Core Viewpoint - WhiteHorse Finance, Inc. (NASDAQ:WHF) is facing challenges with its recent financial performance, leading to a reduced price target and concerns over dividend coverage [2][3]. Financial Performance - B. Riley has cut the price target for WHF from $9 to $7.50 while maintaining a Neutral rating, citing that the third-quarter results did not fully cover the dividend and that NAV per share has declined [2]. - As of September 30, 2025, WHF's investment portfolio had a fair value of $568.4 million, down from $629.3 million on June 30, 2025, with a weighted average effective yield of 11.6% on income-producing debt investments [4]. Dividend and Shareholder Returns - The board has authorized a stock buyback program of up to $15.0 million and reset the regular quarterly distribution to $0.25 per share, with potential for supplemental payouts if market conditions improve [3]. Investment Strategy - WHF is identified as a close-end investment company that provides loans to private, lower middle-market businesses in the US, indicating a focus on niche lending [4].

Group 1 - Fidelis Insurance Holdings Limited (FIHL) has been added to the Zacks Rank 5 (Strong Sell) List due to a 42.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Flowco Holdings Inc. (FLOC) is also on the Zacks Rank 5 (Strong Sell) List, with a 3.4% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - WhiteHorse Finance, Inc. (WHF) has been included in the Zacks Rank 5 (Strong Sell) List, experiencing a 4.1% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Company Overview - Stellus Capital (SCM) shares increased by 7.1% to close at $12.52, following a notable trading volume compared to typical sessions, despite a 15.4% loss over the past four weeks [1] - The stock surge was influenced by a broader market jump, attributed to President Trump's announcement of a 90-day tariff pause for non-retaliating nations, which positively impacted investor sentiment [2] Earnings Expectations - Stellus Capital is expected to report quarterly earnings of $0.37 per share, reflecting a year-over-year decline of 15.9%, with revenues projected at $26.26 million, a 1% increase from the previous year [2] - The consensus EPS estimate for Stellus Capital has been revised 4.6% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [4] Industry Context - Stellus Capital operates within the Zacks Financial - SBIC & Commercial Industry, where another company, WhiteHorse Finance (WHF), saw a 5.4% increase in its stock price, closing at $9.14, despite a -11.7% return over the past month [4] - WhiteHorse's consensus EPS estimate has decreased by 11.1% to $0.33, representing a year-over-year change of -29.8%, and it currently holds a Zacks Rank of 4 (Sell) [5]