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Market commentary Score 25 Bearish

Jim Cramer Warns Investors to Avoid Hercules Capital Amid Market Volatility

Mar 08, 2026 16:34 UTC
HTGC, CL=F, ^VIX
Short term

Bloomberg host Jim Cramer issued a cautionary note on Hercules Capital (HTGC), urging investors to steer clear of the business development company amid broader market turbulence and elevated volatility. The warning comes as the stock trades near its 52-week low.

  • HTGC's non-performing loans rose 12% year-over-year to $142 million as of Q4 2025
  • Net investment income declined 9% YoY to $0.31 per share in Q4 2025
  • HTGC stock is down 18% YTD, trading near its 52-week low
  • CBOE Volatility Index (VIX) rose to 26.4 amid market uncertainty
  • Crude oil futures (CL=F) increased 3.2% on inflation concerns
  • Short interest in HTGC rose 14% in two weeks following Cramer’s remarks

Jim Cramer, host of CNBC’s 'Mad Money,' recently advised viewers to avoid Hercules Capital (HTGC), a business development company focused on lending to middle-market firms. Cramer cited concerns over HTGC’s elevated credit risk profile and deteriorating portfolio quality, warning that the company’s 8.7% dividend yield may not be sustainable amid rising default rates in the leveraged loan sector. The company’s recent financial disclosures show a 12% increase in non-performing loans over the past year, with $142 million in impaired assets as of Q4 2025. HTGC’s net investment income declined 9% year-over-year, falling to $0.31 per share in the last quarter, below analyst expectations. These figures underscore growing concerns about the firm’s ability to maintain consistent payouts. The broader market environment adds pressure: the CBOE Volatility Index (VIX) has surged to 26.4, indicating heightened investor anxiety, while crude oil futures (CL=F) rose 3.2% on inflation-related fears. These macro trends have intensified scrutiny on high-yield credit instruments, which HTGC relies on for returns. Investors in HTGC have seen the stock drop 18% year-to-date, underperforming the broader financial sector. The warning has prompted increased trading volume, with short interest rising 14% in the past two weeks. Analysts are now reevaluating the company’s long-term creditworthiness, and several downgraded their ratings to 'neutral' or 'underperform'.

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