WhiteHorse Finance, Inc. (NASDAQ:WHF) Stock Short Interest Climbs 57.0%

Key Points

• Short interest in WhiteHorse Finance rose 57% to 410,682 shares as of September 30, representing 2.0% of shares outstanding and 3.6 days to cover.
• Analysts remain cautious, with two Hold and two Sell ratings, an average “Reduce” recommendation, and a consensus price target of $7.25.
• The company reported weaker-than-expected quarterly results, with EPS of $0.22 versus a $0.25 estimate and revenue of $14.37 million versus $15.66 million expected, while declaring a special $0.17 dividend.

WhiteHorse Finance, Inc. (NASDAQ:WHF - Get Free Report) was the recipient of a large increase in short interest during the month of September. As of September 30th, there was short interest totaling 410,682 shares, an increase of 57.0% from the September 15th total of 261,645 shares. Currently, 2.0% of the company's shares are sold short. Based on an average daily trading volume, of 114,648 shares, the days-to-cover ratio is presently 3.6 days.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Weiss Ratings restated a "sell (d+)" rating on shares of WhiteHorse Finance in a report on Friday, August 28th. JPMorgan Chase & Co. lifted their price target on shares of WhiteHorse Finance from $6.00 to $6.50 and gave the company an "underweight" rating in a report on Wednesday, August 19th. Finally, B. Riley Financial boosted their price objective on shares of WhiteHorse Finance from $7.50 to $8.00 and gave the company a "neutral" rating in a research report on Friday, August 14th. Two research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, WhiteHorse Finance currently has an average rating of "Reduce" and a consensus target price of $7.25.

WhiteHorse Finance Price Performance

WHF stock opened at $7.66 on Friday. WhiteHorse Finance has a 1 year low of $6.07 and a 1 year high of $7.84. The company has a market cap of $164.54 million, a P/E ratio of 7.18 and a beta of 0.39. The firm has a 50-day moving average of $7.10 and a 200 day moving average of $6.99. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.39 and a quick ratio of 1.39.

WhiteHorse Finance (NASDAQ:WHF - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The investment management company reported $0.22 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.03). The company had revenue of $14.37 million during the quarter, compared to analysts' expectations of $15.66 million. WhiteHorse Finance had a return on equity of 8.94% and a net margin of 26.88%. On average, sell-side analysts forecast that WhiteHorse Finance will post 0.97 EPS for the current year.

WhiteHorse Finance Announces Dividend

The company also recently declared a special dividend, which will be paid on Thursday, December 10th. Investors of record on Friday, October 30th will be paid a $0.17 dividend. The ex-dividend date of this dividend is Friday, October 30th. WhiteHorse Finance's dividend payout ratio is presently 126.58%.

Hedge Funds Weigh In On WhiteHorse Finance

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Lalia Capital LLC bought a new stake in shares of WhiteHorse Finance during the 2nd quarter valued at $4,776,000. Bank of America Corp DE bought a new position in shares of WhiteHorse Finance in the 2nd quarter worth about $1,240,000. Legal & General Group Plc purchased a new position in WhiteHorse Finance during the 2nd quarter valued at about $1,172,000. BlackRock Inc. purchased a new position in WhiteHorse Finance during the 2nd quarter valued at about $477,000. Finally, Gables Capital Management Inc. purchased a new position in WhiteHorse Finance during the 2nd quarter valued at about $294,000. Hedge funds and other institutional investors own 13.20% of the company's stock.

WhiteHorse Finance Company Profile

WhiteHorse Finance, Inc NASDAQ: WHF is a business development company that provides financing to privately owned, primarily lower-middle-market companies. The company seeks to generate income and, to a lesser extent, capital appreciation through investments in a range of industries.

WhiteHorse Finance primarily invests in senior secured loans, including first-lien and second-lien loans, as well as subordinated debt and selected equity investments. Its financing may support acquisitions, recapitalizations, growth initiatives, refinancing transactions and other general corporate purposes.

The company focuses mainly on U.S.-based middle-market businesses and works with companies that may have limited access to traditional bank financing.

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