The Zacks Consensus Estimate for APAM’s 2023 earnings has been revised 2.2% upward over the past 60 days. In the past year, CSWC’s shares have rallied 5.3%. The Zacks Consensus Estimate for CSWC’s current fiscal-year earnings has been revised 2% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. APAM, carrying a Zacks Rank of 2 at present. While the company’s efforts to expand originations will likely lead to enhanced growth prospects, it is expected to result in elevated costs in the near term, which may put pressure on the bottom line.Īlso, persistent regulatory constraints amid the tough economic scenario may lead to increased costs of funding and thereby limit the company’s access to the capital markets.Ī couple of other top-ranked stocks from the finance space are Capital Southwest Corporation CSWC and Artisan Partners Asset Management Inc.
The upward trend in costs continued in the first quarter of 2023. However, Hercules Capital’s total gross operating expenses witnessed a compound annual growth rate of 9.4% over the last five years (2018-2022) because of increased compensation costs and interest expenses. Given a solid liquidity position, the company will likely be able to continue enhancing shareholder value through efficient capital deployment activities. Management plans to revisit its dividend policy at the end of every quarter and determine if any changes are required. It announced an 8.3% hike in the quarterly distribution in February 2023, following a 2.9% hike in October 2022, a 6.1% hike in July, a 3.1% hike in October 2021 and a 3.2% hike in May 2019. In order to maintain its RIC status, the company distributes approximately 90% of its taxable income. Thus, driven by the rise in demand for customized financing and a robust deal pipeline, total new commitments are expected to keep increasing.įurther, Hercules Capital’s capital deployment plan seems impressive. From the end of the first quarter to May 4, it closed new gross debt and equity commitments worth $1 million. In the first quarter of 2023, the company delivered $526 million in gross new debt and equity commitments. In 2021, it closed $2.6 billion in new debt and equity commitments, whereas in 2022, it closed $3.13 billion. We are encouraged by the company’s concentrated focus on its credit performance. Hercules Capital is a small participant in a market with huge growth prospects. Thus, supported by sufficient earnings strength and a solid balance sheet, the company is expected to be able to continue to meet debt obligations in the near term, even if the economic situation worsens. HTGC has the availability to draw on credit facilities when required.Īlso, the company has long-term issuer ratings of BBB- and Baa3 from Fitch Ratings and Moody’s Investors Service, respectively, along with a stable outlook, which render it favorable access to the debt market. Separate account and other AUM includes assets we manage in traditional separate accounts, as well as assets we manage in Artisan-branded collective investment trusts, and in our own private funds.Ģ AUM for certain strategies include the following amounts for which Artisan Partners provides investment models to managed account sponsors (reported on a one-month lag): Artisan Sustainable Emerging Markets $76 million.Looking at its fundamentals, As of Mar 31, 2023, the company had $553.1 million in liquidity, including $71.1 million in unrestricted cash and cash equivalents, and $482 million in credit facilities. Total Firm Assets Under Management ("AUM")ġ Separate account and other AUM consists of the assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds. PRELIMINARY ASSETS UNDER MANAGEMENT BY STRATEGY 2
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