In-Depth Examination Of 5 Analyst Recommendations For Hercules Capital
5 analysts have expressed a variety of opinions on Hercules Capital (NYSE:HTGC) over the past quarter, offering a diverse set of opinions from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 4 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 3 | 1 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $20.5, a high estimate of $22.00, and a low estimate of $19.00. Observing a 3.54% increase, the current average has risen from the previous average price target of $19.80.
Decoding Analyst Ratings: A Detailed Look
A clear picture of Hercules Capital's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Crispin Love | Piper Sandler | Raises | Overweight | $22.00 | $21.50 |
| Devin Ryan | JMP Securities | Raises | Market Outperform | $20.00 | $19.00 |
| Finian O'Shea | Wells Fargo | Raises | Overweight | $20.00 | $19.50 |
| Crispin Love | Piper Sandler | Raises | Overweight | $21.50 | $21.00 |
| Paul Johnson | Keefe, Bruyette & Woods | Raises | Market Perform | $19.00 | $18.00 |
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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Hercules Capital compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Hercules Capital's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
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.
Unveiling the Story Behind 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: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Challenges: Hercules Capital's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -1.53%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 78.6%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Hercules Capital's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.93% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Hercules Capital's ROA stands out, surpassing industry averages. With an impressive ROA of 2.56%, 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 0.94, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Understanding the Relevance of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.