Hercules Capital (NYSE:HTGC) Issues Quarterly Earnings Results

Hercules Capital (NYSE:HTGC) issued its quarterly earnings results on Tuesday. The financial services provider reported $0.48 earnings per share for the quarter, beating analysts’ consensus estimates of $0.47 by $0.01, Zacks reports. The firm had revenue of $134.94 million for the quarter, compared to analyst estimates of $141.39 million. Hercules Capital had a net margin of 59.85% and a return on equity of 16.12%. Hercules Capital’s quarterly revenue was up 18.4% compared to the same quarter last year. During the same period last year, the company posted $0.45 EPS.

Here are the key takeaways from Hercules Capital’s conference call:

• Hercules reported all-time records for originations and income — $1.81 billion of new commitments in Q1, $141.5 million total investment income and $88.1 million net investment income, with assets under management of about $6.1 billion.
• Liquidity and capital access are strong — the BDC held $454.5 million of available liquidity and the platform had over $1 billion, while management raised $300 million of 2029 notes and ~$52 million via the ATM to fund growth and opportunistic deployments.
• Leverage increased materially to a GAAP level of 115.4% (up from 104.4%), driving higher interest expense (~$30.8 million) and putting the company at the high end of its historical leverage range.
• Credit metrics remain healthy — weighted average internal rating was 2.11, Grade 1–2 credits rose to 70.5%, only one loan on non-accrual (~0.2% of cost), and PIK declined to ~9.1% with most PIK being contractual (not distress) and being collected in cash.

Hercules Capital Stock Down 0.0%

Shares of Hercules Capital stock traded down $0.01 during trading hours on Thursday, reaching $16.44. 2,329,004 shares of the company were exchanged, compared to its average volume of 2,452,122. The firm has a market cap of $3.08 billion, a PE ratio of 9.29 and a beta of 0.82. The stock’s fifty day moving average is $14.97 and its 200 day moving average is $16.90. Hercules Capital has a 1 year low of $13.70 and a 1 year high of $19.67. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.48 and a current ratio of 1.48.

Hercules Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 21st. Shareholders of record on Thursday, May 14th will be given a $0.07 dividend. This represents a $0.28 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Thursday, May 14th. Hercules Capital’s dividend payout ratio (DPR) is currently 87.43%.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on HTGC shares. Keefe, Bruyette & Woods decreased their price target on shares of Hercules Capital from $19.00 to $18.00 and set an “outperform” rating on the stock in a research note on Thursday, April 16th. Citizens Jmp reduced their price target on shares of Hercules Capital from $24.00 to $22.00 and set a “market outperform” rating on the stock in a research report on Wednesday, April 22nd. Wells Fargo & Company lowered their price objective on Hercules Capital from $18.00 to $17.00 and set an “overweight” rating for the company in a research report on Friday, February 13th. Piper Sandler lifted their target price on Hercules Capital from $16.50 to $17.00 and gave the company a “neutral” rating in a research report on Wednesday. Finally, Weiss Ratings cut shares of Hercules Capital from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $18.13.

Key Headlines Impacting Hercules Capital

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

• Positive Sentiment: Q1 results beat estimates and showed record new commitments, supporting investment income growth and portfolio momentum. Zacks: Hercules Capital Q1 Earnings Beat
• Positive Sentiment: Board declared a quarterly distribution alongside strong quarter results, reinforcing income profile attractive to dividend investors. TipRanks: Distribution Declared
• Neutral Sentiment: Piper Sandler nudged its price target slightly higher to $17 and kept a neutral rating — a modest vote of confidence but no upgrade. Benzinga: Piper Sandler Price Target
• Neutral Sentiment: Analyst pieces highlight strong portfolio quality and resilient income generation but caution about valuation (premium to book) and SaaS exposure—guidance for longer?term positioning, not immediate catalysts. Seeking Alpha: Portfolio vs. Price
• Neutral Sentiment: Company set the date for its 2026 annual stockholder meeting — routine corporate governance item with no immediate financial impact. TMCNet: Annual Meeting Date
• Negative Sentiment: New class action filed alleging securities law violations for purchases between May 1, 2025 and Feb 27, 2026; this formal complaint increases legal exposure and investor uncertainty. GlobeNewsWire: Bronstein Class Action
• Negative Sentiment: Multiple law firms issued investor alerts and deadline notices seeking lead plaintiffs — broad solicitation activity amplifies headline flow and selling pressure. PR Newswire: Lead Plaintiff Opportunity
• Negative Sentiment: Allegations that management misclassified software/debt exposure and that officers certified misleading statements have been raised by plaintiff?side firms — these claims, if proven, could materially affect trust and valuation. PR Newswire: Misclassification Allegation

Insider Activity at Hercules Capital

In related news, CFO Seth H. Meyer acquired 7,000 shares of the stock in a transaction dated Friday, February 27th. The stock was acquired at an average cost of $14.33 per share, with a total value of $100,310.00. Following the completion of the transaction, the chief financial officer owned 448,553 shares in the company, valued at $6,427,764.49. This represents a 1.59% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Thomas J. Fallon bought 20,000 shares of Hercules Capital stock in a transaction that occurred on Friday, February 27th. The stock was purchased at an average cost of $14.20 per share, for a total transaction of $284,000.00. Following the acquisition, the director owned 150,369 shares of the company’s stock, valued at $2,135,239.80. This represents a 15.34% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought 117,015 shares of company stock worth $1,749,620 over the last quarter. 1.80% of the stock is currently owned by insiders.

Institutional Trading of Hercules Capital

Several institutional investors have recently modified their holdings of the stock. Marshall Wace LLP acquired a new stake in Hercules Capital during the 3rd quarter worth $11,199,000. Qube Research & Technologies Ltd boosted its stake in Hercules Capital by 425.6% in the second quarter. Qube Research & Technologies Ltd now owns 580,414 shares of the financial services provider’s stock valued at $10,610,000 after acquiring an additional 469,989 shares in the last quarter. HRT Financial LP grew its holdings in shares of Hercules Capital by 100.9% during the second quarter. HRT Financial LP now owns 558,010 shares of the financial services provider’s stock worth $10,200,000 after purchasing an additional 280,198 shares during the last quarter. Credit Agricole S A acquired a new stake in shares of Hercules Capital during the third quarter worth about $5,271,000. Finally, Jump Financial LLC increased its position in shares of Hercules Capital by 150.6% during the fourth quarter. Jump Financial LLC now owns 361,092 shares of the financial services provider’s stock worth $6,796,000 after purchasing an additional 217,017 shares in the last quarter. Hedge funds and other institutional investors own 19.69% of the company’s stock.

About Hercules Capital

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.