BDCs are inherently a risky asset class. It does not make sense to go further up in the risk curve here. One of such, in my view, illogical moves is investing in VC-focused BDCs.
Horizon Technology Finance (HRZN) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.38 per share a year ago.
Horizon Technology's share price has bottomed out, presenting a prime buying opportunity for long-term investors due to improved market trends and financial metrics. The venture capital market's robust recovery and Horizon's aggressive growth strategy are expected to drive investment income and portfolio growth. Horizon Technology's dividend yield of over 14% is secure, supported by strong liquidity and investment income covering dividend payments.
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Horizon Technology Finance Corporation stands as a pivotal business development entity, focusing its expertise on the arena of lending and investing in projects at the development stage. With a strategic aim to boost ventures within transformative sectors, this corporation earmarks substantial funds towards entities that are backed by venture capital. Their sphere of influence spans a wide array of industries, including but not limited to technology, life sciences, healthcare information and services, as well as cleantech and sustainability. By positioning itself as a key financier, Horizon Technology Finance Corporation predicates its operations on fostering growth and innovation within the United States, ensuring that companies breaking new ground in these vital fields have the pivotal support they need to thrive and advance.
Horizon Technology Finance Corporation delivers a comprehensive suite of financial solutions tailored to the unique needs of development-stage companies across various high-growth industries: