Investors Purchase High Volume of Hercules Capital Put Options (NYSE:HTGC)

Hercules Capital, Inc. (NYSE:HTGC) saw unusually large options trading activity on Friday. Investors bought 28,062 put options on the stock. This represents an increase of approximately 1,224% compared to the average volume of 2,119 put options.

Insider Buying and Selling at Hercules Capital

In related news, Director Robert P. Badavas bought 5,000 shares of the business’s stock in a transaction on Tuesday, February 24th. The shares were bought at an average cost of $15.01 per share, for a total transaction of $75,050.00. Following the completion of the acquisition, the director directly owned 117,073 shares in the company, valued at approximately $1,757,265.73. This represents a 4.46% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Gayle A. Crowell purchased 6,600 shares of Hercules Capital stock in a transaction on Monday, February 23rd. The stock was bought at an average cost of $15.20 per share, with a total value of $100,320.00. Following the transaction, the director directly owned 87,458 shares of the company’s stock, valued at approximately $1,329,361.60. The trade was a 8.16% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased 71,065 shares of company stock worth $1,093,012 in the last ninety days. Company insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Hercules Capital

Institutional investors have recently added to or reduced their stakes in the company. Marshall Wace LLP bought a new stake in shares of Hercules Capital during the third quarter worth approximately $11,199,000. Qube Research & Technologies Ltd raised its position in shares of Hercules Capital by 425.6% during 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 acquiring an additional 469,989 shares during the last quarter. UBS Group AG lifted its stake in shares of Hercules Capital by 26.8% in the 4th 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 position in shares of Hercules Capital by 34.5% in the 4th quarter. Muzinich & Co. Inc. now owns 1,335,787 shares of the financial services provider’s stock worth $25,140,000 after purchasing an additional 342,967 shares during the last quarter. Finally, HRT Financial LP grew its stake in shares of 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 purchasing an additional 280,198 shares during the period. 19.69% of the stock is owned by institutional investors.

Hercules Capital Stock Performance

Shares of NYSE HTGC traded down $1.10 during trading hours on Friday, reaching $14.33. The stock had a trading volume of 6,268,565 shares, compared to its average volume of 2,526,279. The company has a market cap of $2.63 billion, a price-to-earnings ratio of 7.83 and a beta of 0.84. Hercules Capital has a twelve month low of $14.16 and a twelve month high of $21.14. The business’s fifty day moving average is $17.73 and its two-hundred day moving average is $18.21. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.48 and a quick ratio of 1.48.

Hercules Capital (NYSE:HTGC) last announced its quarterly earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.48. The firm had revenue of $133.25 million for the quarter, compared to analyst estimates of $141.57 million. Hercules Capital had a net margin of 63.80% and a return on equity of 15.97%. During the same quarter in the previous year, the firm posted $0.49 EPS. As a group, research analysts expect that Hercules Capital will post 1.96 EPS for the current year.

Hercules Capital Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 25th will be paid a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Wednesday, February 25th. Hercules Capital’s payout ratio is currently 87.43%.

Analyst Upgrades and Downgrades

HTGC has been the subject of several recent analyst reports. Lucid Cap Mkts upgraded Hercules Capital to a “strong-buy” rating in a research note on Monday, December 15th. Keefe, Bruyette & Woods reduced their price objective on Hercules Capital from $20.00 to $19.00 and set an “outperform” rating for the company in a research report on Friday, February 13th. Wells Fargo & Company lowered their price objective on shares of Hercules Capital from $18.00 to $17.00 and set an “overweight” rating on the stock in a research note on Friday, February 13th. Capital One Financial set a $19.75 target price on shares of Hercules Capital in a research note on Monday, December 15th. Finally, Wall Street Zen downgraded shares of Hercules Capital from a “buy” rating to a “hold” rating in a report on Saturday, December 20th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, Hercules Capital currently has an average rating of “Moderate Buy” and a consensus price target of $19.29.

Hercules Capital Company Profile

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.