WhiteHorse (NASDAQ:WHF) Finance, Inc. (NASDAQ:WHF) Director John Bolduc has recently increased his stake in the company through a series of stock purchases totaling $199,731. The transactions, which took place over two days, involved shares of the company's common stock with par values of $0.001 each.
On the first day, Bolduc bought a total of 12,673 shares at an average price of $11.48. The purchases were made in multiple transactions with prices ranging from $11.37 to $11.59. The following day, he continued to expand his holdings by acquiring an additional 4,717 shares, priced at an average of $11.50 per share, again through multiple transactions within the same price range.
These strategic purchases have brought Bolduc's total owned shares in WhiteHorse Finance to a significant amount, reflecting his strong commitment to the company. Notably, the transactions were conducted indirectly through entities in which Bolduc has a pecuniary interest. Specifically, the shares were acquired by Bolduc Family LP and Bolduc Investments X, LLC, with Bolduc being the sole shareholder of the general partner of the former and a member of the latter. Despite this indirect ownership, Bolduc has disclaimed beneficial ownership of these shares, acknowledging his interest strictly to the extent of his financial investment.
The detailed breakdown of the transactions, including the number of shares acquired at each price point, is available upon request to WhiteHorse Finance, any of its security holders, or the Securities and Exchange Commission staff, as stated by Mr. Bolduc in the footnotes of the SEC Form 4 filing.
John Bolduc's recent investment activity in WhiteHorse Finance underscores a positive outlook for the company, as insiders often buy stock when they believe the company is poised for success. Investors typically monitor such insider transactions as indicators of confidence and potential growth within the company.
In other recent news, WhiteHorse Finance reported its Q2 2024 earnings, with net investment income (NII) that exceeded the company's base dividend, despite a minor decrease in net asset value (NAV) per share. The company's gross capital deployments, totaling $55.8 million, indicated strong investment activity, with a focus on credit quality and leverage in anticipation of a potential economic slowdown. The GAAP net investment income and core NII for Q2 stood at $9.3 million, or $0.40 per share, surpassing the quarterly base dividend of $0.385 per share.
The NAV per share saw a slight drop of 0.4% from the previous quarter, ending at $13.45 at the close of Q2. The fair value of the investment portfolio was $660 million, with a weighted average effective yield of 13.8%. Non-accrual investments, including a $2.2 million markdown on Honors Holdings, made up 4.2% of the total debt portfolio at fair value.
The company anticipates refinancing activities to continue throughout the year, influenced by borrower-friendly market conditions and potential interest rate reductions by the Fed in Q4 2024. WhiteHorse Finance has significant capacity for new assets, with $60 million available for the BDC and $30 million for the JV. The company closed three new originations in Q3, totaling approximately $18 million, with more in the pipeline. These are among the recent developments for WhiteHorse Finance.
InvestingPro Insights
Following the news of Director John Bolduc's increased investment in WhiteHorse Finance, Inc. (NASDAQ:WHF), several key metrics from InvestingPro offer additional context to his decision. With a market capitalization of approximately $260.09 million and a P/E ratio of 11.35, WhiteHorse Finance presents certain financial characteristics that may have influenced Bolduc's transactions. Notably, the company has a significant dividend yield of 13.79%, which is particularly appealing for investors seeking income through dividends.
Despite a modest revenue growth of 1.22% over the last twelve months as of Q2 2024, WhiteHorse Finance's commitment to shareholder returns is evident, having maintained dividend payments for 13 consecutive years. This steadfast approach to dividends aligns with one of the InvestingPro Tips, which highlights the company's substantial dividend payments to shareholders. Additionally, WhiteHorse Finance has been profitable over the same period, which could further justify an insider's confidence in the company's financial health and future prospects.
Investors might also take note that the company is trading near its 52-week low, potentially offering a more attractive entry point for those who believe in the company's fundamentals and long-term strategy. For those interested in a deeper dive into WhiteHorse Finance's financials and future outlook, InvestingPro provides a comprehensive set of tools and additional InvestingPro Tips, with a total of 5 tips available to guide investment decisions.
For more detailed analysis and insights, investors can explore the full suite of InvestingPro Tips at: https://www.investing.com/pro/WHF
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