Where Hercules Capital Stands With Analysts

In the latest quarter, 4 analysts provided ratings for Hercules Capital HTGC, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $21.62, a high estimate of $22.00, and a low estimate of $21.00. Witnessing a positive shift, the current average has risen by 3.54% from the previous average price target of $20.88.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Hercules Capital. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Hercules Capital. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Hercules Capital compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Hercules Capital's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Hercules Capital's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Hercules Capital analyst ratings.

About Hercules Capital

Hercules Capital Inc is a specialty finance company engaged in providing senior secured loans to high-growth, venture capital-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. It invests majorly in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The company lends to and invests in portfolio companies in various technology-related industries including technology, drug discovery and development, biotechnology, life sciences, healthcare, and sustainable and renewable technology.

Financial Insights: Hercules Capital

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Hercules Capital showcased positive performance, achieving a revenue growth rate of 75.62% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Hercules Capital's net margin is impressive, surpassing industry averages. With a net margin of 75.99%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Hercules Capital's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.71%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Hercules Capital's ROA stands out, surpassing industry averages. With an impressive ROA of 1.88%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Hercules Capital's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.95, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.