Horizon Technology Finance Corporation (HRZN) Bundle
Who Invests in Horizon Technology Finance Corporation (HRZN) and Why?
Who Invests in HRZN and Why?
Understanding the investor landscape for Horizon Technology Finance Corporation (HRZN) involves analyzing the types of investors, their motivations, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who purchase shares through brokerage accounts. As of September 30, 2024, retail investors owned approximately 37.5% of HRZN's outstanding shares.
- Institutional Investors: Entities such as pension funds, insurance companies, and mutual funds. They accounted for roughly 55% of the total share ownership as of the same date.
- Hedge Funds: These funds often engage in more aggressive trading strategies. Hedge funds held around 7.5% of HRZN's shares, focusing on short-term gains through volatility trading.
Investment Motivations
Investors are attracted to HRZN for several reasons:
- Growth Prospects: HRZN's focus on technology and healthcare sectors positions it for significant growth, especially in emerging markets.
- Dividends: The company declared distributions of $0.33 per share for the quarter ending September 30, 2024, appealing to income-focused investors.
- Market Position: HRZN operates in a niche market with a strong portfolio of debt investments in technology and healthcare startups, enhancing its attractiveness.
Investment Strategies
Different investor types employ various strategies:
- Long-Term Holding: Institutional investors typically adopt this strategy, focusing on HRZN’s performance over several years.
- Short-Term Trading: Hedge funds often engage in this strategy, capitalizing on price fluctuations and market volatility.
- Value Investing: Retail investors may look for shares they perceive to be undervalued, particularly after declines in HRZN’s stock price, which was $10.65 as of September 30, 2024.
Financial Snapshot
| Metric | Value (as of September 30, 2024) |
|---|---|
| Net Asset Value per Share | $9.06 |
| Total Assets | $342.5 million |
| Total Liabilities | $705.97 million |
| Net Investment Income per Share | $0.32 |
| Distributions Declared per Share | $0.33 |
| Weighted Average Shares Outstanding | 36,571,000 |
As of September 30, 2024, HRZN had a total return based on market value of (11.2)% over the previous year, with a portfolio turnover ratio of 13.4%.
Institutional Ownership and Major Shareholders of Horizon Technology Finance Corporation (HRZN)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following are the largest institutional investors in Horizon Technology Finance Corporation:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 4,400,000 | 11.6% |
| Wellington Management Group LLP | 3,000,000 | 7.9% |
| State Street Corporation | 2,800,000 | 7.4% |
| Invesco Ltd. | 2,500,000 | 6.6% |
| Nuveen LLC | 2,200,000 | 5.8% |
Recent changes in ownership indicate that institutional investors have been active in adjusting their stakes:
- BlackRock, Inc. increased its holding by 300,000 shares in Q3 2024.
- Invesco Ltd. decreased its holdings by 100,000 shares during the same period.
- Wellington Management maintained its position without any changes in shareholding.
Institutional investors play a significant role in the company’s stock price and strategic direction. Their influence includes:
- Providing liquidity to the stock, which can stabilize price movements.
- Engaging in shareholder activism, potentially influencing management decisions.
- Contributing to the credibility of the company in the eyes of retail investors.
In conclusion, as of September 30, 2024, the total number of shares outstanding is 37,803,064, with the net asset value per share reported at $9.06.
Key Investors and Their Influence on Horizon Technology Finance Corporation (HRZN)
Notable Investors
Key investors in Horizon Technology Finance Corporation include institutional investment firms and notable funds. Some of these investors are:
- New York Life Investment Management LLC: A significant stakeholder in the company.
- BlackRock, Inc.: Known for its extensive portfolio, it has shown interest in this corporation.
- Nuveen Alternative Advisors LLC: Involved through various investment vehicles.
Investor Influence
These investors exert considerable influence over company strategies and stock movements. For example:
- New York Life has been instrumental in shaping financial strategies, particularly in funding decisions.
- BlackRock's voting power can affect board decisions and corporate governance.
- Nuveen's involvement often leads to increased visibility and credibility in the market.
Recent Moves
Recent notable moves by these investors include:
- On June 2, 2023, the company completed a follow-on public offering of 3,250,000 shares at a public offering price of $12.50 per share, generating approximately $38.9 million in net proceeds.
- As of September 30, 2024, the company sold 4,279,141 shares under the 2023 Equity Distribution Agreement, resulting in net proceeds of approximately $47.5 million.
Financial Overview
As of September 30, 2024, the following financial statistics are relevant:
| Metric | Value |
|---|---|
| Net Asset Value per Share | $9.06 |
| Total Investment Income | $76.4 million |
| Total Expenses | $37.9 million |
| Net Investment Income | $37.4 million |
| Net Realized Loss on Investments | ($31.4 million) |
| Net Unrealized Appreciation on Investments | $0.9 million |
Conclusion on Investor Impact
The involvement of these key investors has a profound impact on the company's strategic direction, stock performance, and market perception, which is reflected in the financial statistics and recent corporate actions.
Market Impact and Investor Sentiment of Horizon Technology Finance Corporation (HRZN)
Market Impact and Investor Sentiment
Current Sentiment of Major Shareholders: As of 2024, the sentiment among major shareholders towards Horizon Technology Finance Corporation (HRZN) is predominantly neutral. The stock has seen fluctuations influenced by broader market trends and specific company performance metrics.
Recent Market Reactions: The stock price of HRZN has responded variably to ownership changes and significant investor moves. For instance, during the three months ended September 30, 2024, the company sold 1,709,096 shares of common stock under its equity distribution agreement, resulting in net proceeds of approximately $18.4 million. This follows a previous period where 1,186,303 shares were sold for around $13.9 million. Such movements indicate active trading and a responsive market environment.
Analyst Perspectives: Analysts have noted that key investor actions, such as the recent follow-on public offering of 3,250,000 shares at a price of $12.50 per share, which garnered total net proceeds of $38.9 million, may have a significant impact on the company’s future. The sentiment is mixed, with some analysts expressing cautious optimism regarding the company’s ability to leverage these funds for growth, while others highlight the risks associated with its current debt levels and market volatility.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Investment Income per Share | $0.32 | $0.53 | -39.6% |
| Distributions Declared per Share | $0.33 | $0.33 | 0% |
| Net Asset Value (NAV) at End of Period | $9.06 | $10.41 | -12.9% |
| Total Debt Investments | $633,284 | $670,172 | -5.5% |
| Total Fair Value of Investments | $684,000 | $709,085 | -3.5% |
In summary, the stock's performance and investor sentiment are shaped by a combination of operational results, market dynamics, and strategic capital decisions. The company's ability to manage its investments and respond to shareholder expectations will likely continue to influence market reactions going forward.
Horizon Technology Finance Corporation (HRZN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Horizon Technology Finance Corporation (HRZN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Horizon Technology Finance Corporation (HRZN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Horizon Technology Finance Corporation (HRZN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.