Horizon Technology Finance Q2 NII per share falls on merger costs - HRZN News | RalliesHorizon Technology Finance Q2 NII per share falls on merger costs
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HRZN• Analyst coverage
- The current average analyst rating on the shares is "hold", with 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell" recommendations.
- The average consensus recommendation for the closed-end funds peer group is "hold".
- Wall Street's median 12-month price target for Horizon Technology Finance Corporation is $5.00, about 10.9% above its August 3 closing price of $4.51.
- The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago.
Key balance sheet detail
| Metric | Actual |
|---|
| Q2 net asset value | $417.50 million |
| Q2 net asset value per share | $6.23 |
Outlook and distributions
- The company declared regular monthly distributions of for Q4 2026.
$0.06 per share
The company will pay special monthly distributions of $0.03 per share in Q4 2026.The company said increased committed backlog and a robust pipeline position it for further portfolio growth.Quarterly results and key drivers
- US specialty finance firm's Q2 net investment income per share fell year over year due to merger expenses.
- Net asset value per share declined, mainly from unrealized losses at a single portfolio company.
- The company completed its merger with Monroe Capital Corporation and expanded its stock repurchase program to $20 million.
Result drivers
- Merger expenses - Net investment income declined due to $4.4 million in non-recurring merger expenses.
- Unrealized losses - Unrealized losses on debt and equity investments in a single portfolio company reduced net asset value per share.
- Portfolio growth - Higher interest income from a larger debt investment portfolio supported total investment income.
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