WhiteHorse Finance Inc Shares Remain Volatile After Fourth-Quarter Results Announcement

WhiteHorse Finance Inc (WHF) Shares Volatile After Fourth-Quarter Results Announcement

WhiteHorse Finance Inc (WHF) saw its shares experience volatility following the announcement of its fourth-quarter results. The company’s dividend policy came under scrutiny as its net interest income (NII) fell short of expectations, according to JPMorgan.

Analyst Melissa Wedel reaffirmed an Underweight rating on the stock while reducing the price target from $9.50 to $9.00. The company reported fourth-quarter NII at 34 cents per share, missing the consensus of 39 cents per share. Additionally, the net asset value (NAV) declined by 3.6% sequentially to $12.31 per share.

Management declared a regular quarterly distribution of 38.5 cents per share for the first quarter, but indicated they were still evaluating the portfolio’s earnings power in the near to medium term. This uncertainty leaves some doubts about the dividend being reduced, especially with $28.4 million of spillover income remaining after the special dividend was paid in the fourth quarter.

Investors are expected to remain focused on dividend coverage through NII and credit trends until dividend coverage through NII is achieved and NAV stabilizes. At the time of publication on Monday, shares of WhiteHorse Finance had declined by 0.6% to $9.98.

Overall, the company’s fourth-quarter results and dividend policy have sparked interest and concern among investors, leading to volatility in its stock price.
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