Hercules Capital (NYSE:HTGC) Given New $19.00 Price Target at Keefe, Bruyette & Woods

Hercules Capital (NYSE:HTGC) had its target price lowered by Keefe, Bruyette & Woods from $20.00 to $19.00 in a research note published on Friday,Benzinga reports. The brokerage currently has an outperform rating on the financial services provider’s stock.

Several other equities analysts also recently weighed in on the company. Wall Street Zen downgraded Hercules Capital from a “buy” rating to a “hold” rating in a research report on Saturday, December 20th. Piper Sandler downgraded shares of Hercules Capital from an “overweight” rating to a “neutral” rating and cut their target price for the company from $20.50 to $17.50 in a research note on Friday. Wells Fargo & Company reduced their target price on shares of Hercules Capital from $18.00 to $17.00 and set an “overweight” rating on the stock in a report on Friday. Weiss Ratings reiterated a “buy (b-)” rating on shares of Hercules Capital in a report on Wednesday, January 28th. Finally, Capital One Financial set a $19.75 price objective on shares of Hercules Capital in a research note on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $19.39.

Hercules Capital Stock Performance

Shares of HTGC opened at $15.61 on Friday. Hercules Capital has a 12-month low of $15.40 and a 12-month high of $22.04. The stock has a market cap of $2.84 billion, a P/E ratio of 8.53 and a beta of 0.84. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 0.98. The company has a 50-day moving average of $18.33 and a two-hundred day moving average of $18.45.

Hercules Capital (NYSE:HTGC) last issued its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.48 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.48. Hercules Capital had a net margin of 63.80% and a return on equity of 16.17%. The business had revenue of $133.25 million during the quarter, compared to analysts’ expectations of $141.57 million. During the same period last year, the company posted $0.49 EPS. As a group, research analysts predict that Hercules Capital will post 1.96 EPS for the current fiscal year.

Hercules Capital Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 25th will be issued a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Wednesday, February 25th. Hercules Capital’s dividend payout ratio is presently 93.02%.

Institutional Investors Weigh In On Hercules Capital

A number of institutional investors have recently added to or reduced their stakes in the company. CWM LLC increased its stake in Hercules Capital by 79.6% during the second quarter. CWM LLC now owns 1,381 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 612 shares during the last quarter. Fox Run Management L.L.C. lifted its stake in shares of Hercules Capital by 2.8% in the 4th quarter. Fox Run Management L.L.C. now owns 24,354 shares of the financial services provider’s stock valued at $458,000 after purchasing an additional 657 shares in the last quarter. Centaurus Financial Inc. grew its holdings in shares of Hercules Capital by 1.8% during the 3rd quarter. Centaurus Financial Inc. now owns 37,819 shares of the financial services provider’s stock worth $715,000 after purchasing an additional 675 shares during the period. Allworth Financial LP increased its position in Hercules Capital by 11.4% during the 3rd quarter. Allworth Financial LP now owns 6,652 shares of the financial services provider’s stock worth $126,000 after purchasing an additional 680 shares in the last quarter. Finally, Rockefeller Capital Management L.P. raised its holdings in Hercules Capital by 0.5% in the second quarter. Rockefeller Capital Management L.P. now owns 143,346 shares of the financial services provider’s stock valued at $2,620,000 after buying an additional 697 shares during the period. Hedge funds and other institutional investors own 19.69% of the company’s stock.

Hercules Capital News Summary

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

• Positive Sentiment: Q4 operational strength: originations rose sharply year‑over‑year and management described a strong quarter with record performance and rising investment income — factors that support future yield and portfolio growth. MSN: Q4 originations rise
• Neutral Sentiment: Dividend/debt optionality highlighted: management is weighing a supplemental dividend and the use of new debt against current valuation — a potential shareholder return but with balance‑sheet implications; outcome will be a near‑term catalyst. Yahoo: Dividend and debt considerations
• Negative Sentiment: Analysts cut targets: Keefe, Bruyette & Woods lowered its price target to $19 (still an outperform) and Wells Fargo trimmed its target to $17 while maintaining overweight — downward revisions reduce headline upside and likely pressured the stock. Benzinga: Analyst target cuts
• Negative Sentiment: Earnings nuance — EPS met estimates but revenue missed and expenses rose year‑over‑year; EPS of $0.48 matched consensus but revenue was $133.3M vs. $141.6M expected, and operating costs increased, which dented the headline print. Zacks: Q4 results
• Negative Sentiment: High trading volume and near‑term uncertainty: the stock saw elevated volume on the print and mixed messages on capital allocation (dividend vs. debt), creating selling pressure until the board provides clearer guidance. MarketBeat: Earnings & materials

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.