Saratoga Investment Corp (NYSE:SAR) Stock Now Rated "Reduce" by Sell-Side Analysts

Key Points

• Analysts are bearish overall: Saratoga Investment has a consensus “Reduce” rating from five brokerages, with an average 12-month price target of $19.67.
• Quarterly results fell short of expectations: The company reported EPS of $0.46 versus a $0.49 estimate and revenue of $31.17 million versus a $31.46 million estimate.
• The company announced a $0.25 monthly dividend, equivalent to a stated annualized yield of 23.1%; CEO Christian Oberbeck also bought 15,000 shares at $14.89 each.

Shares of Saratoga Investment Corp (NYSE:SAR - Get Free Report) have been given a consensus rating of "Reduce" by the five brokerages that are covering the firm, MarketBeat reports. One analyst has rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $19.67.

A number of brokerages recently weighed in on SAR. B. Riley Financial decreased their price target on shares of Saratoga Investment from $22.00 to $20.00 and set a "neutral" rating on the stock in a research note on Thursday, October 8th. Compass Point restated a "neutral" rating and set a $18.00 price target on shares of Saratoga Investment in a report on Thursday, October 8th. Wall Street Zen upgraded shares of Saratoga Investment from a "sell" rating to a "hold" rating in a research report on Saturday, October 10th. Weiss Ratings downgraded Saratoga Investment from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 16th. Finally, Zacks Research upgraded Saratoga Investment from a "strong sell" rating to a "hold" rating in a research note on Monday, September 7th.

Insider Activity at Saratoga Investment

In other news, CEO Christian Oberbeck acquired 15,000 shares of the stock in a transaction that occurred on Thursday, October 8th. The shares were bought at an average cost of $14.89 per share, for a total transaction of $223,350.00. Following the acquisition, the chief executive officer owned 15,000 shares in the company, valued at approximately $223,350. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 10.60% of the stock is owned by insiders.

Institutional Trading of Saratoga Investment

Several hedge funds have recently added to or reduced their stakes in SAR. Cetera Investment Advisers boosted its stake in Saratoga Investment by 2.2% during the first quarter. Cetera Investment Advisers now owns 22,301 shares of the financial services provider's stock worth $488,000 after buying an additional 476 shares in the last quarter. Royal Bank of Canada lifted its holdings in Saratoga Investment by 3.2% during the first quarter. Royal Bank of Canada now owns 17,950 shares of the financial services provider's stock valued at $393,000 after purchasing an additional 557 shares during the last quarter. Triumph Capital Management lifted its position in Saratoga Investment by 24.6% in the third quarter. Triumph Capital Management now owns 3,675 shares of the financial services provider's stock valued at $61,000 after purchasing an additional 725 shares during the last quarter. Western Wealth Management LLC bought a new position in Saratoga Investment in the 1st quarter valued at approximately $70,000. Finally, Focus Financial Network Inc. boosted 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 acquiring an additional 4,042 shares during the last quarter. Institutional investors own 19.09% of the company's stock.

Saratoga Investment Stock Up 0.5%

Saratoga Investment stock opened at $12.97 on Friday. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.13 and a quick ratio of 0.13. Saratoga Investment has a fifty-two week low of $12.72 and a fifty-two week high of $24.07. The firm has a market capitalization of $201.81 million, a PE ratio of -51.88 and a beta of 0.62. The company's 50-day moving average is $15.89 and its 200-day moving average is $20.28.

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

Saratoga Investment Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Tuesday, December 22nd. Stockholders of record on Thursday, December 3rd will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $3.00 annualized dividend and a dividend yield of 23.1%. Saratoga Investment's payout ratio is currently -1,200.00%.

Saratoga Investment Company Profile

Saratoga Investment Corp. NYSE: SAR is a closed-end, non-diversified business development company that provides financing to lower middle-market companies in the United States. The company invests primarily in established businesses and seeks to support their growth, acquisitions, recapitalizations, and other strategic initiatives.

Saratoga Investment's investment portfolio generally includes senior and subordinated debt, unitranche loans, and equity investments. Through its wholly owned Saratoga Investment Advisors subsidiary, the company also manages a Small Business Investment Company (SBIC) subsidiary, allowing it to provide government-supported financing to qualifying small and mid-sized businesses.

The company is based in New York and focuses on U.S.-based businesses across a range of industries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.