Core Insights - Sound Income Strategies, LLC sold 177,473 shares of Hercules Capital for approximately $3.40 million, reducing its stake in the company [1][2] - Following the sale, Sound Income holds 2,752,867 shares of Hercules Capital, which represents 2.6% of its reportable U.S. equity assets [2][3] Company Overview - Hercules Capital reported a total revenue of $504 million and a net income of $257 million for the trailing twelve months (TTM) [4] - The company has a dividend yield of 11.26% and its stock price was $17.06 as of October 9, 2025, reflecting a 15.17% decline over the past year [4][3] Business Model - Hercules Capital specializes in providing venture debt, senior secured loans, and growth capital primarily to privately held, venture capital-backed companies in technology, life sciences, and sustainable energy sectors [5][6] - The company targets emerging and growth-stage companies in the U.S., focusing on those seeking flexible financing solutions [5][6] Market Performance - Hercules Capital's stock has underperformed the S&P 500 by 23.78 percentage points over the past year, with a total return of -6.2% compared to the S&P 500's 14.2% [3][9] - The stock has seen a significant decline of nearly 15% in the last month alone, indicating a challenging market environment [9] Institutional Perspective - The sale of Hercules Capital shares by Sound Income Strategies is viewed as an adjustment rather than a significant directional call, as the firm retains over 2.7 million shares, making Hercules its third-largest position [10][8]