Hercules Capital (NYSE:HTGC) Hits New 1-Year Low Following Analyst Downgrade

Hercules Capital, Inc. (NYSE:HTGC) shares reached a new 52-week low on Friday after Wells Fargo & Company lowered their price target on the stock from $18.00 to $17.00. Wells Fargo & Company currently has an overweight rating on the stock. Hercules Capital traded as low as $15.44 and last traded at $15.65, with a volume of 1717057 shares traded. The stock had previously closed at $16.60.

A number of other equities analysts have also commented on HTGC. Capital One Financial set a $19.75 price target on shares of Hercules Capital in a research report on Monday, December 15th. Piper Sandler lowered shares of Hercules Capital from an “overweight” rating to a “neutral” rating and decreased their target price for the stock from $20.50 to $17.50 in a research report on Friday. Wall Street Zen downgraded shares of Hercules Capital from a “buy” rating to a “hold” rating in a research report on Saturday, December 20th. Lucid Cap Mkts raised Hercules Capital to a “strong-buy” rating in a research report on Monday, December 15th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Hercules Capital in a research note on Wednesday, January 28th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Hercules Capital has a consensus rating of “Moderate Buy” and an average target price of $19.61.

More Hercules Capital News

Here are the key news stories impacting Hercules Capital this week:

• Positive Sentiment: Originations surged — HTGC reported originations up roughly 71% year-over-year, signaling strong deal flow and deployment momentum that can support future interest income and dividend capacity. Hercules Capital Q4 earnings beat as originations rise 71% Y/Y
• Positive Sentiment: Management described a “record” quarter on several metrics in the earnings call, which supports the narrative of improving operating performance and franchise strength in venture/growth lending. Hercules Capital Inc (HTGC) Q4 2025 Earnings Call Highlights: Record Performance and Strategic …
• Positive Sentiment: Board is weighing a supplemental dividend — management is considering a special dividend, which could boost near-term shareholder yield and support the stock’s income appeal if approved. Hercules Capital Weighs Supplemental Dividend And New Debt Against Valuation
• Neutral Sentiment: EPS in line with expectations — Q4 EPS was $0.48, matching consensus, showing steady profitability but little upside surprise. Hercules Capital (HTGC) Q4 Earnings Match Estimates
• Neutral Sentiment: Full press release and slides available — detailed results, portfolio metrics and the investor slide deck give more context for underwriting, credit metrics, and capital plans. Hercules Capital Reports Fourth Quarter and Full-Year 2025 Financial Results
• Negative Sentiment: Revenue missed estimates — Q4 revenue was $133.3M versus a consensus near $141.6M, which likely tempered upside and contributed to the down move. Hercules Capital Q4 earnings and conference call
• Negative Sentiment: Potential new debt issuance — management is balancing a supplemental dividend against issuing new debt; additional leverage or perceived dilution of capital returns could pressure valuation and investor sentiment. Hercules Capital Weighs Supplemental Dividend And New Debt Against Valuation

Institutional Investors Weigh In On Hercules Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. CWM LLC raised its holdings in shares of Hercules Capital by 79.6% during the 2nd quarter. CWM LLC now owns 1,381 shares of the financial services provider’s stock worth $25,000 after buying an additional 612 shares in the last quarter. Assetmark Inc. grew its position in Hercules Capital by 173.4% in the second quarter. Assetmark Inc. now owns 1,386 shares of the financial services provider’s stock valued at $25,000 after acquiring an additional 879 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in Hercules Capital in the fourth quarter valued at about $27,000. GHP Investment Advisors Inc. acquired a new position in Hercules Capital during the second quarter worth about $27,000. Finally, Caitlin John LLC bought a new position in shares of Hercules Capital in the third quarter worth about $29,000. 19.69% of the stock is currently owned by institutional investors.

Hercules Capital Trading Down 5.7%

The company has a market capitalization of $2.84 billion, a price-to-earnings ratio of 9.10 and a beta of 0.84. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 0.98. The business’s 50 day moving average price is $18.40 and its two-hundred day moving average price is $18.47.

Hercules Capital (NYSE:HTGC) last released its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.48. The business had revenue of $133.25 million during the quarter, compared to analysts’ expectations of $141.57 million. Hercules Capital had a net margin of 60.05% and a return on equity of 16.13%. During the same period in the prior year, the company earned $0.49 EPS. On average, equities analysts predict that Hercules Capital, Inc. will post 1.96 earnings per share for the current fiscal year.

Hercules Capital Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 25th will be issued a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Wednesday, February 25th. Hercules Capital’s dividend payout ratio is presently 93.02%.

Hercules Capital Company Profile

Hercules Capital, Inc is a specialty finance company organized as a business development company (BDC) that provides tailored debt financing solutions to high‐growth companies. Through its external management structure, Hercules Capital extends senior secured loans, subordinated debt and growth capital designed to support research and development, expansion initiatives and working capital needs. The firm primarily partners with venture capital and private equity sponsors to finance innovative enterprises across various developmental stages.

The company’s investment portfolio is concentrated in technology, life sciences and sustainable and renewable technology sectors, reflecting its focus on industries with strong growth prospects and recurring capital requirements.