Hercules Capital, Inc. (NYSE:HTGC) Sees Significant Growth in Short Interest

Hercules Capital, Inc. (NYSE:HTGC) was the recipient of a large growth in short interest during the month of February. As of February 27th, there was short interest totaling 11,895,383 shares, a growth of 46.7% from the February 12th total of 8,110,923 shares. Based on an average daily trading volume, of 4,979,228 shares, the short-interest ratio is currently 2.4 days. Approximately 6.6% of the company’s shares are sold short. Approximately 6.6% of the company’s shares are sold short. Based on an average daily trading volume, of 4,979,228 shares, the short-interest ratio is currently 2.4 days.

Insider Buying and Selling

In other news, Director Robert P. Badavas bought 5,000 shares of the firm’s stock in a transaction on Friday, February 27th. The stock was acquired at an average price of $14.27 per share, with a total value of $71,350.00. Following the transaction, the director owned 122,073 shares of the company’s stock, valued at $1,741,981.71. This trade represents a 4.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Thomas J. Fallon purchased 20,000 shares of the stock in a transaction on Friday, February 27th. The shares were purchased at an average price of $14.20 per share, with a total value of $284,000.00. Following the acquisition, the director owned 150,369 shares in the company, valued at approximately $2,135,239.80. The trade was a 15.34% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have acquired 117,015 shares of company stock valued at $1,749,620. Corporate insiders own 1.80% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Hercules Capital during the 4th quarter worth approximately $27,000. Caitlin John LLC purchased a new position in shares of Hercules Capital during the third quarter valued at approximately $29,000. Cornerstone Planning Group LLC purchased a new position in shares of Hercules Capital during the fourth quarter valued at approximately $29,000. Financial Consulate Inc. bought a new stake in Hercules Capital during the third quarter worth $35,000. Finally, Northwestern Mutual Wealth Management Co. raised its position in Hercules Capital by 113.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,884 shares of the financial services provider’s stock valued at $35,000 after buying an additional 1,000 shares during the last quarter. Institutional investors and hedge funds own 19.69% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on HTGC shares. Lucid Cap Mkts raised shares of Hercules Capital to a “strong-buy” rating in a research note on Monday, December 15th. Keefe, Bruyette & Woods decreased their price target on Hercules Capital from $20.00 to $19.00 and set an “outperform” rating for the company in a report on Friday, February 13th. Wells Fargo & Company lowered their price objective on Hercules Capital from $18.00 to $17.00 and set an “overweight” rating for the company in a research report on Friday, February 13th. UBS Group cut their target price on Hercules Capital from $19.50 to $15.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Wall Street Zen cut Hercules Capital from a “buy” rating to a “hold” rating in a research note 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 given a Hold rating to the company. Based on data from MarketBeat, Hercules Capital currently has a consensus rating of “Moderate Buy” and a consensus target price of $18.71.

Hercules Capital Price Performance

Shares of NYSE HTGC opened at $14.05 on Friday. The firm has a market capitalization of $2.58 billion, a P/E ratio of 7.67 and a beta of 0.87. The firm’s 50-day moving average price is $16.82 and its 200-day moving average price is $17.85. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 1.03. Hercules Capital has a 1-year low of $13.77 and a 1-year high of $19.67.

Hercules Capital (NYSE:HTGC) last issued its earnings results on Thursday, February 12th. The financial services provider reported $0.48 EPS for the quarter, meeting analysts’ consensus estimates of $0.48. The business had revenue of $133.25 million during the quarter, compared to analyst estimates 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 previous year, the company posted $0.49 EPS. Equities research analysts anticipate that Hercules Capital will post 1.96 earnings per share for the current fiscal year.

Hercules Capital Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 4th. Investors of record on Wednesday, February 25th were issued a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Wednesday, February 25th. Hercules Capital’s dividend payout ratio (DPR) is currently 87.43%.

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.