Keefe, Bruyette & Woods Cuts Hercules Capital (NYSE:HTGC) Price Target to $19.00

Hercules Capital (NYSE:HTGC) had its price target cut by Keefe, Bruyette & Woods from $20.00 to $19.00 in a report issued on Friday,Benzinga reports. They currently have an outperform rating on the financial services provider’s stock.

HTGC has been the topic of a number of other reports. Weiss Ratings restated a “buy (b-)” rating on shares of Hercules Capital in a research report on Wednesday, January 28th. Wells Fargo & Company dropped their price objective on Hercules Capital from $18.00 to $17.00 and set an “overweight” rating on the stock in a report on Friday. Wall Street Zen downgraded Hercules Capital from a “buy” rating to a “hold” rating in a research note on Saturday, December 20th. Piper Sandler lowered Hercules Capital from an “overweight” rating to a “neutral” rating and decreased their target price for the company from $20.50 to $17.50 in a research report on Friday. Finally, Lucid Cap Mkts raised shares of Hercules Capital to a “strong-buy” rating in a report on Monday, December 15th. One research 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 company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $19.39.

Hercules Capital Price Performance

NYSE:HTGC opened at $15.61 on Friday. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.48 and a quick ratio of 1.48. The company has a 50 day moving average price of $18.33 and a 200-day moving average price of $18.44. Hercules Capital has a 1-year low of $15.40 and a 1-year high of $22.04. The firm has a market cap of $2.87 billion, a price-to-earnings ratio of 8.53 and a beta of 0.84.

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, hitting analysts’ consensus estimates of $0.48. Hercules Capital had a net margin of 63.80% and a return on equity of 15.97%. The firm had revenue of $133.25 million for the quarter, compared to the consensus estimate of $141.57 million. During the same period in the prior year, the firm posted $0.49 earnings per share. Equities research analysts forecast that Hercules Capital will post 1.96 EPS for the current year.

Hercules Capital Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Investors of record on Wednesday, February 25th will be given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Wednesday, February 25th. Hercules Capital’s payout ratio is presently 87.43%.

Institutional Investors Weigh In On Hercules Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in HTGC. CWM LLC raised its position in shares of 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 buying an additional 612 shares during the last quarter. Assetmark Inc. grew its stake in 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 acquiring an additional 879 shares in the last quarter. GHP Investment Advisors Inc. purchased a new stake in Hercules Capital during the 2nd quarter valued at about $27,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in Hercules Capital in the 4th quarter valued at about $27,000. Finally, Caitlin John LLC purchased a new position in Hercules Capital in the 3rd quarter worth approximately $29,000. Institutional investors and hedge funds own 19.69% of the company’s stock.

Hercules Capital News Roundup

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.