WhiteHorse Finance Inc. (NASDAQ:WHF) stock has reached a 52-week low, trading at $10.48. This price point marks a significant downturn for the company, reflecting a challenging year with a 1-year change showing a decline of -12.77%. Investors are closely monitoring the stock as it navigates through market fluctuations and industry-specific headwinds. The 52-week low serves as a critical indicator for potential buyers looking for entry points, while existing shareholders consider the implications of the stock's performance on their portfolios.
In other recent news, WhiteHorse Finance has seen a change in stock ratings following its Q3 2024 earnings report. Oppenheimer downgraded the company's stock from Outperform to Perform, lowering the target to $12. The decision was influenced by WhiteHorse Finance's reported loss of $0.30 per share and a negative 9.0% return on equity for the third quarter. Net losses of $16.0 million were attributed to markdowns in investments such as American Craft, Honors Holdings, and Telestream.
Analysts at Oppenheimer project WhiteHorse Finance will earn $0.71 and $1.46 per share in 2024 and 2025 respectively, with corresponding ROEs of 5.3% and 11.4%. However, concerns were raised regarding the company's ability to cover its $1.54 per share dividend in 2025, despite having $26.8 million in spillover income.
In another development, Raymond (NS:RYMD) James also downgraded WhiteHorse Finance's rating from Outperform to Market Perform following its Q3 2024 earnings. This was due to the company's earnings and net asset value per share falling short of projections, raising concerns about its credit outlook. Despite these revisions, Raymond James anticipates the dividend to be fully covered due to spillover income, maintaining the dividend through at least the summer of 2025.
InvestingPro Insights
WhiteHorse Finance Inc. (WHF) has reached a significant milestone with its stock hitting a 52-week low, and InvestingPro data provides additional context to this development. Despite the challenging market conditions, WHF maintains a substantial dividend yield of 16.95%, underscoring its commitment to shareholder returns. This aligns with an InvestingPro Tip highlighting that WHF has maintained dividend payments for 13 consecutive years, a factor that may appeal to income-focused investors despite the stock's recent performance.
However, investors should note that WHF's revenue growth has been negative, with a -5.91% decline over the last twelve months as of Q3 2024. This contraction in revenue may be contributing to the stock's current valuation challenges. An InvestingPro Tip suggests that the stock's valuation implies a poor free cash flow yield, which could be a concern for value investors.
For those considering WHF's current price point as a potential entry opportunity, it's worth noting that the stock is trading at 80.11% of its 52-week high. Additionally, analysts have set a fair value target of $11.50, indicating some potential upside from the current price levels.
InvestingPro offers 7 additional tips for WHF, providing a more comprehensive analysis for investors looking to make informed decisions in these volatile market conditions.
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