The ex-dividend date was Monday, August 8. This is a positive change from Hercules Capital’s previous quarterly dividend of $0.33. This represents an annualized dividend of $2.00 and a dividend yield of 17.89%. Hercules Capital’s dividend payout ratio is currently 1,272.84%.

About Hercules Capital

(Get a rating)

Hercules Capital, Inc is a business development company. The company specializing in the provision of venture debt, debt, senior secured loans and growth capital to private companies backed by venture capital at all stages of development, from startups to the phase of expansion, including some publicly traded companies and special opportunities for lower-middle-market companies that need additional capital to fund acquisitions, recapitalizations and refinancing of early-stage companies.

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