Zacks Investment Research Downgrades Hercules Technology Growth Capital (NYSE:HTGC) to Hold

Hercules Technology Growth Capital (NYSE:HTGC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday, May 8th.

According to Zacks, “Shares of Hercules Capital have significantly underperformed the industry in the past six months. Also, the company’s earnings have surpassed the Zacks Consensus Estimate in only one of the trailing four quarters. Its first quarter 2018 results indicate revenue growth. The company is likely to witness growing demand for customized financing, based on market optimism for public equities and an improving economic environment. Further, its steady capital deployment activities will continue to boost investors' confidence in the stock. However, increase in expenses, primarily due to the efforts toward improving originations, is expected to hurt near-term bottom-line growth. Also, lack of geographic diversification remains a concern.”

Several other analysts have also recently weighed in on the stock. ValuEngine raised shares of Hercules Technology Growth Capital from a “sell” rating to a “hold” rating in a research note on Tuesday, May 8th. B. Riley set a $15.00 price objective on shares of Hercules Technology Growth Capital and gave the stock a “buy” rating in a research note on Monday, March 5th. Wedbush raised shares of Hercules Technology Growth Capital from a “neutral” rating to an “outperform” rating and set a $13.75 price objective on the stock in a research note on Wednesday, February 7th. Finally, Sandler O’Neill raised shares of Hercules Technology Growth Capital from a “hold” rating to a “buy” rating in a research note on Tuesday, February 6th. Four analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $14.52.



Shares of Hercules Technology Growth Capital traded down $0.10, reaching $12.37, during midday trading on Tuesday, according to Marketbeat. 2,043 shares of the company were exchanged, compared to its average volume of 366,133. The stock has a market cap of $1.07 billion, a PE ratio of 10.67, a PEG ratio of 2.01 and a beta of 0.73. Hercules Technology Growth Capital has a one year low of $12.31 and a one year high of $12.37. The company has a debt-to-equity ratio of 0.93, a quick ratio of 7.08 and a current ratio of 7.08.

Hercules Technology Growth Capital (NYSE:HTGC) last posted its earnings results on Thursday, May 3rd. The financial services provider reported $0.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.30 by $0.01. Hercules Technology Growth Capital had a net margin of 46.86% and a return on equity of 12.02%. The firm had revenue of $48.70 million for the quarter, compared to analysts’ expectations of $49.72 million. During the same quarter in the previous year, the firm posted $0.28 earnings per share. The company’s revenue was up 5.0% on a year-over-year basis. sell-side analysts predict that Hercules Technology Growth Capital will post 1.24 earnings per share for the current fiscal year.

A number of hedge funds have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. lifted its holdings in Hercules Technology Growth Capital by 74.6% in the third quarter. JPMorgan Chase & Co. now owns 9,104 shares of the financial services provider’s stock valued at $116,000 after buying an additional 3,891 shares during the period. PNC Financial Services Group Inc. lifted its holdings in Hercules Technology Growth Capital by 5.6% in the first quarter. PNC Financial Services Group Inc. now owns 77,493 shares of the financial services provider’s stock valued at $938,000 after buying an additional 4,094 shares during the period. California Public Employees Retirement System raised its holdings in shares of Hercules Technology Growth Capital by 9.0% during the fourth quarter. California Public Employees Retirement System now owns 49,900 shares of the financial services provider’s stock valued at $655,000 after purchasing an additional 4,100 shares during the period. Polaris Capital Management LLC raised its holdings in shares of Hercules Technology Growth Capital by 2.5% during the first quarter. Polaris Capital Management LLC now owns 188,658 shares of the financial services provider’s stock valued at $2,283,000 after purchasing an additional 4,648 shares during the period. Finally, Salzhauer Michael raised its holdings in shares of Hercules Technology Growth Capital by 33.3% during the fourth quarter. Salzhauer Michael now owns 20,000 shares of the financial services provider’s stock valued at $262,000 after purchasing an additional 5,000 shares during the period. Institutional investors and hedge funds own 40.74% of the company’s stock.

Hercules Technology Growth Capital Company Profile

Hercules Capital, Inc, formerly known as Hercules Technology Growth Capital, Inc, is a business development company 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.

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