Horizon Technology Finance (NASDAQ:HRZN) Releases Earnings Results, Misses Estimates By $0.02 EPS

Horizon Technology Finance (NASDAQ:HRZN) issued its quarterly earnings data on Tuesday. The investment management company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.02), Zacks reports. Horizon Technology Finance had a return on equity of 11.96% and a net margin of 5.27%.The firm had revenue of ($44.66) million during the quarter, compared to the consensus estimate of $25.22 million.

Horizon Technology Finance Stock Performance

Shares of HRZN traded up $0.23 during mid-day trading on Thursday, hitting $4.61. 562,166 shares of the stock were exchanged, compared to its average volume of 919,897. The company has a market cap of $314.34 million, a PE ratio of 12.79 and a beta of 0.98. Horizon Technology Finance has a 52-week low of $3.80 and a 52-week high of $7.76. The firm has a 50-day moving average of $4.49 and a two-hundred day moving average of $4.86.

Horizon Technology Finance Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, November 17th will be paid a $0.06 dividend. The ex-dividend date of this dividend is Tuesday, November 17th. This represents a c) dividend on an annualized basis and a yield of 15.6%. Horizon Technology Finance’s payout ratio is presently 167.44%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. UBS Group reduced their target price on shares of Horizon Technology Finance from $4.50 to $4.25 and set a “neutral” rating for the company in a report on Monday, May 18th. Weiss Ratings reissued a “sell (d+)” rating on shares of Horizon Technology Finance in a research report on Friday, May 8th. Finally, Zacks Research upgraded Horizon Technology Finance from a “strong sell” rating to a “hold” rating in a research note on Thursday, May 7th. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $5.65.

Key Stories Impacting Horizon Technology Finance

Here are the key news stories impacting Horizon Technology Finance this week:

• Positive Sentiment: Strong future loan pipeline: Horizon reported $87 million in new venture-loan commitments during the third quarter, supporting expectations for portfolio expansion and future investment income. The company ended the second quarter with a $228 million committed backlog. Horizon signals Q3 portfolio growth with $87M in new venture loan commitments
• Positive Sentiment: High shareholder distributions: The board approved regular monthly dividends of $0.06 per share and special distributions of $0.03 per share for October, November and December. The combined payouts may support investor demand for HRZN, particularly among income-oriented shareholders. Horizon Technology Announces Fourth-Quarter Dividend Distributions
• Positive Sentiment: Portfolio and capital-return initiatives: Second-quarter investment income increased to $25.0 million from $24.5 million a year earlier. Horizon funded nine loans totaling $72.7 million, reported a 14.9% debt-portfolio yield, expanded its stock-repurchase authorization to $20 million and repurchased approximately 1.37 million shares at an average $4.54. Horizon Technology Finance Q2 investment income rises to $25 million
• Neutral Sentiment: Broker sentiment remains cautious: Analysts collectively rate HRZN “Hold,” suggesting the income profile is recognized but near-term upside is viewed as limited. Horizon Technology Finance Given Average Recommendation of Hold
• Negative Sentiment: Quarterly earnings missed estimates: Adjusted earnings were $0.11 per share, below the $0.13 consensus and down from $0.28 a year earlier. Net investment income included $0.07 per share of non-recurring merger expenses, while net assets declined by $37.3 million, or $0.57 per share. These results could pressure estimates despite the stronger lending pipeline. Horizon Technology Finance Lags Q2 Earnings and Revenue Estimates

Insider Activity at Horizon Technology Finance

In other news, Director Thomas J. Allison bought 6,000 shares of the stock in a transaction dated Tuesday, June 9th. The stock was purchased at an average price of $4.36 per share, for a total transaction of $26,160.00. Following the acquisition, the director owned 55,926 shares of the company’s stock, valued at $243,837.36. The trade was a 12.02% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CIO Paul G. Seitz acquired 11,477 shares of the company’s stock in a transaction that occurred on Tuesday, June 9th. The shares were acquired at an average price of $4.35 per share, with a total value of $49,924.95. Following the acquisition, the executive owned 12,242 shares in the company, valued at $53,252.70. This trade represents a 1,500.26% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought 134,977 shares of company stock valued at $585,975 over the last quarter. 0.29% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Horizon Technology Finance

Several hedge funds have recently modified their holdings of the business. Tower Research Capital LLC TRC bought a new position in shares of Horizon Technology Finance in the 2nd quarter worth $60,000. HRT Financial LP bought a new position in Horizon Technology Finance in the fourth quarter worth about $77,000. Marshall Wace LLP purchased a new stake in shares of Horizon Technology Finance during the second quarter valued at about $103,000. Virtu Financial LLC purchased a new stake in shares of Horizon Technology Finance during the third quarter valued at about $119,000. Finally, BNP Paribas Financial Markets bought a new stake in shares of Horizon Technology Finance in the 2nd quarter valued at about $122,000. Hedge funds and other institutional investors own 4.94% of the company’s stock.

About Horizon Technology Finance

Horizon Technology Finance Corporation is a specialty finance company organized as a business development company (BDC) that provides private credit solutions to venture capital and private equity-backed technology, life science and healthcare companies. The firm targets companies at various stages of development, offering secured debt financing structures such as first‐lien and second‐lien loans, as well as equity co‐investment opportunities in select portfolio companies.

Horizon Technology Finance’s investment strategy emphasizes deployment of capital in U.S.‐based enterprises with proven technology, strong management teams and clear paths to growth.