Hercules Capital (NYSE:HTGC) Shares Gap Down – Should You Sell?

Hercules Capital, Inc. (NYSE:HTGC)’s share price gapped down prior to trading on Wednesday . The stock had previously closed at $19.80, but opened at $19.22. Hercules Capital shares last traded at $19.24, with a volume of 352,613 shares changing hands.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. JMP Securities boosted their price target on shares of Hercules Capital from $20.00 to $22.00 and gave the stock a “market outperform” rating in a research note on Tuesday, July 30th. Wells Fargo & Company increased their price objective on Hercules Capital from $20.00 to $21.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. Finally, Piper Sandler upped their price target on shares of Hercules Capital from $22.00 to $22.50 and gave the company an “overweight” rating in a report on Friday, August 2nd. Three equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $19.83.

Hercules Capital Price Performance

The company has a market cap of $3.12 billion, a PE ratio of 9.54 and a beta of 1.39. The business has a 50 day moving average of $19.63 and a 200 day moving average of $19.71. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.61 and a quick ratio of 1.61.

Hercules Capital (NYSE:HTGC) last announced its earnings results on Wednesday, October 30th. The financial services provider reported $0.51 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.51. Hercules Capital had a net margin of 65.07% and a return on equity of 17.88%. The firm had revenue of $125.25 million for the quarter, compared to analyst estimates of $125.80 million. During the same quarter in the previous year, the firm posted $0.52 EPS. As a group, research analysts predict that Hercules Capital, Inc. will post 2.02 EPS for the current year.

Hercules Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 20th. Stockholders of record on Wednesday, November 13th will be given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 9.99%. The ex-dividend date is Wednesday, November 13th. Hercules Capital’s dividend payout ratio is currently 79.21%.

Insider Activity at Hercules Capital

In other news, CEO Scott Bluestein sold 100,000 shares of the business’s stock in a transaction on Thursday, September 26th. The shares were sold at an average price of $19.59, for a total transaction of $1,959,000.00. Following the sale, the chief executive officer now owns 2,161,207 shares in the company, valued at approximately $42,338,045.13. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 1.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Hercules Capital

Several hedge funds have recently bought and sold shares of the business. Wedbush Securities Inc. increased its holdings in shares of Hercules Capital by 3.8% during the second quarter. Wedbush Securities Inc. now owns 15,689 shares of the financial services provider’s stock valued at $321,000 after acquiring an additional 569 shares in the last quarter. RMR Wealth Builders lifted its stake in shares of Hercules Capital by 3.5% in the second quarter. RMR Wealth Builders now owns 16,997 shares of the financial services provider’s stock worth $348,000 after buying an additional 571 shares in the last quarter. Founders Financial Alliance LLC grew its holdings in shares of Hercules Capital by 2.3% during the second quarter. Founders Financial Alliance LLC now owns 28,028 shares of the financial services provider’s stock valued at $573,000 after buying an additional 627 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its position in shares of Hercules Capital by 2.7% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 27,319 shares of the financial services provider’s stock valued at $540,000 after acquiring an additional 711 shares in the last quarter. Finally, Arkadios Wealth Advisors raised its holdings in Hercules Capital by 1.6% in the 3rd quarter. Arkadios Wealth Advisors now owns 55,802 shares of the financial services provider’s stock worth $1,096,000 after acquiring an additional 900 shares during the last quarter. Institutional investors own 19.69% of the company’s stock.

Hercules Capital Company Profile

Hercules Capital, Inc is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies.