Horizon Technology Finance Corp Director Buys 6,000 Shares in Insider Transaction
According to a recent SEC filing, Jonathan Joseph Goodman, a director of Horizon Technology Finance Corp (NASDAQ: HRZN), purchased 6,000 shares of the company on June 9, 2023, at a price of $4.325 per share, totaling $25,950. The transaction, disclosed in Form 4 filing, was made through the Jonathan J. Goodman Revocable Trust, according to the U.S. Securities and Exchange Commission.
Goodman’s indirect ownership now totals 8,312 shares, representing a continued confidence in the firm’s long-term prospects. At the time of the purchase, HRZN’s stock was trading at $4.44, down 29% over the preceding six months, according to Yahoo Finance. The stock currently trades with a price-to-earnings ratio of 9.07 and offers a dividend yield of 16.71%, according to InvestingPro.
Horizon Completes Merger with Monroe Capital, Expands Financial Reach
In a separate development, Horizon Technology Finance Corp finalized its merger with Monroe Capital Corporation in 2023, creating a combined entity with approximately $471.7 million in net assets. The transaction, approved by shareholders of both companies, included $141.1 million in cash from the merger, which Horizon plans to use for debt reduction and strategic investments, according to a company press release.
The merged firm has also launched a $100 million venture-lending joint venture with CR Financial Holdings to provide growth capital to small and micro-cap U.S. companies. Additionally, Horizon extended a $40 million credit facility to Hyperfine, Inc., with an initial $15 million disbursement at closing, as disclosed in a regulatory filing.
Company Replaces Auditor Amid Strategic Shifts
Horizon has also announced the appointment of Grant Thornton LLP as its new independent auditor, replacing RSM US LLP, which had served the firm since 2008. The decision followed a recommendation from Horizon’s audit committee, as reported in the company’s 8-K filing.
Context and Market Implications
Goodman’s purchase comes amid a broader restructuring of Horizon’s financial strategy. The company has maintained dividend payments for 17 consecutive years, according to its investor relations page, a factor that may appeal to income-focused investors. However, the 29% decline in HRZN’s stock over six months reflects broader challenges in the specialty finance sector, as noted by analysts at Morningstar.
For investors seeking deeper insights, InvestingPro offers a detailed research report on HRZN, highlighting its valuation metrics and growth initiatives.