WhiteHorse Finance (NASDAQ:WHF) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

WhiteHorse Finance (NASDAQ:WHF) released its earnings results on Monday. The investment management company reported $0.22 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.03), FiscalAI reports. The business had revenue of $14.37 million for the quarter, compared to analysts’ expectations of $15.66 million. WhiteHorse Finance had a return on equity of 9.47% and a net margin of 13.46%.

WhiteHorse Finance Price Performance

Shares of WHF traded up $0.34 during mid-day trading on Tuesday, hitting $7.05. 42,189 shares of the company were exchanged, compared to its average volume of 97,176. The stock has a market cap of $151.43 million, a price-to-earnings ratio of 17.20 and a beta of 0.38. WhiteHorse Finance has a 1-year low of $6.07 and a 1-year high of $8.97. The company has a 50 day moving average of $6.55 and a 200-day moving average of $6.89. The company has a debt-to-equity ratio of 1.30, a quick ratio of 2.23 and a current ratio of 2.23.

WhiteHorse Finance Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, October 5th. Stockholders of record on Monday, September 21st will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Monday, September 21st. This represents a $1.00 dividend on an annualized basis and a dividend yield of 14.2%. WhiteHorse Finance’s payout ratio is currently 243.90%.

Analyst Ratings Changes

Several research firms have recently weighed in on WHF. JPMorgan Chase & Co. dropped their target price on shares of WhiteHorse Finance from $6.50 to $6.00 and set an “underweight” rating on the stock in a research report on Thursday, July 2nd. Weiss Ratings lowered WhiteHorse Finance from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $7.50.

Insider Buying and Selling

In other news, Director John Bolduc acquired 15,380 shares of the firm’s stock in a transaction on Thursday, June 18th. The shares were bought at an average price of $6.49 per share, for a total transaction of $99,816.20. Following the acquisition, the director owned 317,297 shares of the company’s stock, valued at approximately $2,059,257.53. This trade represents a 5.09% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Stuart D. Aronson bought 20,000 shares of the company’s stock in a transaction dated Thursday, May 21st. The shares were acquired at an average cost of $6.67 per share, with a total value of $133,400.00. Following the acquisition, the chief executive officer directly owned 100,000 shares of the company’s stock, valued at approximately $667,000. This represents a 25.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired 94,940 shares of company stock valued at $627,568 in the last three months. Insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Quadrature Capital Ltd purchased a new stake in WhiteHorse Finance in the 4th quarter valued at $339,000. Osaic Holdings Inc. grew its holdings in shares of WhiteHorse Finance by 43.7% in the fourth quarter. Osaic Holdings Inc. now owns 18,634 shares of the investment management company’s stock valued at $130,000 after purchasing an additional 5,665 shares during the period. HRT Financial LP increased its position in WhiteHorse Finance by 16.5% during the fourth quarter. HRT Financial LP now owns 19,922 shares of the investment management company’s stock worth $138,000 after purchasing an additional 2,815 shares during the last quarter. LPL Financial LLC raised its stake in WhiteHorse Finance by 49.5% during the fourth quarter. LPL Financial LLC now owns 69,644 shares of the investment management company’s stock worth $484,000 after purchasing an additional 23,047 shares during the period. Finally, CANADA LIFE ASSURANCE Co grew its stake in shares of WhiteHorse Finance by 35.9% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 24,457 shares of the investment management company’s stock valued at $169,000 after buying an additional 6,460 shares during the period. 13.20% of the stock is currently owned by institutional investors and hedge funds.

More WhiteHorse Finance News

Here are the key news stories impacting WhiteHorse Finance this week:

• Positive Sentiment: WhiteHorse Finance declared a quarterly distribution of $0.25 per share, payable October 5 to shareholders of record on September 21. The payment equates to approximately $1.00 annually and a yield near 14.9%, which may appeal to income-focused investors. WhiteHorse Finance Second-Quarter Earnings and Distribution Announcement
• Positive Sentiment: The company’s investment portfolio fair value increased to $569.2 million from $543.0 million in the prior quarter, while it invested $23.1 million in three new portfolio companies. WhiteHorse also reported a $10.4 million net increase in net assets from operations, reversing the previous quarter’s decline. WhiteHorse Finance Reports Second-Quarter Investment Income
• Positive Sentiment: WhiteHorse Advisers agreed to reduce the incentive fee on net investment income to 17.50% for the quarter ending September 30, a move that could provide some support to future shareholder earnings.
• Neutral Sentiment: Management reported second-quarter net investment income of $4.7 million, or $0.217 per share, alongside total investment income of $14.4 million. The distribution remains attractive, but the quarter’s per-share income was below the declared payout, making dividend coverage an important issue for investors.
• Negative Sentiment: Second-quarter EPS of $0.22 fell short of the $0.25 consensus estimate and declined from $0.28 a year earlier. Revenue of $14.37 million also missed the $15.66 million analyst estimate, while total investment income decreased from $15.9 million in the prior quarter. WhiteHorse Finance Misses Second-Quarter Earnings and Revenue Estimates

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.