Hercules Capital (NYSE:HTGC) Reaches New 52-Week Low – What’s Next?

Hercules Capital, Inc. (NYSE:HTGC)’s stock price hit a new 52-week low on Friday . The stock traded as low as $15.27 and last traded at $15.4650, with a volume of 541660 shares. The stock had previously closed at $15.65.

Key Headlines Impacting Hercules Capital

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

• Positive Sentiment: Directors increased personal stakes: two insiders bought shares on Feb. 17 — Thomas J. Fallon purchased 20,000 shares and Nikos Theodosopoulos bought 6,165 shares, signaling management confidence. Thomas J. Fallon SEC filing Nikos Theodosopoulos purchase
• Positive Sentiment: Analyst upgrade/positive take: Seeking Alpha upgraded HTGC from Hold to Buy after a ~16% pullback, arguing the sell-off presents an attractive yield and valuation entry for income investors. Seeking Alpha upgrade
• Positive Sentiment: Management highlights growth: CEO and management emphasized record originations ($1.06B) and portfolio growth on the Q4 call, which supports future earnings potential despite a near-term revenue miss. Q4 earnings call coverage
• Neutral Sentiment: Retail/coverage mention: HTGC appeared on a Yahoo watchlist of “stocks under $50,” a visibility note but not a material catalyst. Watchlist mention
• Neutral Sentiment: Wall Street mix: Brokers maintain a mix of Buy/Outperform ratings but have trimmed price targets recently; consensus still modestly positive but shows reduced near-term upside. Analyst coverage summary
• Negative Sentiment: Q4 misses: Hercules met GAAP EPS but missed revenue and non‑GAAP profit expectations, which likely pressured the shares as investors focused on near‑term payout sustainability. Earnings call coverage
• Negative Sentiment: Dividend reduced: Management announced a quarterly dividend of $0.07 (annualized $0.28, ~1.8% yield) with a high payout ratio (~87%), undermining HTGC’s appeal to income investors and likely contributing to the selloff. MarketBeat dividend & metrics
• Negative Sentiment: Technical and valuation headwinds: HTGC is trading below its 50- and 200-day moving averages and near its 52-week low; combined with leverage (debt/equity ~1.03) this amplifies downside in weak market/sector conditions. MarketBeat stock stats

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Weiss Ratings reiterated a “buy (b-)” rating on shares of Hercules Capital in a research note on Wednesday, January 28th. Capital One Financial set a $19.75 target price on Hercules Capital in a research report on Monday, December 15th. Wells Fargo & Company decreased their target price on Hercules Capital from $18.00 to $17.00 and set an “overweight” rating for the company in a research report on Friday, February 13th. Piper Sandler downgraded Hercules Capital from an “overweight” rating to a “neutral” rating and dropped their price target for the stock from $20.50 to $17.50 in a research note on Friday, February 13th. Finally, Keefe, Bruyette & Woods reduced their price objective on Hercules Capital from $20.00 to $19.00 and set an “outperform” rating for the company in a research note on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Hercules Capital presently has an average rating of “Moderate Buy” and an average target price of $19.29.

Hercules Capital Price Performance

The company has a 50-day moving average of $18.01 and a 200-day moving average of $18.32. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.48 and a current ratio of 1.48. The stock has a market cap of $2.84 billion, a price-to-earnings ratio of 8.43 and a beta of 0.84.

Hercules Capital (NYSE:HTGC) last announced its earnings results on Thursday, February 12th. The financial services provider reported $0.48 earnings per share for the quarter, meeting the consensus estimate 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 the consensus estimate of $141.57 million. During the same period last year, the business posted $0.49 EPS. As a group, equities research analysts predict that Hercules Capital, Inc. will post 1.96 earnings per share for the current year.

Hercules Capital Cuts Dividend

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

Insider Buying and Selling at Hercules Capital

In other news, Director Nikos Theodosopoulos purchased 6,165 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was purchased at an average cost of $15.93 per share, with a total value of $98,208.45. Following the completion of the acquisition, the director directly owned 18,923 shares of the company’s stock, valued at approximately $301,443.39. This trade represents a 48.32% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Thomas J. Fallon acquired 20,000 shares of the stock in a transaction on Tuesday, February 17th. The stock was acquired at an average cost of $15.88 per share, for a total transaction of $317,600.00. Following the acquisition, the director directly owned 120,369 shares in the company, valued at $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. 1.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC boosted its stake in shares of Hercules Capital by 173.3% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 89,575 shares of the financial services provider’s stock valued at $1,605,000 after acquiring an additional 56,797 shares during the last quarter. International Assets Investment Management LLC boosted its stake in shares of Hercules Capital by 308.9% during the 3rd quarter. International Assets Investment Management LLC now owns 79,555 shares of the financial services provider’s stock worth $1,493,000 after purchasing an additional 60,100 shares during the last quarter. Tred Avon Family Wealth LLC acquired a new stake in shares of Hercules Capital during the 3rd quarter worth about $1,042,000. Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of Hercules Capital by 42.3% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 884,946 shares of the financial services provider’s stock worth $16,734,000 after buying an additional 263,222 shares in the last quarter. Finally, Muzinich & Co. Inc. raised its position in shares of Hercules Capital by 34.5% in the third quarter. Muzinich & Co. Inc. now owns 992,820 shares of the financial services provider’s stock valued at $18,774,000 after buying an additional 254,651 shares during the last quarter. 19.69% of the stock is currently owned by institutional investors and hedge funds.

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.