Sound Income Strategies LLC Cuts Stake in Hercules Capital, Inc. $HTGC

Sound Income Strategies LLC trimmed its holdings in Hercules Capital, Inc. (NYSE:HTGC) by 6.1% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,752,867 shares of the financial services provider’s stock after selling 177,473 shares during the quarter. Hercules Capital comprises 2.8% of Sound Income Strategies LLC’s portfolio, making the stock its largest holding. Sound Income Strategies LLC’s holdings in Hercules Capital were worth $52,057,000 as of its most recent SEC filing.

Other institutional investors have also bought and sold shares of the company. Dakota Wealth Management boosted its holdings in shares of Hercules Capital by 1.6% in the second quarter. Dakota Wealth Management now owns 37,985 shares of the financial services provider’s stock valued at $694,000 after acquiring an additional 600 shares in the last quarter. CWM LLC grew its holdings in shares of Hercules Capital by 79.6% in the 2nd quarter. CWM LLC now owns 1,381 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 612 shares during the last quarter. Rockefeller Capital Management L.P. boosted its position in shares of Hercules Capital by 0.5% in the second quarter. Rockefeller Capital Management L.P. now owns 143,346 shares of the financial services provider’s stock worth $2,620,000 after buying an additional 697 shares during the period. MAS Advisors LLC increased its position in Hercules Capital by 3.6% in the 2nd quarter. MAS Advisors LLC now owns 20,992 shares of the financial services provider’s stock worth $384,000 after purchasing an additional 728 shares during the last quarter. Finally, Abundance Wealth Counselors boosted its position in Hercules Capital by 1.3% during the second quarter. Abundance Wealth Counselors now owns 58,923 shares of the financial services provider’s stock worth $1,077,000 after purchasing an additional 768 shares during the period. Institutional investors and hedge funds own 19.69% of the company’s stock.

Insider Buying and Selling

In other news, Director Gayle A. Crowell acquired 6,000 shares of the business’s stock in a transaction on Monday, November 3rd. The shares were purchased at an average cost of $17.77 per share, with a total value of $106,620.00. Following the acquisition, the director directly owned 78,727 shares of the company’s stock, valued at $1,398,978.79. The trade was a 8.25% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.80% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have issued reports on HTGC shares. Wall Street Zen lowered shares of Hercules Capital from a “buy” rating to a “hold” rating in a report on Saturday. UBS Group reduced their price target on Hercules Capital from $19.00 to $18.50 and set a “neutral” rating for the company in a research report on Tuesday, October 14th. Piper Sandler dropped their price objective on Hercules Capital from $21.00 to $20.50 and set an “overweight” rating on the stock in a research note on Thursday, October 9th. Lucid Cap Mkts raised Hercules Capital to a “strong-buy” rating in a report on Monday, December 15th. Finally, Capital One Financial set a $19.75 price target on Hercules Capital in a research report on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $20.32.

Hercules Capital Stock Performance

NYSE:HTGC opened at $18.49 on Friday. The stock’s 50-day moving average is $17.97 and its 200-day moving average is $18.52. Hercules Capital, Inc. has a 1-year low of $15.65 and a 1-year high of $22.04. The stock has a market cap of $3.36 billion, a P/E ratio of 10.75 and a beta of 0.85. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 0.98.

Hercules Capital (NYSE:HTGC) last announced its earnings results on Thursday, October 30th. The financial services provider reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.48 by $0.01. Hercules Capital had a net margin of 60.05% and a return on equity of 16.13%. The business had revenue of $138.09 million during the quarter, compared to the consensus estimate of $136.95 million. During the same quarter last year, the firm earned $0.51 earnings per share. Equities research analysts anticipate that Hercules Capital, Inc. will post 1.96 earnings per share for the current year.

Hercules Capital Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, November 19th. Investors of record on Wednesday, November 12th were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Wednesday, November 12th. This represents a $1.60 annualized dividend and a dividend yield of 8.7%. Hercules Capital’s payout ratio is presently 93.02%.

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.