Hercules Capital (NYSE:HTGC) Director Robert Badavas Acquires 5,000 Shares

Hercules Capital, Inc. (NYSE:HTGC) Director Robert Badavas acquired 5,000 shares of the company’s stock in a transaction on Tuesday, February 24th. The shares were purchased at an average cost of $15.01 per share, with a total value of $75,050.00. Following the completion of the purchase, the director directly owned 117,073 shares of the company’s stock, valued at $1,757,265.73. This trade represents a 4.46% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Hercules Capital Trading Up 0.1%

Shares of HTGC traded up $0.02 during midday trading on Wednesday, hitting $15.09. The stock had a trading volume of 4,679,824 shares, compared to its average volume of 3,337,349. The stock’s 50 day moving average is $17.79 and its 200 day moving average is $18.23. The firm has a market cap of $2.77 billion, a PE ratio of 8.24 and a beta of 0.84. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.48 and a quick ratio of 1.48. Hercules Capital, Inc. has a 1 year low of $14.57 and a 1 year high of $21.14.

Hercules Capital (NYSE:HTGC) last issued its quarterly earnings results 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 net margin of 63.80% and a return on equity of 15.97%. The company had revenue of $133.25 million for the quarter, compared to the consensus estimate of $141.57 million. During the same period in the prior year, the firm posted $0.49 EPS. As a group, analysts forecast that Hercules Capital, Inc. will post 1.96 EPS for the current fiscal year.

Hercules Capital Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Investors of record on Wednesday, February 25th will be paid a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Wednesday, February 25th. Hercules Capital’s dividend payout ratio (DPR) is currently 87.43%.

Hercules Capital News Roundup

Here are the key news stories impacting Hercules Capital this week:

• Positive Sentiment: Large insider purchases — CEO Scott Bluestein bought 30,000 shares (~$15.08 each) and two directors (Robert P. Badavas and Gayle A. Crowell) also added shares, signaling management confidence in the stock. CEO SEC Filing Director Badavas SEC Filing Director Crowell SEC Filing
• Neutral Sentiment: Analysts modestly trimmed fair‑value models — a consolidated fair value estimate moved from $21.22 to $20.31, described as a measured recalibration rather than a dramatic reset. How The Hercules Capital Story Is Shifting
• Negative Sentiment: Short interest jumped sharply — shorted shares rose ~52% month‑over‑month to ~8.11M shares (~4.5% of shares outstanding), increasing bearish pressure and the potential for accelerated selling.
• Negative Sentiment: Piper Sandler downgraded HTGC to Neutral and cut its price target to $17.50 (from $20.50) after the Q4 report, citing portfolio concentration (notably software exposure) and raising execution risk concerns. Piper Sandler Downgrade
• Negative Sentiment: Dividend reduced to $0.07 quarterly (ex‑dividend Feb 25), lowering yield and removing some income support; combined with a revenue miss in Q4, this likely contributed to investor caution.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Wells Fargo & Company cut their price target on shares of Hercules Capital from $18.00 to $17.00 and set an “overweight” rating on the stock in a report on Friday, February 13th. Weiss Ratings lowered Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday. Lucid Cap Mkts upgraded Hercules Capital to a “strong-buy” rating in a report on Monday, December 15th. Capital One Financial set a $19.75 price target on Hercules Capital in a research report on Monday, December 15th. Finally, Piper Sandler downgraded Hercules Capital from an “overweight” rating to a “neutral” rating and decreased their price objective for the company from $20.50 to $17.50 in a report on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $19.29.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in HTGC. CWM LLC lifted its stake in shares of Hercules Capital by 79.6% during the 2nd quarter. CWM LLC now owns 1,381 shares of the financial services provider’s stock worth $25,000 after purchasing an additional 612 shares during the last quarter. Assetmark Inc. lifted its position in shares of Hercules Capital by 173.4% during the second quarter. Assetmark Inc. now owns 1,386 shares of the financial services provider’s stock valued at $25,000 after buying an additional 879 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in shares of Hercules Capital in the 4th quarter valued at about $27,000. GHP Investment Advisors Inc. bought a new stake in shares of Hercules Capital in the 2nd quarter valued at about $27,000. Finally, Caitlin John LLC purchased a new position in shares of Hercules Capital in the 3rd quarter worth approximately $29,000. 19.69% of the stock is owned by institutional investors.

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.