Horizon Technology (NASDAQ:) Finance Corporation (HRZN) stock hit a new 52-week low, falling to $10.19. The latest price action reflects tough times for the investment firm, which specializes in financing and investing in development-stage companies. This past year, horizon tech experienced a notable decline, with the stock price down about 11%. This weakness reflects broader market trends and investor sentiment as we navigate a complex economic landscape characterized by fluctuating interest rates and investor caution in the face of potential risks in the high-tech financial sector. There is.
In other recent news, Horizon Technology Finance Corporation is actively investing in healthcare and technology companies. The investment company plans to issue $20 million in convertible notes and use the proceeds for targeted investments and general corporate purposes. The bond has an interest rate of 7.125% and a maturity date of October 17, 2031. Horizon also provided a $35 million venture financing facility to GT Medical Technologies, known for its FDA-cleared GammaTile® therapy for the treatment of brain tumors. $35 million in financing for Vesta Healthcare, a company that provides technology-enabled clinical services for chronic disease management.
In terms of financial performance, Horizon reported mixed results in Q2 2024. The company’s portfolio size decreased to $647 million due to prepayments and fair value adjustments. However, Horizon was able to fund four new debt investments totaling $11 million and reported investment income of $26 million for the quarter. Horizon’s net asset value (NAV) per share was $9.12 as of June 30th. With the establishment of a new $100 million credit facility and amendments to existing credit facilities, Horizon now has $150 million of available liquidity and a debt-to-equity ratio of $1 billion. 1.36:1. The company expects its portfolio to expand in the coming quarters due to increased market activity.
Investment Pro Insights
Horizon Technology Finance Corporation’s recent stock performance is consistent with some key insights from InvestingPro. The company’s stock is currently trading near its 52-week low and its price is 74.98% of its 52-week high. This confirms the article’s view on difficult times for HRZN.
Despite the stock price weakness, HRZN maintains a significant dividend yield of 14.33%, which is especially noteworthy considering current market conditions. The InvestingPro Tip highlights that HRZN has maintained its dividend payments for 15 consecutive years, demonstrating its commitment to shareholder returns even during difficult times.
However, investors should note that HRZN did not make a profit in the last twelve months, giving it a negative P/E ratio of -14.93. This financial indicator highlights the challenges mentioned in the article regarding the complex economic situation facing HRZN.
For readers interested in a more comprehensive analysis, InvestingPro provides additional tips and insights that can provide further context to HRZN’s current market position and future prospects.
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