Horizon Technology Finance Corporation (HRZN) — Dividend Yield, NAV & Valuation Analysis

HRZN · NASDAQ

$4.7 Stock Price
15.2% Dividend Yield
$0.2B Market Cap
$8.9 NAV
-47.2% Premium / Discount
Monthly Dividend Freq.
$0.71 Div. per Share/yr

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Overview

Horizon Technology Finance Corporation is an externally managed BDC focused on venture debt and secured loans to venture-backed companies in the technology, life sciences, and healthcare industries. HRZN structures loans in the $2 million to $25 million range and supplements interest income with equity warrants to enhance risk-adjusted returns. The portfolio is concentrated in pre-IPO and rapidly growing venture-stage borrowers.

Key Metrics

MetricValue
1-Year Total Return2.8%
3-Year Total Return12.4%
5-Year Total Return18.2%
Expense Ratio9.7%
Leverage Ratio1.3x
Portfolio Companies90
Total Assets$0.5B

Discount / Premium to NAV

Stock Price$4.7
NAV per Share$8.9
Premium / (Discount) to NAV-47.2%
Implied per-share NAV gap$4.2

The premium / discount to NAV compares the current stock price to the per-share net asset value of Horizon Technology Finance Corporation's investment portfolio. A negative reading (a discount) means the market is pricing HRZN below the value of its underlying assets and is one of the most-watched valuation metrics for any BDC. A positive reading (a premium) means the market is paying a premium over the stated NAV, often reflecting confidence in future dividend coverage and portfolio credit quality. Horizon Technology Finance Corporation currently trades at a -47.2% discount to NAV.

Investment Strategy

Horizon Technology Finance Corporation focuses on venture debt, secured loans, equity warrants in the technology, life sciences, cleantech, healthcare sectors. The company targets lower middle-market companies and maintains a portfolio of 90 investments totaling $0.5B in assets.

Management

CEO: Robert D. Pomeroy, Jr. | Employees: 28

Suitability

HRZN is suitable for income-focused investors seeking monthly dividend income with a 15.2% yield. The BDC's focus on venture debt provides portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.