Saratoga Investment (NYSE:SAR) Issues Earnings Results, Misses Expectations By $0.03 EPS

Key Points

• Saratoga Investment missed quarterly earnings expectations: EPS came in at $0.46 versus the $0.49 consensus estimate, while revenue of $31.17 million was slightly below forecasts of $31.46 million.
• SAR shares fell 4.9% to $15.79 following the results, near the company’s 52-week low of $15.69 and below its 50-day and 200-day moving averages.
• The company declared a monthly dividend of $0.25 per share, equivalent to $3.00 annually and a 19.0% yield. Analysts maintain a consensus “Hold” rating with an average price target of $21.50.

Saratoga Investment (NYSE:SAR - Get Free Report) announced its quarterly earnings results on Tuesday. The financial services provider reported $0.46 earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.03), FiscalAI reports. The firm had revenue of $31.17 million for the quarter, compared to analysts' expectations of $31.46 million. Saratoga Investment had a net margin of 12.70% and a return on equity of 8.76%.

Saratoga Investment Trading Down 4.9%

SAR stock traded down $0.81 during trading on Tuesday, reaching $15.79. The company had a trading volume of 369,183 shares, compared to its average volume of 134,616. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.09 and a quick ratio of 0.09. Saratoga Investment has a 52 week low of $15.69 and a 52 week high of $24.09. The business has a 50 day moving average of $18.18 and a 200 day moving average of $20.52. The company has a market cap of $254.00 million, a P/E ratio of 15.79 and a beta of 0.57.

Saratoga Investment Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Tuesday, December 22nd. Investors of record on Thursday, December 3rd will be paid a $0.25 dividend. This represents a $3.00 dividend on an annualized basis and a yield of 19.0%. The ex-dividend date of this dividend is Thursday, December 3rd. Saratoga Investment's dividend payout ratio is presently 300.00%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on SAR shares. Zacks Research raised Saratoga Investment from a "strong sell" rating to a "hold" rating in a research note on Monday, September 7th. B. Riley Financial dropped their price objective on Saratoga Investment from $23.00 to $22.00 and set a "neutral" rating for the company in a report on Thursday, July 9th. Oppenheimer cut their price objective on 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. Finally, Weiss Ratings cut Saratoga Investment from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, July 8th. Six research analysts have rated the stock with a Hold rating, According to data from MarketBeat, Saratoga Investment has an average rating of "Hold" and a consensus price target of $21.50.

Saratoga Investment Company Profile

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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