Hercules Capital (NYSE:HTGC) Share Price Passes Above 200 Day Moving Average – What’s Next?

Hercules Capital, Inc. (NYSE:HTGC)’s stock price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $15.66 and traded as high as $16.66. Hercules Capital shares last traded at $16.6150, with a volume of 1,634,547 shares changing hands.

Analysts Set New Price Targets

HTGC has been the topic of a number of recent research reports. LADENBURG THALM/SH SH decreased their price objective on Hercules Capital from $21.00 to $20.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Citizens Jmp dropped their target price on shares of Hercules Capital from $24.00 to $22.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 22nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Hercules Capital in a research report on Wednesday, June 17th. UBS Group lifted their target price on Hercules Capital from $15.00 to $15.50 and gave the company a “neutral” rating in a research report on Monday, May 18th. Finally, Piper Sandler lifted their price objective on shares of Hercules Capital from $16.50 to $17.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Hercules Capital presently has an average rating of “Moderate Buy” and an average price target of $18.46.

Hercules Capital Stock Performance

The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.37 and a current ratio of 1.37. The firm’s 50 day simple moving average is $16.07 and its 200 day simple moving average is $15.65. The firm has a market capitalization of $3.19 billion, a price-to-earnings ratio of 8.48 and a beta of 0.79.

Hercules Capital (NYSE:HTGC) last announced its quarterly earnings results on Thursday, July 30th. The financial services provider reported $0.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.48 by $0.02. Hercules Capital had a return on equity of 16.01% and a net margin of 67.68%.The company had revenue of $134.41 million during the quarter, compared to the consensus estimate of $146.71 million. During the same period in the previous year, the company posted $0.50 earnings per share. Hercules Capital’s revenue for the quarter was up 8.4% on a year-over-year basis. Sell-side analysts forecast that Hercules Capital, Inc. will post 1.95 earnings per share for the current fiscal year.

Hercules Capital Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 18th. Stockholders of record on Tuesday, August 11th were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 9.4%. This is a boost from Hercules Capital’s previous quarterly dividend of $0.07. The ex-dividend date was Tuesday, August 11th. Hercules Capital’s dividend payout ratio (DPR) is presently 79.60%.

Institutional Investors Weigh In On Hercules Capital

Several institutional investors have recently bought and sold shares of the company. Integrated Wealth Concepts LLC grew its holdings in shares of Hercules Capital by 5.9% during the first quarter. Integrated Wealth Concepts LLC now owns 17,241 shares of the financial services provider’s stock worth $331,000 after buying an additional 959 shares in the last quarter. Empowered Funds LLC lifted its stake in shares of Hercules Capital by 85.9% in the first quarter. Empowered Funds LLC now owns 22,854 shares of the financial services provider’s stock worth $439,000 after buying an additional 10,559 shares in the last quarter. Focus Partners Wealth boosted its position in Hercules Capital by 26.0% during the first quarter. Focus Partners Wealth now owns 15,747 shares of the financial services provider’s stock worth $302,000 after acquiring an additional 3,250 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Hercules Capital by 81.8% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,780 shares of the financial services provider’s stock valued at $87,000 after acquiring an additional 2,151 shares in the last quarter. Finally, Invesco Ltd. grew its stake in Hercules Capital by 1.6% during the 2nd quarter. Invesco Ltd. now owns 78,951 shares of the financial services provider’s stock valued at $1,443,000 after acquiring an additional 1,252 shares in the last quarter. 19.69% of the stock is currently owned by institutional investors and hedge funds.

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.