UBS Group Has Lowered Expectations for Hercules Capital (NYSE:HTGC) Stock Price

Hercules Capital (NYSE:HTGC) had its target price lowered by equities research analysts at UBS Group from $19.50 to $15.00 in a research note issued on Friday,Benzinga reports. The firm currently has a “neutral” rating on the financial services provider’s stock. UBS Group’s target price would suggest a potential upside of 6.80% from the company’s current price.

HTGC has been the topic of several other research reports. Piper Sandler downgraded 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, February 13th. Capital One Financial set a $19.75 price target on Hercules Capital in a research note on Monday, December 15th. Weiss Ratings lowered Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, February 24th. Lucid Cap Mkts upgraded shares of Hercules Capital to a “strong-buy” rating in a research note on Monday, December 15th. Finally, Wall Street Zen downgraded shares of Hercules Capital from a “buy” rating to a “hold” rating in a report 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 issued a Hold rating to the company. According to data from MarketBeat.com, Hercules Capital presently has an average rating of “Moderate Buy” and an average target price of $18.71.

Hercules Capital Price Performance

Shares of NYSE:HTGC opened at $14.05 on Friday. The firm’s 50 day moving average is $16.82 and its two-hundred day moving average is $17.84. Hercules Capital has a 52 week low of $13.77 and a 52 week high of $19.67. The firm has a market capitalization of $2.58 billion, a P/E ratio of 7.67 and a beta of 0.87. 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 (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. Hercules Capital had a return on equity of 15.97% and a net margin of 63.80%.The company had revenue of $133.25 million for the quarter, compared to analysts’ expectations of $141.57 million. During the same quarter in the previous year, the company posted $0.49 earnings per share. Analysts anticipate that Hercules Capital will post 1.96 earnings per share for the current year.

Insider Activity

In other news, CFO Seth H. Meyer purchased 7,000 shares of the stock in a transaction dated Friday, February 27th. The shares were bought at an average cost of $14.33 per share, for a total transaction of $100,310.00. Following the transaction, the chief financial officer owned 448,553 shares in the company, valued at $6,427,764.49. This trade represents a 1.59% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Thomas J. Fallon acquired 20,000 shares of the company’s stock in a transaction dated Tuesday, February 17th. The stock was purchased at an average cost of $15.88 per share, for a total transaction of $317,600.00. Following the purchase, the director directly owned 120,369 shares in the company, valued at approximately $1,911,459.72. This represents a 19.93% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 117,015 shares of company stock worth $1,749,620 in the last quarter. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. 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. Caitlin John LLC acquired a new position in shares of Hercules Capital in the 3rd quarter worth approximately $29,000. Cornerstone Planning Group LLC acquired a new position in shares of Hercules Capital in the 4th quarter worth approximately $29,000. Financial Consulate Inc. bought a new stake in shares of Hercules Capital in the 3rd quarter worth approximately $35,000. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in shares of 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 worth $35,000 after purchasing an additional 1,000 shares in the last quarter. 19.69% of the stock is 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.