Horizon Technology Finance Stock Investment and Financial Analysis

Horizon Technology Finance is a business development company that provides financing to venture capital and private equity-backed companies.

The company's investment strategy focuses on providing senior secured loans to companies in various industries.

Horizon Technology Finance has a strong track record of generating returns for its investors, with a net investment income of 12.5% in 2020.

The company's financials are stable, with a debt-to-equity ratio of 0.85 and a current ratio of 2.12.

Its portfolio companies are diverse, with investments in industries such as software, healthcare, and technology.

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Horizon Technology Finance's share price is 9.22 USD today.

The stock price of HRZN is 9.22, which is a Buy signal when compared to its 8-day simple moving average of 9.16. This is a clear indication that the stock is undervalued.

A 20-day SMA of 9.03 and a 50-day simple moving average of 9.22 also suggest a Buy signal. However, a 200-day simple moving average of 10.84 creates a Sell signal, indicating a potential long-term decline.

Here's a summary of the technical indicators:

The Horizon Technology Finance stock price is forecast to RISE/FALL based on technical indicators, but it is currently overvalued according to simple moving average, exponential moving average, oscillators, and other technical indicators.

Technical analysis is a powerful tool for evaluating a stock's performance and predicting future trends. According to the Horizon Technology Finance technical analysis indicators, the stock price is currently 9.22 USD.

The Moving Averages section shows that the 8-day SMA is 9.16, indicating a Buy signal. The 20-day SMA is also 9.03, making it a Buy. However, the 50-day SMA is 9.22, which is the same as the current stock price, making it a neutral signal.

The Exponential Moving Averages (EMAs) also indicate a Buy signal, with the 8-day EMA being 9.15 and the 20-day EMA being 9.12. On the other hand, the 50-day EMA is 9.36, making it a Sell signal.

The MACD (12, 26) indicator shows a Sell signal with a level of -0.02. In contrast, the Relative Strength Index (14 RSI) is 53.19, indicating a Buy signal.

Here's a summary of the technical indicators:

Overall, the technical indicators suggest that Horizon Technology Finance is currently overvalued, with a 12-month stock price forecast of $9.35, which is an increase of 1.74% from the latest price.

Fundamental analysis is a crucial aspect of stock analysis, and it involves examining a company's financial statements and other data to estimate its future performance. Analysts use this data to gauge a company's financial health and make informed investment decisions.

In the case of Horizon Technology Finance, analysts estimate a decrease in earnings this quarter of $0.04 per share.

The projected decrease in earnings is a key indicator of a company's financial performance. It suggests that the company may be experiencing some challenges or difficulties that are impacting its bottom line.

Here's a breakdown of the estimated earnings decreases for Horizon Technology Finance:

The projected decrease in earnings over the next year is a significant concern for investors. It suggests that the company may be facing some long-term challenges that could impact its financial performance.

Horizon Technology Finance's dividend yield is a whopping 13.71%, which is 374% higher than the Financial Services sector average of 2.89%.

This significant difference is a major draw for investors looking for high dividend returns.

When considering an investment in Horizon Technology Finance stock, it's essential to understand the current rating. Horizon Technology Finance stock is rated a Sell.

The current share price is $9.22, which may be a factor in your investment decision.

The Score for HRZN is 28, indicating higher risk than normal. This score is 44% below its historic median score of 50.

In making investment decisions, it's crucial to consider the current market conditions and the potential risks involved.

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Horizon Technology Finance's revenue is expected to reach $100 million in 2025, with a slight increase to $102 million in 2026.

The company's dividend is estimated to be $1.32 in 2025 and $1.25 in 2026. This works out to a net profit of $50 million in 2025 and $48 million in 2026.

Here are the average earnings estimates for Horizon Technology Finance as of March 2025:

These estimates are based on data from 8 analysts as of March 2025.

Horizon Technology Finance pays a dividend per share of $1.26, which is an annualized amount.

The dividend yield of Horizon Technology Finance is more than the Financial Services sector average, making it a potentially attractive option for income investors.

Horizon Technology Finance's dividend yield is about 12.1%, a significant percentage that could be a draw for those seeking regular income.

This high yield may be due in part to the company's status as a Business Development Company (BDC), which often focuses on providing financing to small businesses and entrepreneurs.

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The income statement is a crucial financial document that provides a snapshot of a company's revenue and expenses over a specific period. It's like a report card for the company's financial performance.

Let's take a look at the sales figures for the company. In 2023, sales reached $83.77 million, a significant increase of 20.18% from the previous year. This is a great sign, indicating that the company is growing and expanding its customer base.

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The gross profit on sales also showed a notable increase, rising to $66.22 million in 2023, up 33.17% from the previous year. This suggests that the company is able to maintain a healthy profit margin despite the growth in sales.

Here's a breakdown of the company's operating income over the years:

As you can see, the operating income has been quite volatile over the years, with significant fluctuations in each year. In 2023, the operating income actually decreased by 70.42% from the previous year, which is a concerning trend.

The income before tax and income after tax figures also show significant fluctuations, with some years experiencing large increases and others experiencing large decreases. For example, in 2023, the income before tax was -$17.19 million, a significant decrease from the previous year.

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In the world of BDCs, Q2 earnings can be a make-or-break moment for investors. Horizon Technology Finance, for example, has a dividend yield of about 12.1%, making it attractive for income investors.

However, the distribution may be vulnerable, especially with net investment income down. This is a crucial factor to consider when evaluating the company's financial health.

Let's take a closer look at the recent Q2 earnings data from some BDCs. We'll examine two BDCs that improved and two that declined after Q2 earnings.

Here are the BDCs that improved:

And here are the BDCs that declined:

It's worth noting that the recent BDC market dynamics indicate that quality will play an important role over the foreseeable future.