Hercules Capital (NYSE:HTGC) Director Purchases $98,208.45 in Stock

Hercules Capital, Inc. (NYSE:HTGC) Director Nikos Theodosopoulos bought 6,165 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The stock was bought at an average cost of $15.93 per share, for a total transaction of $98,208.45. Following the completion of the transaction, the director directly owned 18,923 shares in the company, valued at approximately $301,443.39. The trade was a 48.32% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link.

Hercules Capital Stock Down 1.4%

Hercules Capital stock opened at $15.43 on Friday. The stock has a 50-day simple moving average of $18.01 and a 200-day simple moving average of $18.32. The company has a market capitalization of $2.84 billion, a P/E ratio of 8.43 and a beta of 0.84. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.48 and a current ratio of 1.48. Hercules Capital, Inc. has a fifty-two week low of $15.26 and a fifty-two week high of $21.97.

Hercules Capital (NYSE:HTGC) last posted its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.48 earnings per share for the quarter, meeting the consensus estimate of $0.48. The business had revenue of $133.25 million during the quarter, compared to the consensus estimate of $141.57 million. Hercules Capital had a return on equity of 15.97% and a net margin of 63.80%.During the same period in the prior year, the company earned $0.49 earnings per share. Equities research analysts expect that Hercules Capital, Inc. will post 1.96 earnings per share for the current year.

Hercules Capital Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 25th will be given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Wednesday, February 25th. Hercules Capital’s dividend payout ratio (DPR) is presently 87.43%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of HTGC. Marshall Wace LLP purchased a new position in Hercules Capital in the third quarter worth $11,199,000. Qube Research & Technologies Ltd increased its holdings in shares of Hercules Capital by 425.6% in the 2nd quarter. Qube Research & Technologies Ltd now owns 580,414 shares of the financial services provider’s stock valued at $10,610,000 after purchasing an additional 469,989 shares in the last quarter. UBS Group AG lifted its stake in shares of Hercules Capital by 26.8% in the fourth quarter. UBS Group AG now owns 1,671,860 shares of the financial services provider’s stock valued at $31,464,000 after purchasing an additional 353,092 shares during the period. Muzinich & Co. Inc. boosted its holdings in Hercules Capital by 34.5% during the fourth quarter. Muzinich & Co. Inc. now owns 1,335,787 shares of the financial services provider’s stock worth $25,140,000 after buying an additional 342,967 shares in the last quarter. Finally, HRT Financial LP grew its position in Hercules Capital by 100.9% during the second quarter. HRT Financial LP now owns 558,010 shares of the financial services provider’s stock worth $10,200,000 after buying an additional 280,198 shares during the period. Institutional investors and hedge funds own 19.69% of the company’s stock.

More Hercules Capital News

Here are the key news stories impacting Hercules Capital this week:

• Positive Sentiment: Directors increased personal stakes: two insiders bought shares on Feb. 17 — Thomas J. Fallon purchased 20,000 shares and Nikos Theodosopoulos bought 6,165 shares, signaling management confidence. Thomas J. Fallon SEC filing Nikos Theodosopoulos purchase
• Positive Sentiment: Analyst upgrade/positive take: Seeking Alpha upgraded HTGC from Hold to Buy after a ~16% pullback, arguing the sell-off presents an attractive yield and valuation entry for income investors. Seeking Alpha upgrade
• Positive Sentiment: Management highlights growth: CEO and management emphasized record originations ($1.06B) and portfolio growth on the Q4 call, which supports future earnings potential despite a near-term revenue miss. Q4 earnings call coverage
• Neutral Sentiment: Retail/coverage mention: HTGC appeared on a Yahoo watchlist of “stocks under $50,” a visibility note but not a material catalyst. Watchlist mention
• Neutral Sentiment: Wall Street mix: Brokers maintain a mix of Buy/Outperform ratings but have trimmed price targets recently; consensus still modestly positive but shows reduced near-term upside. Analyst coverage summary
• Negative Sentiment: Q4 misses: Hercules met GAAP EPS but missed revenue and non‑GAAP profit expectations, which likely pressured the shares as investors focused on near‑term payout sustainability. Earnings call coverage
• Negative Sentiment: Dividend reduced: Management announced a quarterly dividend of $0.07 (annualized $0.28, ~1.8% yield) with a high payout ratio (~87%), undermining HTGC’s appeal to income investors and likely contributing to the selloff. MarketBeat dividend & metrics
• Negative Sentiment: Technical and valuation headwinds: HTGC is trading below its 50- and 200-day moving averages and near its 52-week low; combined with leverage (debt/equity ~1.03) this amplifies downside in weak market/sector conditions. MarketBeat stock stats

Analysts Set New Price Targets

HTGC has been the topic of a number of research reports. Wall Street Zen lowered Hercules Capital from a “buy” rating to a “hold” rating in a report on Saturday, December 20th. Piper Sandler downgraded Hercules Capital from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $20.50 to $17.50 in a research note on Friday, February 13th. Wells Fargo & Company dropped their target price on Hercules Capital from $18.00 to $17.00 and set an “overweight” rating on the stock in a report on Friday, February 13th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Hercules Capital in a report on Wednesday, January 28th. Finally, Keefe, Bruyette & Woods dropped their price objective on shares of Hercules Capital from $20.00 to $19.00 and set an “outperform” rating on the stock in a research note on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $19.29.

About Hercules Capital

Hercules Capital, Inc is a specialty finance company organized as a business development company (BDC) that provides tailored debt financing solutions to high‐growth companies. Through its external management structure, Hercules Capital extends senior secured loans, subordinated debt and growth capital designed to support research and development, expansion initiatives and working capital needs. The firm primarily partners with venture capital and private equity sponsors to finance innovative enterprises across various developmental stages.

The company’s investment portfolio is concentrated in technology, life sciences and sustainable and renewable technology sectors, reflecting its focus on industries with strong growth prospects and recurring capital requirements.