Horizon Technology (NASDAQ:HRZN) Finance Corporation (HRZN) stock has reached a 52-week low, dipping to $10.19. This latest price movement reflects a challenging period for the investment company specializing in lending and investment in development-stage companies. Over the past year, Horizon Tech has experienced a notable decline, with its stock value decreasing by approximately 11%. This downturn mirrors broader market trends and investor sentiment, as the company navigates through a complex economic landscape marked by fluctuating interest rates and investor caution in the face of potential risks in the tech financing sector.
In other recent news, Horizon Technology Finance Corporation has been actively investing in healthcare and technology companies. The investment firm issued $20 million in convertible notes, with plans to use the proceeds to fund investments in line with its objectives and for general corporate purposes. The notes carry a 7.125% interest rate and are due on October 17, 2031. Horizon has also provided a $35 million venture loan facility to GT Medical Technologies, a company known for its FDA-cleared GammaTile® therapy for brain tumor treatment, and another $35 million loan to Vesta Healthcare, a company offering tech-enabled clinical services for chronic condition management.
In terms of financial performance, Horizon reported mixed results for Q2 2024. The company's portfolio size decreased to $647 million due to prepayments and fair value adjustments. However, Horizon managed to fund four new debt investments totaling $11 million and reported an investment income of $26 million for the quarter. Horizon's net asset value (NAV) per share stood at $9.12 as of June 30. With a new $100 million credit facility and amendments to existing credit facilities, Horizon ended the quarter with $150 million in available liquidity and a debt-to-equity ratio of 1.36:1. The company anticipates portfolio growth in the coming quarters, driven by increased market activity.
InvestingPro Insights
Horizon Technology Finance Corporation's recent stock performance aligns with several key insights from InvestingPro. The company's stock is currently trading near its 52-week low, with a price that is 74.98% of its 52-week high. This corroborates the article's observation about HRZN's challenging period.
Despite the stock's downturn, HRZN maintains a significant dividend yield of 14.33%, which is particularly noteworthy given the current market conditions. An InvestingPro Tip highlights that HRZN has maintained dividend payments for 15 consecutive years, demonstrating a commitment to shareholder returns even in difficult times.
However, investors should note that HRZN was not profitable over the last twelve months, with a negative P/E ratio of -14.93. This financial metric underscores the challenges mentioned in the article regarding the complex economic landscape HRZN is navigating.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide further context to HRZN's current market position and future prospects.
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