Horizon Technology Finance Corporation (HRZN) — Dividend Yield, NAV & Valuation Analysis
HRZN · NASDAQ
Trade HRZN Commission-Free
Analyze real-time metrics for Horizon Technology Finance Corporation and execute trades with our top-rated institutional partner platforms.
Affiliate Disclosure: Some outbound links on this site route to eToro Partners and Interactive Brokers LLC through internal tracking paths. The site is not currently enrolled in either affiliate program. If accepted into either program in the future, we may earn a commission when you sign up using those links. See our Affiliate Disclosure and Editorial Policy.
Risk Warning
eToro — U.S. Risk Warning: eToro USA LLC is a US broker-dealer registered with the SEC and a member of FINRA. Investing in stocks involves risk, including the possible loss of principal. Past performance is not an indication of future results. Cryptoassets are unregulated in most US states and are highly volatile. Crypto trading is not available for US residents in all jurisdictions. This communication is for informational purposes only and is not investment advice. See eToro USA risk disclosures at etoro.com.
Interactive Brokers — Risk Warning: Interactive Brokers LLC is a US broker-dealer registered with the SEC and a member of FINRA/SIPC. The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed income can be substantial. Margin trading is only for experienced investors with high risk tolerance. You may lose more than your initial investment. Past performance is not an indication of future results.
Not Investment Advice: This is for educational and informational purposes only. Nothing here constitutes a recommendation, solicitation, or investment advice to buy or sell any security. Past performance does not guarantee future results. Always conduct your own due diligence and consult a licensed financial advisor.
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 | $4.84 |
| NAV per Share | $8.9 |
| Premium / (Discount) to NAV | -45.6% |
| Implied per-share NAV gap | $4.06 |
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 -45.6% 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 22.9% yield. The BDC's focus on venture debt provides portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.