Hercules Capital (NYSE:HTGC) Stock Crosses Above 200-Day Moving Average – Should You Sell?

Hercules Capital, Inc. (NYSE:HTGC) shares passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $15.66 and traded as high as $16.66. Hercules Capital shares last traded at $16.6150, with a volume of 1,634,547 shares trading hands.

Analysts Set New Price Targets

A number of research firms have weighed in on HTGC. Piper Sandler raised their price target on Hercules Capital from $16.50 to $17.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Citizens Jmp reduced their price objective on Hercules Capital from $24.00 to $22.00 and set a “market outperform” rating on the stock in a research report on Wednesday, April 22nd. Weiss Ratings reissued a “hold (c)” rating on shares of Hercules Capital in a report on Wednesday, June 17th. LADENBURG THALM/SH SH dropped their target price on Hercules Capital from $21.00 to $20.00 and set a “buy” rating for the company in a research report on Friday, July 31st. Finally, UBS Group boosted their target price on Hercules Capital from $15.00 to $15.50 and gave the stock a “neutral” rating in a research report on Monday, May 18th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $18.46.

Hercules Capital Stock Performance

The business’s fifty day simple moving average is $16.04 and its 200-day simple moving average is $15.66. The firm has a market cap of $3.11 billion, a P/E ratio of 8.27 and a beta of 0.79. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.03.

Hercules Capital (NYSE:HTGC) last issued its quarterly earnings data on Thursday, July 30th. The financial services provider reported $0.50 EPS for the quarter, beating the consensus estimate of $0.48 by $0.02. The firm had revenue of $134.41 million during the quarter, compared to the consensus estimate of $146.71 million. Hercules Capital had a net margin of 67.68% and a return on equity of 16.01%. The company’s quarterly revenue was up 8.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.50 earnings per share. As a group, sell-side analysts expect that Hercules Capital, Inc. will post 1.95 earnings per share for the current year.

Hercules Capital Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 18th. Shareholders of record on Tuesday, August 11th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 9.6%. The ex-dividend date of this dividend is Tuesday, August 11th. This is a positive change from Hercules Capital’s previous quarterly dividend of $0.07. Hercules Capital’s dividend payout ratio is currently 79.60%.

Institutional Investors Weigh In On Hercules Capital

A number of large investors have recently made changes to their positions in HTGC. Prevail Innovative Wealth Advisors LLC raised its holdings in shares of Hercules Capital by 123.6% during the fourth quarter. Prevail Innovative Wealth Advisors LLC now owns 239,614 shares of the financial services provider’s stock valued at $4,510,000 after acquiring an additional 132,466 shares in the last quarter. UBS Group AG lifted its stake in Hercules Capital by 26.8% in the fourth quarter. UBS Group AG now owns 1,671,860 shares of the financial services provider’s stock worth $31,464,000 after acquiring an additional 353,092 shares during the period. Legal & General Group Plc boosted its holdings in Hercules Capital by 17.9% in the fourth quarter. Legal & General Group Plc now owns 1,382,084 shares of the financial services provider’s stock valued at $26,004,000 after acquiring an additional 209,854 shares in the last quarter. Sound Income Strategies LLC increased its position in Hercules Capital by 25.1% during the 1st quarter. Sound Income Strategies LLC now owns 3,382,058 shares of the financial services provider’s stock valued at $49,243,000 after purchasing an additional 678,783 shares during the period. Finally, Ares Financial Consulting LLC purchased a new position in Hercules Capital during the 4th quarter valued at $898,000. 19.69% of the stock is currently owned by institutional investors.

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.