Hercules Capital, Inc. (NYSE:HTGC) Sees Significant Growth in Short Interest

Hercules Capital, Inc. (NYSE:HTGC) was the recipient of a large growth in short interest during the month of February. As of February 27th, there was short interest totaling 11,895,383 shares, a growth of 46.7% from the February 12th total of 8,110,923 shares. Currently, 6.6% of the company’s stock are sold short. Based on an average trading volume of 4,979,228 shares, the days-to-cover ratio is presently 2.4 days. Based on an average trading volume of 4,979,228 shares, the days-to-cover ratio is presently 2.4 days. Currently, 6.6% of the company’s stock are sold short.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on HTGC shares. Lucid Cap Mkts upgraded Hercules Capital to a “strong-buy” rating in a research note on Monday, December 15th. Capital One Financial set a $19.75 price target on Hercules Capital in a report on Monday, December 15th. UBS Group cut their price objective on Hercules Capital from $19.50 to $15.00 and set a “neutral” rating on the stock in a research report on Friday. 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. Finally, Wall Street Zen cut Hercules Capital from a “buy” rating to a “hold” rating in a research note on Saturday, December 20th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $18.71.

Insider Transactions at Hercules Capital

In other news, Director Paramjeet K. Randhawa purchased 3,050 shares of the business’s stock in a transaction that occurred on Wednesday, March 4th. The shares were acquired at an average cost of $14.78 per share, for a total transaction of $45,079.00. Following the completion of the acquisition, the director owned 19,560 shares in the company, valued at $289,096.80. This trade represents a 18.47% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Thomas J. Fallon acquired 20,000 shares of Hercules Capital stock in a transaction on Friday, February 27th. The stock was purchased at an average cost of $14.20 per share, with a total value of $284,000.00. Following the completion of the transaction, the director directly owned 150,369 shares in the company, valued at $2,135,239.80. This represents a 15.34% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have purchased 117,015 shares of company stock worth $1,749,620. 1.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Hercules Capital

Several institutional investors have recently added to or reduced their stakes in HTGC. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in Hercules Capital during the fourth quarter worth about $27,000. Caitlin John LLC bought a new stake in shares of Hercules Capital in the third quarter valued at approximately $29,000. Cornerstone Planning Group LLC purchased a new stake in shares of Hercules Capital during the 4th quarter valued at approximately $29,000. Financial Consulate Inc. purchased a new stake in shares of Hercules Capital during the 3rd quarter valued at approximately $35,000. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in 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 buying an additional 1,000 shares during the period. 19.69% of the stock is owned by hedge funds and other institutional investors.

Hercules Capital Trading Up 0.0%

Shares of HTGC stock opened at $14.05 on Friday. The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 1.03. The firm has a market cap of $2.58 billion, a P/E ratio of 7.67 and a beta of 0.87. The company has a 50 day moving average of $16.82 and a 200-day moving average of $17.85. Hercules Capital has a 12-month low of $13.77 and a 12-month high of $19.67.

Hercules Capital (NYSE:HTGC) last posted its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.48 EPS 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 business had revenue of $133.25 million for the quarter, compared to the consensus estimate of $141.57 million. During the same quarter in the prior year, the business earned $0.49 earnings per share. Sell-side analysts anticipate that Hercules Capital will post 1.96 earnings per share for the current year.

Hercules Capital Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 4th. Investors of record on Wednesday, February 25th were issued a $0.07 dividend. The ex-dividend date of this dividend was Wednesday, February 25th. This represents a $0.28 annualized dividend and a yield of 2.0%. Hercules Capital’s dividend payout ratio (DPR) is 87.43%.

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.