Hercules Capital is part of the financial services sector and banking industry. The company CEO is Scott Bluestein. Hercules Capital Inc is a specialty finance company engaged in providing senior secured venture growth loans to high-growth, venture capital-backed companies in technology, life sciences and sustainable and renewable technology industries.



Previous Intraday Performance:

The HTGC shares had a previous change of 1.09% which opened at 12.87 and closed at 13.01. It moved to an intraday high of 13.03 and a low of 12.85.

SeekingAlpha:  Hercules Capital: I Am Passing Over This 9%+ Yielder (For Now)

Historical Performance:

Over the last five trading days, HTGC shares returned -0.31% and in the past 30 trading days it returned 3.90%. Over three months, it changed -1.04%. In one year it has changed 15.87% and within that year its 52 week high was 14.17 and its 52 week low was 10.57. HTGC stock is 23.09% above its 52 week low.

Our calculations result in a 200 day moving average of 12.19 and a 50 day moving average of 12.77. Right now, HTGC stock is trading 6.75% above its 200 day moving average.

SeekingAlpha:  Hercules Capital: I Am Passing Over This 9%+ Yielder (For Now)

Liquidity:

The company has a market cap of $1.3b with 97.2m shares outstanding and a float of 93.4m shares. Trading volume was 376,248 shares and has experienced an average volume of 489,733 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Hercules Capital was 0.82 which ended on 31st of December 2018, which according to the previous close, that is a PE of 15.87. Based on 6 analyst estimates, the consensus EPS for the next quarter is 0.32. The trailing twelve month EPS reported is 1.23 (trailing twelve month diluted EPS is 1.42).

Below was the last reported quarterly diluted earnings per share:

1stQtr 2019Reported 05-02-2019: 0.64
4thQtr 2018Reported 02-21-2019: -0.18
3rdQtr 2018Reported 11-01-2018: 0.37
2ndQtr 2018Reported 08-02-2018: 0.59
1stQtr 2018Reported 05-03-2018: 0.07

Base on our calculations, the intrinsic value per share is 17.19, which means it might be undervalued and has a margin of safety of 24.33%.

The growth of the EPS is critical in understanding the current valuation of Hercules Capital; the EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been -6.40% over the last twelve months.



Indicators Also to Watch:

Based on the latest filings, there is 40.40% of institutional ownership. Short-interest was 1,874,545, which was 1.93% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.84. This stock has some short interest, but it might be normal and no need to worry if long the position.

The beta was calculated to be 0.91.

Fundamental Numbers:

Based on last reported financials, the company’s return on assets is 7.03%, profit margin is 57.65%, price-to-sales is 5.46 and price-to-book is 1.26.

Company Score Card:

Results are out of six:
 1  : Growth Expectations Result
 2  : Financial Safety Result
 3  : Past Performance Result
 4  : Valuation Result
 4  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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