WhiteHorse Finance (NASDAQ:WHF) Shares Cross Above 200 Day Moving Average - Time to Sell?

Key Points

• WhiteHorse Finance shares rose above their 200-day moving average, reaching $7.09 and last trading at $7.05, compared with the $6.90 average.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $7.00; recent quarterly EPS of $0.22 missed the $0.25 estimate.
• The company declared a quarterly dividend of $0.25, equivalent to a 14.2% annualized yield, while insiders bought 94,940 shares during the latest quarter.

WhiteHorse Finance, Inc. (NASDAQ:WHF - Get Free Report) shares passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $6.90 and traded as high as $7.09. WhiteHorse Finance shares last traded at $7.05, with a volume of 42,457 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. JPMorgan Chase & Co. dropped their price target on WhiteHorse Finance from $6.50 to $6.00 and set an "underweight" rating on the stock in a research note on Thursday, July 2nd. Weiss Ratings cut WhiteHorse Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, June 2nd. Finally, B. Riley Financial boosted their price objective on WhiteHorse Finance from $7.50 to $8.00 and gave the company a "neutral" rating in a report on Friday. Two equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $7.00.

WhiteHorse Finance Price Performance

The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.29. The business has a 50-day moving average of $6.59 and a 200 day moving average of $6.90. The firm has a market capitalization of $151.43 million, a PE ratio of 8.92 and a beta of 0.38.

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

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 given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 14.2%. The ex-dividend date of this dividend is Monday, September 21st. WhiteHorse Finance's dividend payout ratio is presently 126.58%.

Insider Activity

In other news, CEO Stuart D. Aronson bought 15,000 shares of the company's stock in a transaction on Monday, June 15th. The shares were purchased at an average price of $6.41 per share, with a total value of $96,150.00. Following the transaction, the chief executive officer directly owned 127,000 shares in the company, valued at $814,070. This represents a 13.39% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John Bolduc bought 15,380 shares of the company's stock in a transaction on Thursday, June 18th. The shares were purchased at an average cost of $6.49 per share, for a total transaction of $99,816.20. Following the transaction, the director owned 317,297 shares in the company, valued at approximately $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. In the last quarter, insiders acquired 94,940 shares of company stock valued at $627,568. Company insiders own 3.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Advisory Services Network LLC purchased a new stake in shares of WhiteHorse Finance during the 3rd quarter valued at $26,000. Kestra Advisory Services LLC purchased a new position in shares of WhiteHorse Finance in the 4th quarter worth about $44,000. Oxford Asset Management LLP purchased a new position in shares of WhiteHorse Finance in the 2nd quarter worth about $105,000. O Shaughnessy Asset Management LLC bought a new position in WhiteHorse Finance during the fourth quarter valued at about $88,000. Finally, Trexquant Investment LP bought a new position in WhiteHorse Finance during the fourth quarter valued at about $108,000. Institutional investors own 13.20% of the company's stock.

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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