Profile
Sector:
Financial ServicesIndustry:
Asset ManagementCountry:
United StatesIPO:
29 October 2010Website:
http://horizontechfinance.comNext earnings report:
27 February 2025Last dividends:
17 October 2024Next dividends:
18 February 2025Price
after hours | Fri, 01 Nov 2024 23:54:02 GMTAnalysts recommendations
Institutional Ownership
HRZN Latest News
I have been covering Horizon Technology since December 2023, when I issued my first bearish thesis, indicating the risks are too high and the yield does not justify them. Since then, HRZN has underperformed the BDC index by ~29%, even though the dividend has remained intact. In this article, I assess the Q3 2024 earnings report and explain why, in my opinion, the BDC is still too risky to enter.
Horizon Technology Finance (NASDAQ:HRZN ) Q3 2024 Earnings Conference Call October 30, 2024 9:00 AM ET Company Participants Megan Bacon - Director, Investor Relations and Marketing Robert Pomeroy - Chairman and CEO Jerry Michaud - President Dan Devorsetz - COO and CIO Dan Trolio - CFO Conference Call Participants Douglas Harter - UBS Bryce Rowe - B. Riley Securities Christopher Nolan - Ladenburg Thalmann Paul Johnson - KBW Operator Greetings, and welcome to the Horizon Technology Finance Corporation Third Quarter 2024 Earnings Call.
Horizon Technology Finance (HRZN) came out with quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.53 per share a year ago.
FARMINGTON, Conn.--(BUSINESS WIRE)--Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”) (the “Company”), an affiliate of Monroe Capital, and a leading specialty finance company that provides capital in the form of secured loans to venture capital-backed companies in the technology, life science, healthcare information and services, and sustainability industries, announced today that its board of directors has declared monthly cash distributions of $0.11 per share, payable in each.
TEMPE, Ariz. , Sept. 12, 2024 /PRNewswire/ -- GT Medical Technologies, Inc. ("GT MedTech" or the "Company"), a medical device company with a corporate purpose of improving the lives of patients with brain tumors, today announced it has secured a $35 million venture loan facility, of which $15 million has been initially funded from Horizon Technology Finance Corporation (NASDAQ: HRZN), an affiliate of Monroe Capital.
HRZN has underperformed the BDC market since my initial relatively bearish thesis back in December, 2023. After digesting Q2, 2024 earnings results, the case has gone from bad to worse. In this article I elaborate on the key reasons why I continue to remain pessimistic on HRZN and share my view on the potential dividend cut.
Horizon Technology Finance operates as a BDC with a dividend yield of about 12.1%, making it attractive for income investors. However, the distribution may be vulnerable. Net investment income is down on a year-over-year basis. Future interest rate cuts could further reduce NII per share. The price still trades at a high premium to NAV. I believe this premium is unjustified when looking at the portfolio's performance. A price reduction is needed.
Horizon Technology Finance (HRZN) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.54 per share a year ago.
Horizon Technology Finance has underperformed the BDC market by 15% since December, with worsening portfolio quality and yield compression. Q1, 2024 earnings report shows continued decline in net investment income, with NAV dropping and portfolio stagnating at lower yield levels. Despite sourcing fresh equity, HRZN's underlying portfolio profile has deteriorated, making it still a risky investment choice with uncertain fundamentals.
Horizon Technology Finance is a well-run BDC that concentrates on technology and life science investments. The BDC's stock has been negatively affected in 2024 by worries about losses in the sector. Even though the valuation has dropped, the 12% dividend yield is more secure than it seems, and there is a possibility for the stock to be revalued higher.
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What type of business is Horizon Technology Finance?
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. It seeks to invest in companies in the United States.
What sector is Horizon Technology Finance in?
Horizon Technology Finance is in the Financial Services sector
What industry is Horizon Technology Finance in?
Horizon Technology Finance is in the Asset Management industry
What country is Horizon Technology Finance from?
Horizon Technology Finance is headquartered in United States
When did Horizon Technology Finance go public?
Horizon Technology Finance initial public offering (IPO) was on 29 October 2010
What is Horizon Technology Finance website?
http://horizontechfinance.com
Is Horizon Technology Finance in the S&P 500?
No, Horizon Technology Finance is not included in the S&P 500 index
Is Horizon Technology Finance in the NASDAQ 100?
No, Horizon Technology Finance is not included in the NASDAQ 100 index
Is Horizon Technology Finance in the Dow Jones?
No, Horizon Technology Finance is not included in the Dow Jones index
When was Horizon Technology Finance the previous earnings report?
No data
When does Horizon Technology Finance earnings report?
The next expected earnings date for Horizon Technology Finance is 27 February 2025