WhiteHorse Finance (NASDAQ:WHF) Shares Pass Below 200 Day Moving Average – Time to Sell?

Shares of WhiteHorse Finance, Inc. (NASDAQ:WHF) passed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $8.06 and traded as low as $7.18. WhiteHorse Finance shares last traded at $7.25, with a volume of 239,190 shares trading hands.

Analyst Ratings Changes

WHF has been the topic of a number of analyst reports. JPMorgan Chase & Co. dropped their price objective on shares of WhiteHorse Finance from $8.00 to $6.50 and set an “underweight” rating on the stock in a report on Wednesday, October 1st. Weiss Ratings restated a “sell (d+)” rating on shares of WhiteHorse Finance in a research note on Wednesday, October 8th. Finally, Zacks Research upgraded WhiteHorse Finance from a “strong sell” rating to a “hold” rating in a research report on Friday, December 12th. Three equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, WhiteHorse Finance presently has a consensus rating of “Reduce” and an average target price of $7.75.

WhiteHorse Finance Stock Performance

The stock has a market cap of $167.10 million, a price-to-earnings ratio of 16.72 and a beta of 0.56. The company’s 50 day simple moving average is $7.19 and its 200 day simple moving average is $8.05. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.80 and a current ratio of 1.80.

WhiteHorse Finance (NASDAQ:WHF) 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 the consensus estimate of $0.29 by ($0.03). WhiteHorse Finance had a net margin of 12.91% and a return on equity of 9.93%. The company had revenue of $17.69 million during the quarter, compared to the consensus estimate of $18.43 million. On average, equities research analysts anticipate that WhiteHorse Finance, Inc. will post 1.66 earnings per share for the current year.

WhiteHorse Finance Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, January 5th. Stockholders of record on Monday, December 22nd will be issued a $0.25 dividend. The ex-dividend date is Monday, December 22nd. This represents a $1.00 annualized dividend and a dividend yield of 13.9%. WhiteHorse Finance’s dividend payout ratio is 358.14%.

Insider Activity

In other WhiteHorse Finance news, CEO Stuart D. Aronson acquired 14,000 shares of WhiteHorse Finance stock in a transaction dated Wednesday, November 12th. The stock was bought at an average price of $6.92 per share, for a total transaction of $96,880.00. Following the transaction, the chief executive officer owned 50,000 shares in the company, valued at approximately $346,000. This trade represents a 38.89% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director John Bolduc acquired 14,200 shares of the stock in a transaction dated Friday, November 14th. The stock was acquired at an average cost of $6.88 per share, for a total transaction of $97,696.00. Following the purchase, the director directly owned 251,985 shares in the company, valued at approximately $1,733,656.80. The trade was a 5.97% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased 43,300 shares of company stock valued at $298,816 in the last ninety days. Company insiders own 2.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of America Corp DE increased its stake in WhiteHorse Finance by 92.0% in the 2nd quarter. Bank of America Corp DE now owns 185,004 shares of the investment management company’s stock valued at $1,613,000 after buying an additional 88,659 shares during the period. Two Sigma Investments LP grew its holdings in shares of WhiteHorse Finance by 27.5% during the 3rd quarter. Two Sigma Investments LP now owns 231,140 shares of the investment management company’s stock valued at $1,599,000 after acquiring an additional 49,893 shares in the last quarter. Citadel Advisors LLC increased its stake in shares of WhiteHorse Finance by 190.8% in the third quarter. Citadel Advisors LLC now owns 21,418 shares of the investment management company’s stock worth $148,000 after acquiring an additional 45,018 shares during the last quarter. Marshall Wace LLP purchased a new stake in shares of WhiteHorse Finance during the second quarter worth $368,000. Finally, Ethos Financial Group LLC raised its holdings in shares of WhiteHorse Finance by 8.2% during the third quarter. Ethos Financial Group LLC now owns 222,454 shares of the investment management company’s stock worth $1,539,000 after acquiring an additional 16,781 shares in the last quarter. 13.20% of the stock is currently owned by institutional investors and hedge funds.

WhiteHorse Finance Company Profile

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.