Saratoga Investment Corp (NYSE:SAR) Stock Has Average Target Price of $19.67

Key Points

• Analysts maintain a “Hold” consensus on Saratoga Investment, with all five covering brokerages issuing hold-equivalent ratings and an average 12-month price target of $19.67.
• Saratoga Investment reported quarterly earnings of $0.46 per share, below the $0.49 consensus estimate, while revenue of $31.17 million also slightly missed expectations.
• The company declared a monthly dividend of $0.25 per share, equivalent to $3.00 annually and a reported 20.1% yield; institutional investors own 19.09% of the stock.

Shares of Saratoga Investment Corp (NYSE:SAR - Get Free Report) have earned a consensus recommendation of "Hold" from the five brokerages that are presently covering the company, Marketbeat reports. Five equities research analysts have rated the stock with a hold recommendation. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $19.67.

A number of equities research analysts have commented on SAR shares. Wall Street Zen upgraded shares of Saratoga Investment from a "sell" rating to a "hold" rating in a report on Saturday. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Saratoga Investment in a research note on Friday, October 2nd. Oppenheimer dropped their price objective on shares of Saratoga Investment from $22.00 to $21.00 and set a "market perform" rating on the stock in a report on Thursday, July 9th. B. Riley Financial dropped their price objective on shares of Saratoga Investment from $22.00 to $20.00 and set a "neutral" rating on the stock in a report on Thursday, October 8th. Finally, Zacks Research raised shares of Saratoga Investment from a "strong sell" rating to a "hold" rating in a research report on Monday, September 7th.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SAR. Bank of America Corp DE grew its stake in Saratoga Investment by 2,243.4% in the first quarter. Bank of America Corp DE now owns 25,027 shares of the financial services provider's stock valued at $547,000 after acquiring an additional 23,959 shares during the period. International Assets Investment Management LLC increased its holdings in shares of Saratoga Investment by 33.3% during the first quarter. International Assets Investment Management LLC now owns 82,407 shares of the financial services provider's stock valued at $1,762,000 after acquiring an additional 20,598 shares in the last quarter. Greenwood Gearhart LLC bought a new stake in shares of Saratoga Investment during the first quarter valued at approximately $389,000. Janney Montgomery Scott LLC acquired a new position in shares of Saratoga Investment during the first quarter worth approximately $224,000. Finally, Focus Financial Network Inc. raised its position in shares of Saratoga Investment by 19.1% during the second quarter. Focus Financial Network Inc. now owns 25,218 shares of the financial services provider's stock worth $563,000 after purchasing an additional 4,042 shares during the period. 19.09% of the stock is owned by institutional investors and hedge funds.

Saratoga Investment Price Performance

Saratoga Investment stock opened at $14.93 on Tuesday. The stock has a market capitalization of $232.23 million, a price-to-earnings ratio of -59.70 and a beta of 0.57. Saratoga Investment has a 52-week low of $13.78 and a 52-week high of $24.07. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.13 and a current ratio of 0.13. The stock's 50 day moving average price is $17.78 and its two-hundred day moving average price is $20.27.

Saratoga Investment (NYSE:SAR - Get Free Report) last released its quarterly earnings data on Tuesday, October 6th. The financial services provider reported $0.46 earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.03). Saratoga Investment had a negative net margin of 3.35% and a positive return on equity of 8.66%. The company had revenue of $31.17 million during the quarter, compared to the consensus estimate of $31.46 million. On average, equities analysts predict that Saratoga Investment will post 1.92 earnings per share for the current year.

Saratoga Investment Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Tuesday, December 22nd. Investors of record on Thursday, December 3rd will be given a $0.25 dividend. This represents a $3.00 dividend on an annualized basis and a yield of 20.1%. The ex-dividend date of this dividend is Thursday, December 3rd. Saratoga Investment's payout ratio is presently -1,200.00%.

About Saratoga Investment

Saratoga Investment Corporation NYSE: SAR is a business development company that provides financing to lower middle-market companies in the United States. The company seeks to support businesses that may have limited access to traditional bank financing, working with private equity sponsors, management teams and other financial partners.

Through its investment portfolio, Saratoga Investment typically provides senior secured and subordinated debt, including first-lien, unitranche and second-lien loans, as well as mezzanine financing and equity investments.

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