Hercules Capital (NYSE:HTGC) Sets New 52-Week Low Following Analyst Downgrade

Hercules Capital, Inc. (NYSE:HTGC)’s share price hit a new 52-week low on Friday after Keefe, Bruyette & Woods lowered their price target on the stock from $20.00 to $19.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Hercules Capital traded as low as $15.44 and last traded at $15.65, with a volume of 1717057 shares trading hands. The stock had previously closed at $16.60.

A number of other equities analysts have also recently weighed in on the company. Wall Street Zen cut Hercules Capital from a “buy” rating to a “hold” rating in a research note on Saturday, December 20th. Lucid Cap Mkts raised shares of Hercules Capital to a “strong-buy” rating in a research report on Monday, December 15th. Wells Fargo & Company cut their price target on shares of Hercules Capital from $18.00 to $17.00 and set an “overweight” rating on the stock in a report on Friday. Capital One Financial set a $19.75 price objective on shares of Hercules Capital in a research note on Monday, December 15th. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.39.

More Hercules Capital News

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

Institutional Investors Weigh In On Hercules Capital

A number of institutional investors have recently modified their holdings of HTGC. CWM LLC grew its stake in Hercules Capital by 79.6% in the second quarter. CWM LLC now owns 1,381 shares of the financial services provider’s stock valued at $25,000 after purchasing an additional 612 shares in the last quarter. Assetmark Inc. lifted its holdings in shares of Hercules Capital by 173.4% during the 2nd quarter. Assetmark Inc. now owns 1,386 shares of the financial services provider’s stock valued at $25,000 after buying an additional 879 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in shares of Hercules Capital in the 4th quarter valued at approximately $27,000. GHP Investment Advisors Inc. acquired a new position in Hercules Capital in the second quarter worth approximately $27,000. Finally, Caitlin John LLC bought a new position in Hercules Capital during the third quarter valued at approximately $29,000. Institutional investors and hedge funds own 19.69% of the company’s stock.

Hercules Capital Price Performance

The company has a debt-to-equity ratio of 0.98, a current ratio of 1.65 and a quick ratio of 1.65. The stock has a market capitalization of $2.84 billion, a price-to-earnings ratio of 8.53 and a beta of 0.84. The stock’s 50 day simple moving average is $18.33 and its 200-day simple moving average is $18.45.

Hercules Capital (NYSE:HTGC) last released its quarterly earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.48. The business had revenue of $133.25 million for the quarter, compared to the consensus estimate of $141.57 million. Hercules Capital had a net margin of 63.80% and a return on equity of 16.17%. During the same quarter last year, the firm earned $0.49 EPS. On average, analysts expect that Hercules Capital, Inc. will post 1.96 EPS for the current fiscal year.

Hercules Capital Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 25th will be given a $0.07 dividend. The ex-dividend date of this dividend is Wednesday, February 25th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.8%. Hercules Capital’s payout ratio is currently 93.02%.

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.