Beyond analysts' top -and-bottom-line estimates for Hercules Capital (HTGC), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended September 2024.
Hercules Capital, Inc. offers an attractive dividend yield of nearly 10%, supported by strong net investment income coverage. Portfolio quality shows slight deterioration with an increase in Grade 3 risk ratings, but overall risk remains manageable with low non-accrual rates. HTGC trades at a 77% premium to NAV, significantly above its historical average, leading me to rate it a hold despite solid fundamentals.
In the latest trading session, Hercules Capital (HTGC) closed at $20.18, marking a +1.51% move from the previous day.
Hercules Capital offers a ~10% dividend yield and has a strong track record, but currently trades at a significant premium to its net asset value. The company is well-diversified with a focus on Technology and Life Sciences, and is internally managed, aligning management interests with shareholders. Despite solid credit quality and a healthy balance sheet, recent unrealized depreciation and high valuation suggest potential risks.
You don't need to be rich to put your money to work on Wall Street.
Hercules Capital (HTGC) closed at $20.11 in the latest trading session, marking a -0.3% move from the prior day.
In the latest trading session, Hercules Capital (HTGC) closed at $19.54, marking a -1.26% move from the previous day.
HTGC's top line is expected to keep improving, driven by the growing demand for customized financing. Rising expenses might hurt its profits.
In the most recent trading session, Hercules Capital (HTGC) closed at $19.57, indicating a +0.57% shift from the previous trading day.
Hercules Capital (HTGC) concluded the recent trading session at $19.38, signifying a +1.73% move from its prior day's close.
Interest rate cuts could finally arrive in September. Business development companies (BDC) could be particular beneficiaries of lower rates.
Best-of-breed stocks in the BDC segment like Hercules Capital offer the potential for outsized total returns and high current income. HTGC has operational efficiency, alignment of interest due to internal management, and a strong balance sheet. The stock offers a 10.3% dividend yield that's well-covered by NII, strong portfolio performance and growth potential.