Lalia Capital LLC Makes New $4.78 Million Investment in WhiteHorse Finance, Inc. $WHF

Key Points

• Lalia Capital LLC acquired 712,769 shares of WhiteHorse Finance valued at approximately $4.78 million, giving it a 3.32% stake and making WHF its 15th-largest portfolio holding. Institutional investors collectively own 13.2% of the company.
• Analyst sentiment remains cautious: JPMorgan and B. Riley raised their price targets to $6.50 and $8.00, respectively, but ratings include two Holds and two Sells. The consensus rating is “Reduce,” with a target price of $7.25.
• WhiteHorse Finance declared a quarterly dividend of $0.25, equivalent to a 14.0% annualized yield, despite recently missing quarterly EPS and revenue estimates. Company insiders purchased nearly 60,000 shares worth about $398,000 over the past 90 days.

Lalia Capital LLC acquired a new position in WhiteHorse Finance, Inc. (NASDAQ:WHF - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 712,769 shares of the investment management company's stock, valued at approximately $4,776,000. WhiteHorse Finance comprises 2.3% of Lalia Capital LLC's investment portfolio, making the stock its 15th biggest holding. Lalia Capital LLC owned 3.32% of WhiteHorse Finance as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently modified their holdings of the company. Advisory Services Network LLC bought a new stake in WhiteHorse Finance during the third quarter worth $26,000. Kestra Advisory Services LLC bought a new position in WhiteHorse Finance during the 4th quarter valued at $44,000. O Shaughnessy Asset Management LLC bought a new position in WhiteHorse Finance during the 4th quarter valued at $88,000. Oxford Asset Management LLP purchased a new position in WhiteHorse Finance during the 2nd quarter worth $105,000. Finally, Trexquant Investment LP purchased a new position in WhiteHorse Finance during the 4th quarter worth $108,000. Institutional investors own 13.20% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. JPMorgan Chase & Co. raised their price target on shares of WhiteHorse Finance from $6.00 to $6.50 and gave the company an "underweight" rating in a research report on Wednesday. Weiss Ratings downgraded shares of WhiteHorse Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, June 2nd. Finally, B. Riley Financial increased their price objective on shares of WhiteHorse Finance from $7.50 to $8.00 and gave the company a "neutral" rating in a research note on Friday, August 14th. Two research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus target price of $7.25.

WhiteHorse Finance Stock Up 2.0%

Shares of NASDAQ:WHF opened at $7.16 on Friday. The company has a market capitalization of $153.80 million, a PE ratio of 9.06 and a beta of 0.38. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.39 and a quick ratio of 1.39. The business has a fifty day moving average price of $6.62 and a two-hundred day moving average price of $6.91. WhiteHorse Finance, Inc. has a 1 year low of $6.07 and a 1 year high of $8.97.

WhiteHorse Finance (NASDAQ:WHF - Get Free Report) last released its earnings results on Monday, August 10th. The investment management company reported $0.22 EPS for the quarter, missing analysts' consensus estimates of $0.25 by ($0.03). The business had revenue of $15.29 million for the quarter, compared to the consensus estimate of $15.66 million. WhiteHorse Finance had a return on equity of 8.94% and a net margin of 26.88%. Analysts forecast that WhiteHorse Finance, Inc. will post 0.97 earnings per share for the current year.

WhiteHorse Finance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 5th. Shareholders of record on Monday, September 21st will be given a $0.25 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $1.00 annualized dividend and a yield of 14.0%. WhiteHorse Finance's payout ratio is currently 126.58%.

Insider Activity

In related news, Director John Bolduc purchased 15,380 shares of the firm's stock in a transaction dated Thursday, June 18th. The stock was bought at an average price of $6.49 per share, for a total transaction of $99,816.20. Following the purchase, the director directly owned 317,297 shares in the company, valued at approximately $2,059,257.53. This trade represents a 5.09% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Stuart D. Aronson purchased 15,000 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were bought at an average price of $6.41 per share, with a total value of $96,150.00. Following the purchase, the chief executive officer owned 127,000 shares in the company, valued at $814,070. The trade was a 13.39% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders acquired 59,940 shares of company stock worth $397,628. Insiders own 3.80% of the company's stock.

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.

Want to see what other hedge funds are holding WHF? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for WhiteHorse Finance, Inc. (NASDAQ:WHF - Free Report).

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