WhiteHorse Finance (NASDAQ:WHF) Announces Quarterly Earnings Results

WhiteHorse Finance (NASDAQ:WHF) released its earnings results on Monday. The investment management company reported $0.22 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.03), FiscalAI reports. WhiteHorse Finance had a return on equity of 9.47% and a net margin of 13.46%.The firm had revenue of $14.37 million during the quarter, compared to analysts’ expectations of $15.66 million.

WhiteHorse Finance Stock Up 5.1%

NASDAQ:WHF traded up $0.34 on Tuesday, reaching $7.05. The stock had a trading volume of 31,621 shares, compared to its average volume of 97,148. The company has a 50-day moving average of $6.55 and a 200 day moving average of $6.89. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 1.30. The stock has a market cap of $151.43 million, a P/E ratio of 17.11 and a beta of 0.38. WhiteHorse Finance has a 12-month low of $6.07 and a 12-month high of $8.97.

WhiteHorse Finance Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 5th. Shareholders of record on Monday, September 21st will be issued a $0.25 dividend. The ex-dividend date is Monday, September 21st. This represents a $1.00 dividend on an annualized basis and a yield of 14.2%. WhiteHorse Finance’s payout ratio is currently 243.90%.

Insider Transactions at WhiteHorse Finance

In other WhiteHorse Finance news, CEO Stuart D. Aronson acquired 20,000 shares of the stock in a transaction on Thursday, May 21st. The stock was purchased at an average price of $6.67 per share, for a total transaction of $133,400.00. Following the purchase, the chief executive officer directly owned 100,000 shares in the company, valued at $667,000. This trade represents a 25.00% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director John Bolduc bought 15,380 shares of the business’s stock in a transaction on Thursday, June 18th. The stock was acquired at an average cost of $6.49 per share, for a total transaction of $99,816.20. Following the completion of the transaction, the director owned 317,297 shares in the company, valued at $2,059,257.53. This represents a 5.09% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 94,940 shares of company stock valued at $627,568 in the last three months. 3.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On WhiteHorse Finance

Hedge funds and other institutional investors have recently modified their holdings of the stock. Advisory Services Network LLC bought a new position in shares of WhiteHorse Finance during the third quarter worth about $26,000. Kestra Advisory Services LLC acquired a new stake in WhiteHorse Finance during the fourth quarter valued at approximately $44,000. O Shaughnessy Asset Management LLC acquired a new stake in WhiteHorse Finance during the fourth quarter valued at approximately $88,000. Oxford Asset Management LLP bought a new position in WhiteHorse Finance during the 2nd quarter worth approximately $105,000. Finally, Trexquant Investment LP bought a new position in WhiteHorse Finance during the 4th quarter worth approximately $108,000. Institutional investors own 13.20% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms recently commented on WHF. Weiss Ratings lowered WhiteHorse Finance from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, June 2nd. JPMorgan Chase & Co. decreased their target price on shares of WhiteHorse Finance from $6.50 to $6.00 and set an “underweight” rating on the stock in a research report on Thursday, July 2nd. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Reduce” and an average target price of $7.50.

More WhiteHorse Finance News

Here are the key news stories impacting WhiteHorse Finance this week:

• Positive Sentiment: WhiteHorse Finance declared a quarterly distribution of $0.25 per share, payable October 5 to shareholders of record on September 21. The payment equates to approximately $1.00 annually and a yield near 14.9%, which may appeal to income-focused investors. WhiteHorse Finance Second-Quarter Earnings and Distribution Announcement
• Positive Sentiment: The company’s investment portfolio fair value increased to $569.2 million from $543.0 million in the prior quarter, while it invested $23.1 million in three new portfolio companies. WhiteHorse also reported a $10.4 million net increase in net assets from operations, reversing the previous quarter’s decline. WhiteHorse Finance Reports Second-Quarter Investment Income
• Positive Sentiment: WhiteHorse Advisers agreed to reduce the incentive fee on net investment income to 17.50% for the quarter ending September 30, a move that could provide some support to future shareholder earnings.
• Neutral Sentiment: Management reported second-quarter net investment income of $4.7 million, or $0.217 per share, alongside total investment income of $14.4 million. The distribution remains attractive, but the quarter’s per-share income was below the declared payout, making dividend coverage an important issue for investors.
• Negative Sentiment: Second-quarter EPS of $0.22 fell short of the $0.25 consensus estimate and declined from $0.28 a year earlier. Revenue of $14.37 million also missed the $15.66 million analyst estimate, while total investment income decreased from $15.9 million in the prior quarter. WhiteHorse Finance Misses Second-Quarter Earnings and Revenue Estimates

WhiteHorse Finance Company Profile

WhiteHorse Finance Corporation (NASDAQ: WHF) is a closed-end management investment company organized as a business development company under the Investment Company Act of 1940. The firm’s primary objective is to generate current income and, to a lesser extent, capital appreciation by making debt and equity investments in privately held middle-market companies. WhiteHorse Finance seeks to partner with established businesses across a range of industries, providing flexible financing solutions designed to support growth initiatives, acquisitions and recapitalizations.

The company’s investment portfolio predominantly comprises senior secured loans, second-lien debt, subordinated debt and select equity interests.