Horizon Technology Finance Corporation (HRZN) — Dividend Yield, NAV & Valuation Analysis
HRZN · NASDAQ
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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
| Metric | Value |
|---|---|
| 1-Year Total Return | 2.8% |
| 3-Year Total Return | 12.4% |
| 5-Year Total Return | 18.2% |
| Expense Ratio | 9.7% |
| Leverage Ratio | 1.3x |
| Portfolio Companies | 90 |
| 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.