Taking the lead: Hercules Capital Inc. (HTGC)

Hercules Capital Inc. (NYSE: HTGC) stock fell -1.80% on Friday to $13.11 against a previous-day closing price of $13.35. With 1.37 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.92 million shares. During the session, the Mortgage Finance company that operates in wider Financial sector, reached to the highest price of $13.36 whereas the lowest price it dropped to was $13.01. The 52-week range on HTGC shows that it touched its highest point at $18.90 and its lowest point at $12.61 during that stretch. It currently has a 1-year price target of $16.75. With its current market cap of 1.70 billion, HTGC has annualized dividend of $1.40 while the current yield stands at 10.68%. Beta for the stock currently stands at 1.35.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HTGC was down-trending over the past week, with a drop of -6.16%, but this was down by -10.94% over a month. Three-month performance dropped to -1.35% while six-month performance fell -25.82%. The stock lost -20.14% in the past year, while it has lost -19.49% so far this year. A look at the trailing 12-month EPS for HTGC yields 0.11 with Next year EPS estimates of 1.54. For the next quarter, that number is 0.36. This implies an EPS growth rate of -26.00% for this year and 12.90% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.20%.

Float and Shares Shorts:

At present, 124.25 million HTGC shares are outstanding with a float of 124.08 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.69 million, which was 5.40% higher than short shares on Jun 14, 2022. In addition to Mr. Scott Bluestein as the firm’s CEO, Chief Investment Officer, Pres & Director, Mr. Seth Hardy Meyer serves as its CFO & Chief Accounting Officer.


Institutional Ownership:

Through their ownership of 26.38% of HTGC’s outstanding shares, institutional investors have minority control over the company. Other institutions hold — of HTGC, in contrast to — held by mutual funds. Shares owned by individuals account for –. With a 1.33% stake in HTGC, the VanEck Vectors – BDC Income ETF is the largest stakeholder. A total of 1,690,470 shares are owned by the mutual fund manager. The Border to Coast Listed Alternativ, which owns about 0.97% of HTGC stock, is the second-largest Mutual Fund holder. It holds 1,234,173 shares valued at 17.36 million. T Rowe Price Small Cap Value Fund holds 0.74% of the stake in HTGC, owning 946,870 shares worth 13.32 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HTGC since 9 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HTGC analysts setting a high price target of $20.00 and a low target of $14.50, the average target price over the next 12 months is $16.75. Based on these targets, HTGC could surge 52.56% to reach the target high and rise by 10.6% to reach the target low. Reaching the average price target will result in a growth of 27.77% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HTGC will report FY 2022 earnings on 02/21/2023. Analysts have provided yearly estimates in a range of $1.40 being high and $1.32 being low. For HTGC, this leads to a yearly average estimate of $1.36. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Hercules Capital Inc. surprised analysts by -$0.01 when it reported $0.32 EPS against a consensus estimate of $0.33. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $0.37 and the low estimate is $0.35. The average estimate for the next quarter is thus $0.36.

Summary of Insider Activity:

Insiders traded HTGC stock several times over the past three months with 24 Buys and 13 Sells. In these transactions, 85,405 shares were bought while 38,593 shares were sold. The number of buy transactions has increased to 59 while that of sell transactions has risen to 47 over the past year. The total number of shares bought during that period was 656,580 while 538,694 shares were sold.

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