Saratoga Investment Corp (NYSE:SAR) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Saratoga Investment has a consensus “Hold” rating from six analysts, with an average 12-month price target of $21.50. Recent analysts lowered targets to $21–$22, while Zacks upgraded the stock from “strong sell” to “hold.”
• The company’s latest quarterly results missed expectations, reporting EPS of $0.47 versus the $0.54 consensus and revenue of $30.78 million compared with estimates of $31.38 million.
• SAR shares opened at $17.86, near their 12-month low, while the company declared a $0.25 monthly dividend indicated to yield 16.8%; institutional investors own 19.09% of the stock.

Saratoga Investment Corp (NYSE:SAR - Get Free Report) has earned a consensus rating of "Hold" from the six ratings firms that are currently covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold rating. The average 1-year target price among analysts that have issued a report on the stock in the last year is $21.50.

Several research analysts have commented on the company. Weiss Ratings downgraded Saratoga Investment from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, July 8th. B. Riley Financial reduced their target price on Saratoga Investment from $23.00 to $22.00 and set a "neutral" rating on the stock in a report on Thursday, July 9th. Zacks Research upgraded shares of Saratoga Investment from a "strong sell" rating to a "hold" rating in a research report on Monday, September 7th. Finally, Oppenheimer cut their price target on shares of Saratoga Investment from $22.00 to $21.00 and set a "market perform" rating on the stock in a research report on Thursday, July 9th.

Institutional Investors Weigh In On Saratoga Investment

Several hedge funds and other institutional investors have recently modified their holdings of SAR. Triumph Capital Management raised its stake in shares of Saratoga Investment by 66.2% in the second quarter. Triumph Capital Management now owns 2,950 shares of the financial services provider's stock worth $66,000 after purchasing an additional 1,175 shares during the last quarter. Western Wealth Management LLC bought a new position in shares of Saratoga Investment during the 1st quarter worth approximately $70,000. Harbour Investments Inc. increased its position in shares of Saratoga Investment by 100.9% during the fourth quarter. Harbour Investments Inc. now owns 5,973 shares of the financial services provider's stock valued at $138,000 after acquiring an additional 3,000 shares during the last quarter. Janney Montgomery Scott LLC purchased a new position in Saratoga Investment in the first quarter worth $224,000. Finally, Greenwood Gearhart LLC bought a new stake in shares of Saratoga Investment during the 1st quarter worth $389,000. Institutional investors own 19.09% of the company's stock.

Saratoga Investment Stock Performance

Shares of SAR stock opened at $17.86 on Friday. The business's 50-day moving average price is $18.69 and its 200-day moving average price is $21.02. Saratoga Investment has a 12 month low of $17.08 and a 12 month high of $25.15. The company has a current ratio of 0.09, a quick ratio of 0.09 and a debt-to-equity ratio of 0.18. The firm has a market capitalization of $287.19 million, a price-to-earnings ratio of 17.86 and a beta of 0.54.

Saratoga Investment (NYSE:SAR - Get Free Report) last announced its quarterly earnings results on Tuesday, July 7th. The financial services provider reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.07). Saratoga Investment had a net margin of 12.70% and a return on equity of 8.76%. The business had revenue of $30.78 million during the quarter, compared to analyst estimates of $31.38 million. Equities research analysts forecast that Saratoga Investment will post 1.94 EPS for the current year.

Saratoga Investment Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Tuesday, December 22nd. Shareholders of record on Thursday, December 3rd will be issued a $0.25 dividend. This represents a c) dividend on an annualized basis and a yield of 16.8%. The ex-dividend date is Thursday, December 3rd. Saratoga Investment's dividend payout ratio (DPR) is presently 300.00%.

About Saratoga Investment

Saratoga Investment Corporation NYSE: SAR is a business development company that provides financing and equity capital to lower-middle-market companies in the United States. The company primarily seeks to support established businesses that require capital for growth, acquisitions, recapitalizations, ownership transitions and other strategic initiatives.

Its investment activities generally include senior secured loans, unitranche and mezzanine debt, subordinated debt, and minority or other equity investments.

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