Skip to main content

Hercules Capital, Inc. (HTGC) Stock Analysis

Recovery setup

SellModerate Confidence

Financial Services · Asset Management

Earnings in 4 days (2026-05-05). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. At $16.20, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.9%; Leverage penalty (D/E 1.0): -0.5.

Hercules Capital is an internally managed BDC providing senior secured loans to venture and institutional-backed technology and life sciences companies. Revenue comes from interest income and fees on its loan portfolio, managed as a non-diversified closed-end investment company... Read more

$16.20+3.9% A.UpsideScore 6.2/10#19 of 109 Asset Management
Stop $15.47Target $16.84(analyst − 13%)A.R:R 0.4:1
Analyst target$19.36+19.5%9 analysts
$16.84our TP
$16.20price
$19.36mean
$15
$25

Sell if holding. At $16.20, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.9%; Leverage penalty (D/E 1.0): -0.5. Chart setup: Death cross but MACD improving, RSI 66. Score 6.2/10, moderate confidence.

Passes 5/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 4d<=7d. Suitability: aggressive.

Thesis

Rewards
Attractive valuation
Strong growth profile
Margin of safety: 42%
Risks
Thin upside margin: 3.9%
Leverage penalty (D/E 1.0): -0.5
Earnings in 4 days (event risk)

Key Metrics

P/E (TTM)8.7
P/E (Fwd)8.1
Mkt Cap$3.0B
EV/EBITDA11.6
Profit Mgn63.8%
ROE16.2%
Rev Growth12.8%
Beta0.78
Dividend11.71%
Rating analysts15

Quality Signals

Piotroski F4/9

Options Flow

P/C2.22bearish
IV74%elevated
Max Pain$6-63.0% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerApplication Software industry24%
    10-K Item 1A: 'approximately 87.1% of the fair value of our portfolio comprised investments in five industries: 24.3% comprised investments in the "Application Software" industry'
  • MEDIUMCustomerDrug Discovery & Development industry23%
    10-K Item 1A: '23.3% comprised investments in the "Drug Discovery & Development" industry'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.5
Support Resistance
0.7
52w Position
7.5
GatesA.R:R 0.4 < 1.5@spotEARNINGS PROXIMITY 4d<=7dMomentum 5.4<5.5 (soft — BUY_NOW allowed but watch)Death cross (50MA < 200MA)Momentum 5.4>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
66 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $14.66Resistance $16.33

Price Targets

$15
$17
A.Upside+4.0%
A.R:R0.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! NEWS_MOD=-2: HOLD_IF_HOLDING → SELL_IF_HOLDING
! Reward/Risk 0.4:1 at current price — below 1.5:1 minimum
! EARNINGS_PROXIMITY:4d<=7d

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-05-05 (4d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is HTGC stock a buy right now?

Sell if holding. At $16.20, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.9%; Leverage penalty (D/E 1.0): -0.5. Chart setup: Death cross but MACD improving, RSI 66. Prior stop was $15.47. Score 6.2/10, moderate confidence.

What is the HTGC stock price target?

Take-profit target: $16.84 (+3.9% upside). Prior stop was $15.47. Stop-loss: $15.47.

What are the risks of investing in HTGC?

Thin upside margin: 3.9%; Leverage penalty (D/E 1.0): -0.5; Earnings in 4 days (event risk).

Is HTGC overvalued or undervalued?

Hercules Capital, Inc. trades at a P/E of 8.7 (forward 8.1). TrendMatrix value score: 7.7/10. Verdict: Sell.

What do analysts say about HTGC?

15 analysts cover HTGC with a consensus score of 4.1/5. Average price target: $19.

What does Hercules Capital, Inc. do?Hercules Capital is an internally managed BDC providing senior secured loans to venture and institutional-backed...

Hercules Capital is an internally managed BDC providing senior secured loans to venture and institutional-backed technology and life sciences companies. Revenue comes from interest income and fees on its loan portfolio, managed as a non-diversified closed-end investment company under the 1940 Act.

Related stocks: ETG (Eaton Vance Tax-Advantaged Glob) · AOD (Aberdeen Total Dynamic Dividend) · CRF (33138) · CET (11017) · CLM (Cornerstone Strategic Value Fd)