Horizon Technology Finance Co. (HRZN) to Issue Monthly Dividend of $0.11 on February 14th

Horizon Technology Finance Co. (NASDAQ:HRZN) announced a monthly dividend on Thursday, October 31st,Wall Street Journal reports. Shareholders of record on Thursday, January 16th will be paid a dividend of 0.11 per share by the investment management company on Friday, February 14th. This represents a $1.32 dividend on an annualized basis and a yield of 14.32%. The ex-dividend date is Thursday, January 16th.

Horizon Technology Finance has increased its dividend by an average of 3.2% annually over the last three years. Horizon Technology Finance has a payout ratio of 113.8% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Horizon Technology Finance to earn $1.26 per share next year, which means the company may not be able to cover its $1.32 annual dividend with an expected future payout ratio of 104.8%.

Horizon Technology Finance Price Performance

Shares of NASDAQ HRZN opened at $9.22 on Tuesday. The company has a market capitalization of $367.66 million, a price-to-earnings ratio of -76.83 and a beta of 1.21. The business has a 50-day moving average of $9.19 and a two-hundred day moving average of $10.44. Horizon Technology Finance has a 1 year low of $8.46 and a 1 year high of $13.71.

Horizon Technology Finance (NASDAQ:HRZN) last posted its earnings results on Tuesday, October 29th. The investment management company reported $0.32 EPS for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.03). Horizon Technology Finance had a positive return on equity of 15.78% and a negative net margin of 3.69%. The firm had revenue of $24.56 million for the quarter, compared to analyst estimates of $25.38 million. During the same quarter last year, the firm posted $0.53 EPS. As a group, equities research analysts expect that Horizon Technology Finance will post 1.38 earnings per share for the current year.

Insider Activity

In other news, President Gerald A. Michaud purchased 8,000 shares of the company’s stock in a transaction dated Monday, November 25th. The shares were purchased at an average price of $9.31 per share, for a total transaction of $74,480.00. Following the transaction, the president now owns 169,309 shares of the company’s stock, valued at approximately $1,576,266.79. This trade represents a 4.96 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Michael Balkin purchased 20,000 shares of the company’s stock in a transaction dated Monday, December 16th. The stock was purchased at an average price of $8.53 per share, for a total transaction of $170,600.00. Following the transaction, the director now directly owns 20,000 shares in the company, valued at approximately $170,600. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders own 1.34% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, Compass Point upgraded Horizon Technology Finance from a “sell” rating to a “neutral” rating and set a $8.25 price target for the company in a report on Tuesday, December 17th. Two analysts have rated the stock with a sell rating and four have assigned a hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $9.35.

Horizon Technology Finance Company Profile

Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries.