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Horizon Technology Finance Q3 net investment income per share falls

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Asset Value

$362.10 mln

Q3 Net Asset Value Per Share

$5.56


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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