Is Hercules Capital Stock a Good Investment?
Hercules Capital Investment Advice | HTGC |
- Examine Hercules Capital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Hercules Capital's leadership team and their track record. Good management can help Hercules Capital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Asset Management & Custody Banks space and any emerging trends that could impact Hercules Capital's business and its evolving consumer preferences.
- Compare Hercules Capital's performance and market position to its competitors. Analyze how Hercules Capital is positioned in terms of product offerings, innovation, and market share.
- Check if Hercules Capital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Hercules Capital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Hercules Capital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Hercules Capital is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Hercules Capital Stock
Researching Hercules Capital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 26.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.74. Some equities with similar Price to Book (P/B) outperform the market in the long run. Hercules Capital has Price/Earnings To Growth (PEG) ratio of 0.52. The entity last dividend was issued on the 13th of November 2024.
To determine if Hercules Capital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Hercules Capital's research are outlined below:
| Hercules Capital has a poor financial position based on the latest SEC disclosures | |
| On 20th of November 2024 Hercules Capital paid $ 0.48 per share dividend to its current shareholders | |
| Latest headline from gurufocus.com: Remodel Health Raises More Than 100 Million to Continue Expansion in ICHRA Market |
Hercules Capital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Hercules Capital. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Hercules Capital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 15th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 15th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Hercules Capital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Hercules Capital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-02-22 | 2017-12-31 | 0.29 | 0.32 | 0.03 | 10 | ||
2015-05-07 | 2015-03-31 | 0.23 | 0.2 | -0.03 | 13 | ||
2013-08-01 | 2013-06-30 | 0.26 | 0.29 | 0.03 | 11 | ||
2011-08-04 | 2011-06-30 | 0.21 | 0.24 | 0.03 | 14 | ||
2011-03-03 | 2010-12-31 | 0.21 | 0.24 | 0.03 | 14 | ||
2010-05-06 | 2010-03-31 | 0.19 | 0.16 | -0.03 | 15 | ||
2007-02-07 | 2006-12-31 | 0.26 | 0.23 | -0.03 | 11 | ||
2021-02-23 | 2020-12-31 | 0.33 | 0.37 | 0.04 | 12 |
Know Hercules Capital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Hercules Capital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Hercules Capital backward and forwards among themselves. Hercules Capital's institutional investor refers to the entity that pools money to purchase Hercules Capital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Two Sigma Advisers, Llc | 2024-09-30 | 460.2 K | Two Sigma Investments Llc | 2024-09-30 | 457.7 K | Tectonic Advisors Llc | 2024-09-30 | 433 K | Muzinich & Co Inc | 2024-09-30 | 408.4 K | International Assets Investment Management, Llc | 2024-09-30 | 407.1 K | Advisors Asset Management | 2024-09-30 | 407 K | Sumitomo Mitsui Trust Group Inc | 2024-09-30 | 401.1 K | Citadel Advisors Llc | 2024-09-30 | 392.9 K | Franklin Resources Inc | 2024-09-30 | 387.2 K | Van Eck Associates Corporation | 2024-09-30 | 3.1 M | Sound Income Strategies | 2024-09-30 | 2.7 M |
Hercules Capital's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.22 B.Market Cap |
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Hercules Capital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.10 | |
| Return On Capital Employed | 0.12 | 0.12 | |
| Return On Assets | 0.10 | 0.10 | |
| Return On Equity | 0.19 | 0.20 |
Determining Hercules Capital's profitability involves analyzing its financial statements and using various financial metrics to determine if Hercules Capital is a good buy. For example, gross profit margin measures Hercules Capital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Hercules Capital's profitability and make more informed investment decisions.
Please note, the presentation of Hercules Capital's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Hercules Capital's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Hercules Capital's management manipulating its earnings.
Evaluate Hercules Capital's management efficiency
Hercules Capital has return on total asset (ROA) of 0.0741 % which means that it generated a profit of $0.0741 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1836 %, meaning that it created $0.1836 on every $100 dollars invested by stockholders. Hercules Capital's management efficiency ratios could be used to measure how well Hercules Capital manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.10. The current year's Return On Capital Employed is expected to grow to 0.12. At present, Hercules Capital's Other Assets are projected to increase significantly based on the last few years of reporting. The current year's Return On Tangible Assets is expected to grow to 0.10, whereas Non Current Assets Total are forecasted to decline to about 3.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 12.51 | 13.55 | |
| Tangible Book Value Per Share | 12.51 | 11.03 | |
| Enterprise Value Over EBITDA | 9.53 | 13.02 | |
| Price Book Value Ratio | 1.33 | 0.87 | |
| Enterprise Value Multiple | 9.53 | 13.02 | |
| Price Fair Value | 1.33 | 0.87 | |
| Enterprise Value | 3.5 B | 3.7 B |
At Hercules Capital, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Dividend Yield 0.0999 | Forward Dividend Yield 0.0999 | Forward Dividend Rate 1.92 | Beta 1.341 |
Basic technical analysis of Hercules Stock
As of the 22nd of December, Hercules Capital retains the Downside Deviation of 0.9891, market risk adjusted performance of 0.008, and Risk Adjusted Performance of 0.0091. Hercules Capital technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.Hercules Capital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Hercules Capital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Hercules Capital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Hercules Capital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Hercules Capital's Outstanding Corporate Bonds
Hercules Capital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Hercules Capital uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Hercules bonds can be classified according to their maturity, which is the date when Hercules Capital has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| US427096AH50 Corp BondUS427096AH50 | View | |
| Herbalife 7875 percent Corp BondUS42704MAA09 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| US427056AU02 Corp BondUS427056AU02 | View | |
| Herc Holdings 55 Corp BondUS42704LAA26 | View |
Understand Hercules Capital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Hercules Capital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0091 | |||
| Market Risk Adjusted Performance | 0.008 | |||
| Mean Deviation | 0.8016 | |||
| Semi Deviation | 0.9409 | |||
| Downside Deviation | 0.9891 | |||
| Coefficient Of Variation | 12199.21 | |||
| Standard Deviation | 1.07 | |||
| Variance | 1.14 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.01) | |||
| Total Risk Alpha | (0.03) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | (0) | |||
| Maximum Drawdown | 5.45 | |||
| Value At Risk | (1.54) | |||
| Potential Upside | 1.55 | |||
| Downside Variance | 0.9782 | |||
| Semi Variance | 0.8854 | |||
| Expected Short fall | (0.89) | |||
| Skewness | 0.6011 | |||
| Kurtosis | 1.69 |
| Risk Adjusted Performance | 0.0091 | |||
| Market Risk Adjusted Performance | 0.008 | |||
| Mean Deviation | 0.8016 | |||
| Semi Deviation | 0.9409 | |||
| Downside Deviation | 0.9891 | |||
| Coefficient Of Variation | 12199.21 | |||
| Standard Deviation | 1.07 | |||
| Variance | 1.14 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.01) | |||
| Total Risk Alpha | (0.03) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | (0) | |||
| Maximum Drawdown | 5.45 | |||
| Value At Risk | (1.54) | |||
| Potential Upside | 1.55 | |||
| Downside Variance | 0.9782 | |||
| Semi Variance | 0.8854 | |||
| Expected Short fall | (0.89) | |||
| Skewness | 0.6011 | |||
| Kurtosis | 1.69 |
Consider Hercules Capital's intraday indicators
Hercules Capital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Hercules Capital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Hercules Capital Corporate Filings
| 12th of December 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify | |
| 11th of December 2024 Other Reports | ViewVerify | |
F4 | 9th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 2nd of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Hercules Stock media impact
Far too much social signal, news, headlines, and media speculation about Hercules Capital that are available to investors today. That information is available publicly through Hercules media outlets and privately through word of mouth or via Hercules internal channels. However, regardless of the origin, that massive amount of Hercules data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Hercules Capital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Hercules Capital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Hercules Capital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Hercules Capital alpha.
Hercules Capital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Hercules Capital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Hercules Capital Historical Investor Sentiment
Investor biases related to Hercules Capital's public news can be used to forecast risks associated with an investment in Hercules. The trend in average sentiment can be used to explain how an investor holding Hercules can time the market purely based on public headlines and social activities around Hercules Capital. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Hercules Capital's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Hercules Capital and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Hercules Capital news discussions. The higher the estimate score, the more favorable the investor's outlook on Hercules Capital.
Hercules Capital Corporate Directors
| Joseph Hoffman | Independent Director | Profile | |
| Brad Koenig | Independent Director | Profile | |
| Thomas Fallon | Independent Director | Profile | |
| Janice MBA | Managing Director | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hercules Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. For information on how to trade Hercules Stock refer to our How to Trade Hercules Stock guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hercules Capital. If investors know Hercules will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hercules Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.261 | Dividend Share 1.6 | Earnings Share 2.04 | Revenue Per Share 3.13 | Quarterly Revenue Growth 0.073 |
The market value of Hercules Capital is measured differently than its book value, which is the value of Hercules that is recorded on the company's balance sheet. Investors also form their own opinion of Hercules Capital's value that differs from its market value or its book value, called intrinsic value, which is Hercules Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hercules Capital's market value can be influenced by many factors that don't directly affect Hercules Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Hercules Capital's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Hercules Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hercules Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.