Latest news with #HTGC
San Francisco Chronicle
31-07-2025
- Business
- San Francisco Chronicle
Hercules Capital: Q2 Earnings Snapshot
SAN MATEO, Calif. (AP) — SAN MATEO, Calif. (AP) — Hercules Capital, Inc. (HTGC) on Thursday reported second-quarter net income of $78.9 million. On a per-share basis, the San Mateo, California-based company said it had net income of 43 cents. Earnings, adjusted for investment costs, were 50 cents per share. The results exceeded Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 47 cents per share. The specialty finance company posted revenue of $137.5 million in the period. _____
Globe and Mail
17-07-2025
- Business
- Globe and Mail
Hercules Capital Announces Date for Release of Second Quarter 2025 Financial Results and Conference Call
Hercules Capital, Inc. (NYSE: HTGC) ('Hercules' or the 'Company'), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that it has scheduled its second quarter 2025 financial results conference call for Thursday, July 31, 2025, at 2:00 p.m. PT (5:00 p.m. ET). Hercules will release its financial results after market close that same day. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Investor Resources section of our website at Please visit the website to test your connection before the webcast. Domestic callers can access the conference call toll free by dialing +1 (800) 225-9448. International callers can access the conference call by dialing +1 (203) 518-9708. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID HTGCQ225. For interested parties, an archived replay will be available on a webcast link located on the Investor Resources section of Hercules Capital's website. About Hercules Capital, Inc. Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology and life sciences industries. Since inception (December 2003), Hercules has committed more than $22 billion to over 680 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact info@ or call 650.289.3060. Hercules, through its wholly owned subsidiary business, Hercules Adviser LLC (the 'Adviser Subsidiary'), also maintains an asset management business through which it manages investments for external parties ('Adviser Funds'). The Adviser Subsidiary is registered as an investment adviser under the Investment Advisers Act of 1940. Hercules' common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol 'HTGC.' In addition, Hercules has one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY).
Yahoo
12-07-2025
- Business
- Yahoo
Hercules Capital (HTGC) Gains As Market Dips: What You Should Know
In the latest close session, Hercules Capital (HTGC) was up +1.07% at $18.94. The stock's performance was ahead of the S&P 500's daily loss of 0.33%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.22%. Coming into today, shares of the specialty finance company had gained 3.48% in the past month. In that same time, the Finance sector gained 3.2%, while the S&P 500 gained 4.07%. The investment community will be closely monitoring the performance of Hercules Capital in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.47, reflecting a 7.84% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $126.18 million, indicating a 0.94% increase compared to the same quarter of the previous year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.91 per share and a revenue of $509.49 million, signifying shifts of -4.5% and +3.22%, respectively, from the last year. Investors should also note any recent changes to analyst estimates for Hercules Capital. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. As of now, Hercules Capital holds a Zacks Rank of #4 (Sell). With respect to valuation, Hercules Capital is currently being traded at a Forward P/E ratio of 9.82. This expresses a premium compared to the average Forward P/E of 9.02 of its industry. The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 4% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow HTGC in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hercules Capital, Inc. (HTGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
Wall Street Analysts Think Hercules Capital (HTGC) Is a Good Investment: Is It?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Let's take a look at what these Wall Street heavyweights have to say about Hercules Capital (HTGC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Hercules Capital currently has an average brokerage recommendation (ABR) of 1.63, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by eight brokerage firms. An ABR of 1.63 approximates between Strong Buy and Buy. Of the eight recommendations that derive the current ABR, five are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 62.5% and 12.5% of all recommendations. Check price target & stock forecast for Hercules Capital here>>> The ABR suggests buying Hercules Capital, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for Hercules Capital, the Zacks Consensus Estimate for the current year has declined 0.4% over the past month to $1.91. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Hercules Capital. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Hercules Capital with a grain of salt. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hercules Capital, Inc. (HTGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
ARCC vs. HTGC: Which BDC Has More Upside Amid Market Uncertainty?
Ares Capital Corporation ARCC and Hercules Capital, Inc. HTGC are two leading Business Development Companies (BDCs) that provide debt financing to private companies. While ARCC focuses on middle-market firms across various industries, HTGC carves out a niche in venture debt, targeting high-growth technology and life sciences today's environment of elevated interest rates, sluggish economic activity and ongoing ambiguity surrounding potential Trump-era tariffs, BDCs face mounting headwinds. Subdued refinancing demand and slower transactional activity are likely to weigh on total investment income, while elevated rates and geopolitical risks pose a threat to asset quality as borrowers face increased debt-servicing pressure. As such, ARCC and HTGC have experienced stock declines. YTD Price Performance Image Source: Zacks Investment Research Against this backdrop, a question arises: which BDC stock is better positioned, Ares Capital with its broad exposure and scale or Hercules Capital with its tech-focused growth strategy? Let's dive into their fundamentals, financial performance and growth outlook to find out which one presents a more compelling opportunity right now. Ares Capital's investments in corporate borrowers generally range from $30 million to $500 million, while its investments in power generation projects are between $10 million and $200 million. It offers customized financing solutions, ranging from senior debt instruments to equity capital, with a focus on senior secured the first quarter of 2025, ARCC reported 4.4% year-over-year growth in total investment income. This was largely driven by an increase in interest income from investments, capital structuring service fees and other income. However, the company recorded lower portfolio exits and gross commitments. As such, the company's top and bottom-line numbers lagged the Zacks Consensus the last five years, Ares Capital's total investment income witnessed a CAGR of 14.4%, driven by higher demand for personalized financing solutions, leading to increased investment commitments. Also, the company originated $15.1 billion, $6 billion, $9.9 billion, $15.6 billion, $6.7 billion and $7.3 billion in 2024, 2023, 2022, 2021, 2020 and 2019, respectively, in gross investment commitments to new and existing portfolio of March 31, 2025, ARCC had a diversified investment portfolio of $27.1 billion across 566 portfolio companies. It had 24% of its investments in software & services and 13% in healthcare equipment & services. Other major investment areas were financial services, which include investment in Ivy Hill Asset Management (10%), commercial & professional services (10%) and insurance services (6%). While this reduces concentration risk and enhances the sustainability of total investment income, many of these industries are expected to face headwinds because of Trump's tariffs. Ares Capital's Investment Portfolio (by Industry) Image Source: Ares Capital Corporation Hence, ARCC's total investment income growth will likely be hampered in the near term due to relatively high interest rates, subdued demand for customized financing and delays in investment commitments amid an uncertain operating backdrop. Sales Estimates Image Source: Zacks Investment Research Hercules Capital's investments generally fall between $15 million and $40 million. It offers customized financing solutions ranging from senior debt to equity capital, with a focus on structured debt with warrants. It invests in companies that have been in business for at least six months to one year before the date of investment and expects these investments to generate revenues within at least two to four the first quarter of 2025, HTGC witnessed a 2% fall in total investment income due to a lower total fee income. Nonetheless, the company recorded a rise in gross new debt and equity commitments during the quarter. In the last decade, Hercules Capital's total investment income witnessed a CAGR of 12.1%. Additionally, the company closed $2.6 billion, $3.1 billion, $2.2 billion and $2.7 billion in new debt and equity commitments in 2021, 2022, 2023 and 2024, respectively. Driven by the rise in demand for customized financing and a robust deal pipeline, total new commitments are expected to keep rising. Total Investment Income Image Source: Hercules Capital, Inc. As of March 31, 2025, HTGC had an investment portfolio of $3.9 billion. It had 32% of its portfolio investments (at fair value) in software companies and 29% in drug discovery & development companies. Other major investment areas were other healthcare services (16%) and consumer & business services (10%). With a focus mainly on the technology and life science sectors, HTGC is better placed to counter tariffs. HTGC's Investment Portfolio (by Industry) Image Source: Hercules Capital, Inc. Despite several near-term headwinds, Hercules Capital is well-placed to record a rise in total investment income and commitments going forward. Sales Estimates Image Source: Zacks Investment Research The Zacks Consensus Estimate for ARCC's 2025 and 2026 earnings indicates a 12% and 0.9% decline for 2025 and 2026, respectively. Over the past month, earnings estimates for 2025 and 2026 have been revised lower. This indicates analysts' bearish sentiments. Earnings Trend Image Source: Zacks Investment Research On the contrary, analysts are more optimistic about HTGC's prospects. While the consensus mark for 2025 earnings suggests a 4% decline, for 2026, it is expected to grow 5.9%. Also, over the past 30 days, earnings estimates for 2025 have been revised lower, while it has been marginally revised north for 2026. Earnings Trend Image Source: Zacks Investment Research Valuation-wise, ARCC is currently trading at a 12-month forward price-to-earnings (P/E) of 10.54X, higher than its five-year median of 9.36X. The HTGC stock, on the other hand, is currently trading at a 12-month forward P/E of 8.83X, which is lower than its five-year median of 9.39X. P/E F12M Image Source: Zacks Investment Research Therefore, Hercules Capital is inexpensive compared to Ares HTGC's return on equity (ROE) of 16.84% is way above ARCC's 11.05%. HTGC also outscores the industry ROE of 11.20%. This reflects Hercules Capital's efficient use of shareholder funds to generate profits. ROE Image Source: Zacks Investment Research Further, HTGC's dividend yield of 9.23% is slightly higher than ARCC's 8.92%. Nonetheless, both are lower than the industry average dividend yield of 10.27%. Dividend Yield Image Source: Zacks Investment Research Despite macroeconomic headwinds, Hercules Capital is better positioned for long-term growth than Ares Capital. HTGC's focus on venture debt in high-growth tech and life sciences sectors gives it an edge, along with a strong return on equity of 16.84%—well above ARCC's and the industry average. Its rising investment commitments and projected earnings growth for 2026 signal strong momentum. HTGC also trades below its five-year median P/E, offering an attractive contrast, ARCC's broader industry exposure makes it more vulnerable to tariff-related risks. Its earnings estimates have been revised downward, and its premium valuation limits near-term upside. While ARCC offers income stability through its diversified portfolio and strong dividends, HTGC's sector focus, higher efficiency and better earnings trajectory make it a more compelling choice for investors seeking solid long-term present, HTGC carries a Zacks Rank of 3 (Hold), while Ares Capital has a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ares Capital Corporation (ARCC) : Free Stock Analysis Report Hercules Capital, Inc. (HTGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
