Hercules Capital Inc. (HTGC)
Summary
HTGC Chart
Hercules Capital: Portfolio Metrics Warrant An Upgrade To Buy
Hercules Capital earns a BUY rating due to strong fundamentals, stable NAV, and robust portfolio performance in the venture lending space. HTGC's non-accruals remain low at 0.3%, leverage has declined, and the credit profile is clean, supporting income durability. Distribution coverage is solid with a $0.40 base dividend (11.1% yield), a $0.92 per share spillover, and NII per share steady at $2.00.
Hercules Capital: Net Asset Value And Dividend Coverage Expands
Hercules Capital's net asset value rose to $12.15 per share during the second quarter on the back of healthy net investment income and realized gains. Total investment income grew 8.5% year-over-year, with new originations of $927.3 million and effective yield expanding by 60 basis points sequentially to 13.4%. HTGC's dividend coverage was up by 400 basis points sequentially, with its dividend yield at 11.5% and non-accrual rate muted at 0.1% of its investment portfolio at fair value.
Hercules Capital: Strong Growth But Valuation Leaves Little Room For Error
Hercules Capital is rated Buy at $16.40, targeting $18–$19.50 in 12–18 months, with an attractive income-driven return profile. HTGC benefits from record venture capital activity and a fast-growing Adviser business but faces a concentrated AI lending environment and early loan repayments. Dividend yield is 9.8% base (11.5% total), well-covered by NII, but credit quality trends and premium to NAV require close monitoring.
Hercules Capital Inc. Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| DI David Izzi Brown, LISLE/CUMMINGS Inc. | 3,811 | $63,529 | $62,576.62 | -$952.38 | -1.5% |
 Curtis Ellergodt Rothschild Investment LLC | 100 | $1,845 | $1,688 | -$157 | -8.51% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 182,643 | $2.88M | $3.15M | $270,311.75 | 9.38% |
| PER Paul E. Rasmussen SIT INVESTMENT ASSOCIATES Inc. | 35,000 | $593,645.83 | $583,450 | -$10,195.83 | -1.72% |
| ABB Alexander Bjornager Bonde Danske Bank A/S | 2 | $29.56 | $34.48 | $4.92 | 16.64% |
Hercules Capital Inc. Analysts
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| MW Melissa Wedel JP Morgan | 4,034.38 | $71,287.48 | $71,287.48 | - | - |
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Hercules Capital Inc. Profile
| Capital Markets Industry | Financials Sector | Scott Bluestein CEO | NYSE Exchange | 427096508 CUSIP |
| US Country | 100 Employees | 11 Aug 2026 Last Dividend | - Last Split | 9 Jun 2005 IPO Date |
Overview
Hercules Capital, Inc. is a distinguished business development company specializing in providing a suite of financing solutions aimed at supporting the growth and development of privately held, venture capital-backed companies at various stages of their lifecycle, from startups to expansion phases. Moreover, Hercules Capital extends its services to select publicly listed companies and special opportunity lower middle market companies seeking additional capital for various financial needs. The firm’s comprehensive offerings cover a broad range of financial solutions, including venture debt, senior secured loans, and growth capital, tailored to support acquisitions, recapitalizations, refinancing, and various stages of company growth. With a focus on technology and innovative industries, Hercules Capital positions itself as a vital partner for companies looking to navigate the financial challenges of expansion, acquisitions, and overall corporate growth.
Products and Services
- Growth Capital Financing
This solution is designed for capital extension, aiding companies in navigating through growth phases with tailored financial support.
- Management Buy-Out and Corporate Spin-Out Financing
Hercules Capital provides specialized financing options for management buy-outs and corporate spin-outs, facilitating smooth transitions and continued growth.
- Acquisition Financing
Financing solutions focused on assisting companies with acquisitions, whether it’s for specific assets, companies, or intellectual property.
- Convertible, Subordinated, and/or Mezzanine Loans
Flexible debt solutions that cater to companies looking for alternative financing structures to support their growth or restructuring initiatives.
- Domestic and International Corporate Expansion
Capital solutions that support both domestic and global expansion efforts, enabling companies to scale operations and enter new markets successfully.
- Vendor Financing
Aimed at accelerating revenue through sales and marketing development and manufacturing expansion, this solution supports companies in optimizing their supply chain and sales operations.
- Asset-Based Financing
Hercules Capital offers financing solutions that are secured by company assets, including accounts receivable and equipment, to provide working capital for continued operations and growth.
- Bridge Financing to IPO or M&A
Short-term financing options designed to bridge the gap to an initial public offering (IPO) or facilitate mergers and acquisitions (M&A) processes.
- Dividend Recapitalizations and Liquidity Solutions
Financial structures tailored to provide investor liquidity through dividend recapitalizations and other mechanisms.
- Public Company Financing
Solutions aimed at public companies seeking additional capital for asset growth, production capacity expansion, and to facilitate continued strategic initiatives.
- Strategic and Intellectual Property Acquisition Financings
Custom financing solutions focused on enabling companies to acquire strategic assets or intellectual property to enhance their market positioning and competitive advantage.
