Horizon Tech stock hits 52-week low at $8.46 amid market shifts

Published 04/04/2025, 19:42
Horizon Tech stock hits 52-week low at $8.46 amid market shifts

Horizon Technology (NASDAQ:HRZN) Finance Corporation (HRZN) stock has touched a 52-week low, dipping to $8.46, representing a 33% decline from its 52-week high of $12.63, as market conditions weigh heavily on the investment sector. With a market capitalization of $343 million, the company maintains a notable 14.65% dividend yield. The company, which specializes in lending and investment services to development-stage companies, has experienced a significant downturn over the past year, with revenue declining 11.95%. According to InvestingPro, the company has maintained dividend payments for 16 consecutive years despite current challenges, and its liquid assets exceed short-term obligations with a healthy current ratio of 5.08. This latest price level reflects investor concerns and broader market trends that have impacted the performance of finance-related stocks. As Horizon Tech navigates through these challenging economic waters, stakeholders are closely monitoring its strategies for recovery and growth, with analyst price targets ranging from $7.75 to $13.00.

In other recent news, Horizon Technology Finance reported fourth-quarter earnings that fell short of analyst expectations. The company posted a net investment income of $0.27 per share, missing the consensus estimate of $0.32 per share. Revenue for the quarter was $23.55 million, below the expected $23.8 million. For the full year 2024, Horizon reported a net investment income of $1.32 per share, which matched its regular monthly distributions. The company’s total investment portfolio was valued at $697.9 million as of December 31, 2024, and it funded seven loans totaling $59.1 million during the fourth quarter.

Additionally, Keefe, Bruyette & Woods adjusted Horizon Technology Finance’s stock price target to $8.00 from $9.00, maintaining an Underperform rating. Analyst Paul Johnson cited persistent venture capital fundraising challenges and credit issues impacting the company’s net asset value and net investment income. Despite restructuring efforts that reduced non-accruals, the company’s net asset value per share declined to $8.43 at year-end due to stressed investments. Johnson expressed concerns about the company’s ability to cover its dividend following waivers in 2026. Horizon continues to actively manage its positions to maximize value, with $100.9 million in cash and $244 million in credit facility capacity at year-end.

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