Financial Position and Debt - As of December 31, 2024, the company had $283.6 million and $116.0 million in borrowings under the SMBC Facility and MUFG Bank Facility, respectively, with approximately $1.10 billion in aggregate principal outstanding Notes[223]. - The actual asset coverage ratio was 231.7% as of December 31, 2024, with total assets of $3.8 billion and $1.8 billion in debt outstanding[225]. - The company had $175.0 million and $104.0 million in SBA debentures outstanding as of December 31, 2024, incurred by wholly owned subsidiaries[223]. - The average cost of funds for the company was approximately 5.0% for the period ended December 31, 2024[225]. - The company must maintain an asset coverage ratio of at least 150% after issuing senior securities, or it may face restrictions on issuing debt or paying dividends[243]. - The company has $175.0 million and $104.0 million of SBIC debentures outstanding through its subsidiaries HC IV and SBIC V, respectively[276]. - The MUFG Bank Facility matures in January 2026, and the SMBC Facility matures in November 2028, with uncertainty regarding renewal or replacement impacting liquidity[275]. - The company must generate sufficient cash flow to meet interest payments on debentures, with the SBA having a superior claim to assets in case of liquidation[277]. - The Unsecured Notes are effectively subordinated to any secured indebtedness, impacting their priority in liquidation scenarios[260]. - The Unsecured Notes are structurally subordinated to all indebtedness and liabilities of Hercules Capital's subsidiaries, which may incur substantial additional indebtedness in the future[261]. Operational Risks and Compliance - The company is subject to various local, state, and federal laws and regulations, and failure to comply could negatively impact its reputation and business results[238]. - Operating under the constraints of being a BDC may hinder the achievement of investment objectives, as BDCs must invest at least 70% of total assets in qualifying assets[240]. - The company is subject to financial and operational covenants under its existing indebtedness, which could restrict business activities[220]. - The company may face significant risks if it fails to maintain its status as a BDC, which could reduce its operating flexibility and subject it to more regulatory restrictions[239]. - Compliance with SBIC regulations is crucial for maintaining RIC status, requiring the distribution of at least 90% of net ordinary taxable income[280]. - The company may face entity-level tax if it fails to maintain RIC status due to limitations on cash distributions from SBIC subsidiaries[279]. - The company is subject to asset coverage ratio requirements under the 1940 Act, which could restrict necessary distributions[280]. Market and Economic Conditions - The broader fundamentals of the United States economy remain mixed, with potential contraction likely to negatively impact small to mid-sized companies' financial results and increase defaults[294]. - Future market disruptions could adversely affect the company’s business and operations, impacting investment originations and financial condition[288]. - Legislative or regulatory tax changes could diminish the value of investments and affect stockholder taxation[286]. - Uncertainty regarding U.S. trade policies may negatively impact portfolio companies, affecting their financial condition and operations[293]. - The U.S. and global capital markets may experience extreme volatility and disruption during economic downturns, affecting financial markets worldwide[290]. - Deterioration in the U.S. economy could lead to limited growth or deterioration in the financial results of small to mid-sized companies in which the company invests[294]. Investment Performance and Returns - The Adviser Subsidiary derives revenues primarily from dividend income, which may be adversely affected by market factors and performance, impacting overall operating results[237]. - The company may pursue growth through acquisitions or strategic investments, but the success of such integrations is uncertain[242]. - The company cannot assure consistent cash distributions to stockholders, which may be affected by various risk factors[249]. - Any distributions may include a return of capital, impacting stockholders' tax liabilities[250]. - The company anticipates that approximately 50% of its warrants may not realize any exit or generate returns, leading to potential realized losses[208]. - The company’s investments may involve a high degree of risk, potentially resulting in higher volatility or loss of principal[245]. - The company may need to sell investments at disadvantageous prices to meet distribution requirements, risking RIC status[283]. Stockholder and Market Dynamics - Stockholders have authorized the company to issue common stock below the current NAV per share until August 15, 2025, subject to Board approval[243]. - The market price of the company's securities may be volatile, influenced by factors such as regulatory changes and market trends[247]. - The company may experience dilution of stockholder ownership if shares are sold below NAV, affecting their voting power and economic interests[252]. - The company has provisions in its charter that may deter takeover attempts, potentially impacting stock price[258]. - The issuance of preferred stock could adversely affect the market value of the company's common stock[259]. - The company's stock may trade at a discount to its NAV, which could limit its ability to issue additional common stock at favorable terms[246]. Technological and Cybersecurity Risks - The company is highly dependent on information systems, and any failures could disrupt business operations and negatively affect stock prices[300]. - Cybersecurity risks and system failures could significantly disrupt the company's operations and negatively affect its financial condition[301]. - Technological innovations, including artificial intelligence and machine learning, may disrupt traditional market practices and increase competition[298]. - Compliance with privacy and information security laws may result in increased costs and divert management's attention[304]. Legal and Litigation Risks - The company may be subject to litigation, particularly if the value of shares fluctuates significantly, which could divert management's attention and resources[306]. - The company may face litigation risks, particularly related to significant fluctuations in the value of its common stock[305].

Hercules Capital (HTGC) closed at $20.83 in the latest trading session, marking a -0.48% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.36%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 0.51%.Shares of the specialty finance company have appreciated by 4.75% over the course of the past month, underperforming the Finance sector's gain of 5.23% and outperforming the S&P 500's gain of 2.11%.Investors will be eagerly watching for the performanc ...

Hercules Capital (HTGC) ended the recent trading session at $21.15, demonstrating a +0.43% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.28%.The specialty finance company's shares have seen an increase of 3.34% over the last month, not keeping up with the Finance sector's gain of 5.73% and outstripping the S&P 500's gain of 2.87%.The investment communi ...

The most recent trading session ended with Hercules Capital (HTGC) standing at $21.06, reflecting a +1.59% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.25%.Heading into today, shares of the specialty finance company had gained 3.19% over the past month, lagging the Finance sector's gain of 4.18% and outpacing the S&P 500's gain of 1.24% in that time.Analysts an ...

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In the latest trading session, Hercules Capital (HTGC) closed at $19.98, marking a -0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.Shares of the specialty finance company witnessed a gain of 2.99% over the previous month, beating the performance of the Finance sector with its loss of 4.27% and the S&P 500's loss of 2.7%.Analysts and investors alike will be keeping a close eye on ...

Hercules Capital (HTGC) closed the most recent trading day at $20.08, moving +1.11% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 1.49%.Prior to today's trading, shares of the specialty finance company had gained 5.14% over the past month. This has outpaced the Finance sector's loss of 4.01% and the S&P 500's gain of 0.4% in that time.The investment community will ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Hercules Capital (HTGC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Hercules Capital currently has an average brokerage rec ...

INDIANAPOLIS, Dec. 19, 2024 /PRNewswire/ -- Remodel Health, the #1 Individual Coverage Health Reimbursement Arrangement (ICHRA) provider for brokers, today announced it has raised more than $100 million from Oak HC/FT and Hercules Capital, Inc. (NYSE: HTGC)  in growth funding. Remodel offers an end-to-end, white-labeled tech platform that supports employers and employees with everything they need to launch and access their ICHRA plans, including plan creation and administration, call center support, automa ...

Hercules Capital Inc.’s (HTGC) third-quarter 2024 net investment income of 51 cents per share matched the Zacks Consensus Estimate. The bottom line, however, declined 1.9% from the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results were primarily aided by an increase in the total investment income. Also, the balance sheet position remained decent, and new commitments were robust. However, a rise in operating expenses was a headwind.Net investment income was $83 ...