Oct. 31 at 12:44 PM
$HTGC decent, decent earnings today 10/31 but pt lowered
Target Price: We are reducing our target price to
$20.00 from
$20.50. Our target price equates to a 9.6%
target yield (10.4x P/E) on our 2026 estimate of
$1.92 and a P/NAV multiple of 1.66x
Operating Earnings of
$0.49 were above our estimate (+
$0.01) and above consensus (+
$0.01). GAAP EPS were
$0.66. HTGC paid a quarterly base dividend of
$0.40 and a supplemental dividend of
$0.07. Total investment income was in line with our estimate. Total expenses were below our estimate (+
$0.01), driven by lower compensation expense (+
$0.01) and lower G&A expenses due to the higher expense offset from the RIA this quarter, which was partially offset by higher interest expense (-<
$0.01) and tax expense (-<
$0.01). A lower
weighted average share count contributed +
$0.01 to the earnings delta vs. our estimates. See Variance Table. HTGC maintained their core yield guidance of 12.0-12.5%. Approximately 75% of HTGC’s PRIME based portfolio
