Pick Up This Cheap 10.5% Yielder Even Lower Than CEO Henriquez Did

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on June 19, Hercules Technology Growth Capital's CEO, Manuel A. Henriquez, invested $53,000.00 into 4,500 shares of HTGC, for a cost per share of $11.78. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

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In trading on Monday, bargain hunters could buy shares of Hercules Technology Growth Capital ( HTGC) and achieve a cost basis even cheaper than Henriquez, with shares changing hands as low as $11.76 per share. Hercules Technology Growth Capital shares are currently trading off about 0.5% on the day. The chart below shows the one year performance of HTGC shares, versus its 200 day moving average:

Hercules Technology Growth Capital Chart

Looking at the chart above, HTGC's low point in its 52 week range is $11.40 per share, with $16.99 as the 52 week high point — that compares with a last trade of $11.76. By comparison, below is a table showing the prices at which HTGC insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
06/19/2015 Manuel A. Henriquez President & CEO 4,500 $11.78 $53,000.00

The current annualized dividend paid by Hercules Technology Growth Capital is $1.24/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 05/14/2015. Below is a long-term dividend history chart for HTGC, which can be of good help in judging whether the most recent dividend with approx. 10.5% annualized yield is likely to continue.

HTGC+Dividend+History+Chart

According to the ETF Finder at ETF Channel, HTGC makes up 4.12% of the BDC Income ETF ( BIZD) which is trading lower by about 0.5% on the day Monday.

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