Key Points
- CEO insider buy: Stuart Aronson purchased 14,000 shares at $6.92 on Nov. 12 for $96,880, increasing his stake 38.89% to 50,000 shares valued at about $346,000.
- Dividend/yield concerns: The company declared a $0.25 quarterly dividend ($1.00 annualized) yielding 14.2%, but with a 232.56% payout ratio, indicating the dividend may be unsustainably high.
- Weak results and negative analyst stance: WhiteHorse missed quarterly EPS ($0.26 vs. $0.29) and revenue estimates; the stock traded at $7.04 (up 4.3%) while analysts collectively rate it a Strong Sell with lowered price targets.
WhiteHorse Finance, Inc. (NASDAQ:WHF - Get Free Report) CEO Stuart Aronson acquired 14,000 shares of the business's stock in a transaction that occurred on Wednesday, November 12th. The stock was bought at an average cost of $6.92 per share, for a total transaction of $96,880.00. Following the completion of the transaction, the chief executive officer directly owned 50,000 shares in the company, valued at $346,000. This represents a 38.89% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.
WhiteHorse Finance Stock Up 4.3%
WHF stock traded up $0.29 during trading hours on Friday, reaching $7.04. 142,990 shares of the stock were exchanged, compared to its average volume of 102,248. The company has a market cap of $163.63 million, a price-to-earnings ratio of 46.94 and a beta of 0.79. The firm's 50-day moving average is $7.36 and its 200-day moving average is $8.38. WhiteHorse Finance, Inc. has a 12 month low of $6.39 and a 12 month high of $11.31. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.34 and a quick ratio of 1.34.
WhiteHorse Finance (NASDAQ:WHF - Get Free Report) last posted its quarterly earnings data on Monday, November 10th. The investment management company reported $0.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.29 by ($0.03). The firm had revenue of $17.69 million for the quarter, compared to the consensus estimate of $18.43 million. WhiteHorse Finance had a return on equity of 10.72% and a net margin of 4.36%. On average, equities research analysts expect that WhiteHorse Finance, Inc. will post 1.66 earnings per share for the current year.
WhiteHorse Finance Cuts Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 5th. Stockholders of record on Monday, December 22nd will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 14.2%. The ex-dividend date of this dividend is Monday, December 22nd. WhiteHorse Finance's payout ratio is currently 232.56%.
Institutional Trading of WhiteHorse Finance
Several institutional investors and hedge funds have recently bought and sold shares of the business. Ethos Financial Group LLC acquired a new position in shares of WhiteHorse Finance during the 1st quarter worth approximately $1,931,000. Bank of America Corp DE increased its holdings in shares of WhiteHorse Finance by 92.0% in the second quarter. Bank of America Corp DE now owns 185,004 shares of the investment management company's stock valued at $1,613,000 after purchasing an additional 88,659 shares during the last quarter. Two Sigma Investments LP increased its holdings in shares of WhiteHorse Finance by 27.5% in the third quarter. Two Sigma Investments LP now owns 231,140 shares of the investment management company's stock valued at $1,599,000 after purchasing an additional 49,893 shares during the last quarter. Marshall Wace LLP bought a new position in shares of WhiteHorse Finance in the second quarter valued at about $368,000. Finally, Oxford Asset Management LLP acquired a new stake in shares of WhiteHorse Finance during the 2nd quarter worth about $105,000. Institutional investors own 13.20% of the company's stock.
Analysts Set New Price Targets
Several brokerages have issued reports on WHF. JPMorgan Chase & Co. lowered their price target on shares of WhiteHorse Finance from $8.00 to $6.50 and set an "underweight" rating on the stock in a research note on Wednesday, October 1st. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of WhiteHorse Finance in a research report on Wednesday, October 8th. B. Riley reduced their price target on WhiteHorse Finance from $9.50 to $9.00 and set a "neutral" rating for the company in a research report on Wednesday, August 13th. LADENBURG THALM/SH SH raised WhiteHorse Finance to a "hold" rating in a research report on Friday, August 8th. Finally, Zacks Research downgraded WhiteHorse Finance from a "hold" rating to a "strong sell" rating in a report on Thursday. Two analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, WhiteHorse Finance currently has a consensus rating of "Strong Sell" and a consensus target price of $7.75.
Check Out Our Latest Research Report on WhiteHorse Finance
About WhiteHorse Finance
(
Get Free Report)
WhiteHorse Finance, Inc is business development company, non-diversified, closed end management company specializing in originating senior secured loans, lower middle market, growth capital industries. It invests in broadline retail, office services and supplies, building products, health care services, health care supplies, research and consulting services, application software, home furnishings, specialized consumer services, data processing and outsourced services, leisure facilities, cable, and satellite.
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