HTGC stock: buy or sell?

HTGC stock price: $8.44 -2.65% At close on March 27th, 2020

Updated on:
March 27th, 2020

2

After boosting an exceptional 13.03% on Mar 26th, Hercules Capital closed yesterday at $8.44 and dropped a shocking -2.65%. On Monday HTGC collapsed a frightening -17.03%.

Hercules Capital, Inc., formerly known as Hercules Technology Growth Capital, Inc., is a business development company specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups, to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies.

Should I buy HTGC stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Hercules Capital stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean HTGC will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Hercules Capital stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for HTGC stock for the last month.

HTGC stock analysis

Daily outlook

After boosting an exceptional 13.03% on March 26th, Hercules Capital closed yesterday at $8.44 and dropped a shocking -2.65%.

After boosting an exceptional 13.03% on March/26, Hercules Capital closed yesterday at $8.44 and dropped a shocking -2.65%. For the last 19 days when HTGC stock price broke down the SMA200d line, it slid $-5.49 per share (-39.41%). From a daily perspective, HTGC is in a short term uptrend after plotting its last bottom ($6.27, on Monday) higher than the previous bottom, and its last top ($9.47, on Mar 26th) also over the previous top. Now trading in between its last bottom and last top HTGC might consolidate in a plain range, waiting to break out over $9.47 or down under $6.27. On Feb 21st, HTGC hit new all time highs, pushing higher previous ATH of $15.63 recorded on Feb/20. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

HTGC stock chart (daily)

Weekly outlook

After sliding a bloodcurdling -32.62% in a week last week, Hercules Capital closed this week at $8.44 and boosted an extraordinary 5.90%.

Not so far away is the last price record Hercules Capital marked by mid February, but since then it dropped a 48.25%. Since early March, when HTGC stock price broke down the 40-weeks moving avarage line, it slid $-5.49 per share (-39.41%). Stocks below the 200d moving average line are usually not recommended for average traders. Since late April 2019 when SMA20w and SMA40w crossed up, HTGC price slipped $-4.38 per share (-34.17%).

HTGC stock chart (weekly)

HTGC stock price history

HTGC IPO was on June 9th, 2005 at $3.37 per share1. Since then, HTGC stock grew a 150.40%, with a yearly average of 10.70%. If you had invested $1,000 in HTGC stock in 2005, it would worth $1,504.00 today.

1: Adjusted price after possible price splits or reverse-splits.

HTGC stock historical price chart

HTGC stock reached all-time highs on Feb 21st with a price of $16.31.

HTGC stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price target for Hercules Capital stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Hercules Capital presented slightly good results for 2018-Q4 . Hercules Capital appreciated Earnings per Share (EPS) by 3.20%, beating experts estimates of $0.31. Hercules Capital posted $0.32.
HTGC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.07n/a
2017-Q2-n/a0.33n/a
2017-Q32017-11-020.290.290.0%
2017-Q42018-02-220.290.290.0%
2018-Q12018-05-030.30.313.3%
2018-Q22018-08-020.280.293.6%
2018-Q32018-11-010.310.310.0%
2018-Q42019-02-210.310.323.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Hercules Capital annual sales grew a nice 3.18% to $130.88 million dollars from $126.85 marked in 2017. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) declined a -3.83% to 58.45%.

HTGC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$155 M-$98 M63.5%-
2014$115 M-25.55%$71 M61.9%-27.45%
2015$90 M-22.08%$43 M47.9%-39.71%
2016$106 M18.62%$69 M64.6%60.09%
2017$127 M19.27%$79 M62.3%14.98%
2018$131 M3.18%$76 M58.4%-3.17%

Quarterly financial results

Hercules Capital posted $-2.78 million in sales for 2018-Q4, a -105.79% less compared to previous quarter. Reported quarter income marked $-17.14 million with a profit margin of 616.47%. Profit margin boosted a 542.21% compared to previous quarter when profit margin was 74.26%. When comparing turnover to same quarter last year, Hercules Capital sales marked a dreadful correction and collapsed a -108.97%. Looking back to recent quarterly results, Hercules Capital posted 2 positive quarters in a row.
HTGC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$50 M-$-6 M-11.7%-
2017-Q2$43 M-13.83%$33 M77.1%-669.90%
2017-Q3$46 M7.11%$33 M72.2%0.40%
2017-Q4$31 M-32.27%$18 M59.2%-44.47%
2018-Q1$19 M-38.08%$6 M31.0%-67.62%
2018-Q2$66 M241.76%$52 M79.4%775.55%
2018-Q3$48 M-26.87%$36 M74.3%-31.56%
2018-Q4$-3 M-105.79%$-17 M616.5%-148.10%

Hercules Capital ownership

When you are planning to buy shares of a company, it's worth to overview its ownership structure.

Hercules Capital shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 2.69% of all shares.

In case of Hercules Capital stock, 34.31% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for HTGC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Hercules Capital:

HTGC
Market cap$933.0 M
Total shares110.6 M
Float shares107.3 M
  - Institutional holdings (%)34.3%
  - Insider holdings (%)2.7%
Shares in short selling0.0%

HTGC summary

Friday, March 27th, 2020
Open$8.66
Close$8.44
Day range$8.04 - $9.09
Previous close$8.67
Session gain-2.65%
Average true range$1.79
50d mov avg$13.01
100d mov avg$13.54
200d mov avg$13.28
Daily patternlt06a
Weekly pattern

Hercules Capital performance

To better understand Hercules Capital performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Hercules Capital performance to :
Stock3m6m12m
HTGCHercules Capital-39.80%-36.73%-32.70%

Hercules Capital competitors

Unfortunately, we could not find any public company that could be defined as Hercules Capital competitor. This doesn't mean Hercules Capital does not have any competitor in the market, it's just we could not detected it.