WhiteHorse Finance, Inc. (NASDAQ:WHF) Short Interest Down 16.7% in March

Key Points

• Short interest fell 16.7% in March to 406,377 shares (about 1.9% of shares outstanding) with a days-to-cover of 4.0, signaling reduced short selling pressure.
• Insiders bought stock in March — Director John Bolduc purchased 8,392 shares and CEO Stuart D. Aronson bought 8,000 shares; insiders bought 47,448 shares over the last 90 days and now own 2.50% of the company.
• Dividend yield is high at 13.1% (quarterly $0.25), but the dividend payout ratio is elevated at 161.29%, which could raise sustainability concerns.

WhiteHorse Finance, Inc. (NASDAQ:WHF - Get Free Report) was the target of a significant drop in short interest during the month of March. As of March 31st, there was short interest totaling 406,377 shares, a drop of 16.7% from the March 15th total of 487,728 shares. Based on an average daily trading volume, of 102,368 shares, the days-to-cover ratio is currently 4.0 days. Currently, 1.9% of the shares of the company are sold short.

Insiders Place Their Bets

In related news, Director John Bolduc purchased 8,392 shares of the business's stock in a transaction dated Thursday, March 5th. The stock was purchased at an average cost of $7.12 per share, with a total value of $59,751.04. Following the completion of the acquisition, the director directly owned 267,894 shares of the company's stock, valued at approximately $1,907,405.28. The trade was a 3.23% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Stuart D. Aronson purchased 8,000 shares of the business's stock in a transaction dated Monday, March 23rd. The stock was bought at an average cost of $6.95 per share, with a total value of $55,600.00. Following the completion of the acquisition, the chief executive officer directly owned 80,000 shares of the company's stock, valued at approximately $556,000. This trade represents a 11.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought 47,448 shares of company stock valued at $337,673 over the last ninety days. Corporate insiders own 2.50% of the company's stock.

Institutional Investors Weigh In On WhiteHorse Finance

Large investors have recently added to or reduced their stakes in the business. Advisory Services Network LLC bought a new stake in WhiteHorse Finance during the third quarter valued at $26,000. Kestra Advisory Services LLC bought a new stake in WhiteHorse Finance during the fourth quarter valued at $44,000. HUB Investment Partners LLC bought a new stake in WhiteHorse Finance during the third quarter valued at $75,000. Norden Group LLC bought a new stake in WhiteHorse Finance during the fourth quarter valued at $76,000. Finally, O Shaughnessy Asset Management LLC bought a new stake in WhiteHorse Finance during the fourth quarter valued at $88,000. Institutional investors own 13.20% of the company's stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of WhiteHorse Finance in a report on Wednesday, January 21st. Three analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $7.75.

WhiteHorse Finance Price Performance

WhiteHorse Finance stock opened at $7.65 on Thursday. WhiteHorse Finance has a one year low of $6.07 and a one year high of $9.95. The business has a fifty day moving average price of $7.01 and a 200-day moving average price of $7.04. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.25 and a quick ratio of 1.25. The firm has a market capitalization of $170.06 million, a P/E ratio of 12.34 and a beta of 0.41.

WhiteHorse Finance (NASDAQ:WHF - Get Free Report) last posted its quarterly earnings results on Monday, March 2nd. The investment management company reported $0.29 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. The firm had revenue of $17.34 million during the quarter, compared to analyst estimates of $16.91 million. WhiteHorse Finance had a return on equity of 9.66% and a net margin of 19.73%. As a group, equities research analysts forecast that WhiteHorse Finance will post 1.66 EPS for the current year.

WhiteHorse Finance Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 6th. Investors of record on Thursday, March 12th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $1.00 annualized dividend and a yield of 13.1%. WhiteHorse Finance's dividend payout ratio (DPR) is currently 161.29%.

About WhiteHorse Finance

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.

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