In a challenging market environment, WhiteHorse Finance , Inc. (NASDAQ:WHF) stock has touched a 52-week low, reaching a price level of $10.06. Despite market pressures, the company maintains a notable 17.75% dividend yield and has sustained dividend payments for 13 consecutive years. This latest dip reflects a broader trend for the investment management company, which has seen its stock price decline over the past year. With a market capitalization of $242.66 million and a beta of 1.3, investors have witnessed a significant reduction in value, with WhiteHorse Finance's 1-year total return showing a decrease of 5.43%. This downturn in performance has raised concerns among shareholders and market analysts alike, as they watch closely for signs of a turnaround or further decline in the company's stock value. InvestingPro subscribers can access detailed financial health metrics and additional analysis to better understand the company's position.
In other recent news, WhiteHorse Finance has amended its existing loan agreement, extending a key investment period by one month. This amendment pertains to the company's subsidiary, WhiteHorse Finance Credit I, LLC, and involves major financial institutions such as JPMorgan Chase (NYSE:JPM) Bank and Citibank. The adjustment allows for an additional month during which WhiteHorse Credit can reinvest in its portfolio under the terms of the amended loan agreement.
Following the company's third-quarter results for 2024, Oppenheimer downgraded WhiteHorse Finance's stock rating from Outperform to Perform and lowered the price target to $12, citing a loss of $0.30 per share and a negative 9.0% return on equity (ROE). Raymond (NS:RYMD) James also adjusted its stance on WhiteHorse Finance, downgrading its rating from Outperform to Market Perform due to earnings and net asset value per share falling short of projections.
Despite concerns, WhiteHorse Finance's Q2 2024 earnings disclosed a net investment income exceeding the company's base dividend, despite a slight dip in net asset value per share. The company reported gross capital deployments totaling $55.8 million in Q2, with a fair value of the investment portfolio standing at $660 million. Raymond James anticipates the dividend to be fully covered due to spillover income, which is substantial enough to maintain the dividend through at least the summer of 2025.
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