WhiteHorse Finance (NASDAQ:WHF) Share Price Breaks Above 200-Day Moving Average - Time to Sell?

Key Points

• WhiteHorse Finance shares moved above their 200-day moving average, reaching $7.09 and last trading at $7.02, versus the average of $6.98.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce”, with two Holds and two Sells and an average price target of $7.25.
• The company reported weaker-than-expected quarterly results, while its $0.25 quarterly dividend implies a 14.2% annualized yield; however, the payout ratio is elevated at 126.58%.

WhiteHorse Finance, Inc. (NASDAQ:WHF - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $6.98 and traded as high as $7.09. WhiteHorse Finance shares last traded at $7.02, with a volume of 53,351 shares traded.

Wall Street Analyst Weigh In

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

WhiteHorse Finance Trading Down 0.1%

The firm has a market capitalization of $150.79 million, a PE ratio of 8.89 and a beta of 0.39. The firm has a 50 day simple moving average of $7.03 and a 200 day simple moving average of $6.98. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.29.

WhiteHorse Finance (NASDAQ:WHF - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The investment management company reported $0.22 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.03). WhiteHorse Finance had a return on equity of 8.94% and a net margin of 26.88%. The business had revenue of $14.37 million during the quarter, compared to analysts' expectations of $15.66 million. Equities analysts expect that WhiteHorse Finance, Inc. will post 0.97 earnings per share for the current fiscal year.

WhiteHorse Finance Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, October 5th. Shareholders of record on Monday, September 21st were given a $0.25 dividend. The ex-dividend date of this dividend was 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 126.58%.

Institutional Trading of WhiteHorse Finance

A number of institutional investors have recently made changes to their positions in the stock. NewEdge Wealth LLC bought a new stake in shares of WhiteHorse Finance in the second quarter worth approximately $117,000. Gables Capital Management Inc. bought a new position in WhiteHorse Finance during the second quarter valued at approximately $294,000. BlackRock Inc. bought a new position in WhiteHorse Finance during the second quarter valued at approximately $477,000. Legal & General Group Plc purchased a new stake in WhiteHorse Finance in the second quarter worth approximately $1,172,000. Finally, Bank of America Corp DE purchased a new stake in WhiteHorse Finance in the second quarter worth approximately $1,240,000. Hedge funds and other institutional investors own 13.20% of the company's stock.

About WhiteHorse Finance

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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