Horizon Technology Finance Q3 net investment income per share falls

Overview

• US specialty finance firm's Q3 net investment income per share fell yr/yr

• Total investment income declined yr/yr due to lower interest income on debt investments

• Company repurchased $10 mln of its shares during the quarter

Outlook

• Company declares monthly distributions of $0.06 per share for Jan, Feb, and Mar 2027

• Company says investment pipeline grew 14% sequentially to $351 mln at quarter end

• Company expects to focus on portfolio growth while managing stressed debt investments

Result Drivers

• LOWER INTEREST INCOME - Co said decline in total investment income was mainly due to lower interest income on debt investments

• YIELD COMPARISON - Co said lower portfolio yield reflected prior-year recognition of accrued interest from settled non-accrual loans

• PORTFOLIO GROWTH - Co said debt investment portfolio grew for fourth consecutive quarter, funding nine loans totaling $98.4 mln

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the closed end funds peer group is "buy"

• Wall Street's median 12-month price target for Horizon Technology Finance Corporation is $5.00, about 24.1% above its November 4 closing price of $4.03

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Nov 5 - FS KKR Capital Q3 net investment income per share rises

• Nov 3 - SLR Investment Q3 investment income falls on smaller portfolio

• Nov 2 - New Mountain Finance Q3 adjusted net investment income falls YoY

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)