Redhawk Wealth Advisors Inc. Makes New $845,000 Investment in Saratoga Investment Corp $SAR

Key Points

• Redhawk Wealth Advisors Inc. acquired a new stake in Saratoga Investment Corp valued at approximately $845,000, owning about 0.22% of the company as of recent filings.
• Saratoga Investment recently announced a monthly dividend of $0.25 per share with a dividend yield of 12.1%, albeit with a payout ratio of 121.46%.
• Despite a revenue of $35.22 million in the last quarter, Saratoga's earnings per share of $0.66 missed estimates by $0.03, leading Compass Point to downgrade its rating from "buy" to "neutral."

Redhawk Wealth Advisors Inc. purchased a new position in shares of Saratoga Investment Corp (NYSE:SAR - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 34,092 shares of the financial services provider's stock, valued at approximately $845,000. Redhawk Wealth Advisors Inc. owned about 0.22% of Saratoga Investment at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of SAR. Hennion & Walsh Asset Management Inc. raised its stake in shares of Saratoga Investment by 33.4% during the first quarter. Hennion & Walsh Asset Management Inc. now owns 193,168 shares of the financial services provider's stock valued at $4,893,000 after purchasing an additional 48,351 shares during the period. Ethos Financial Group LLC bought a new stake in Saratoga Investment during the first quarter valued at $1,153,000. Connor Clark & Lunn Investment Management Ltd. increased its stake in Saratoga Investment by 147.7% during the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 29,509 shares of the financial services provider's stock valued at $747,000 after purchasing an additional 17,595 shares during the last quarter. Cambridge Investment Research Advisors Inc. bought a new stake in Saratoga Investment during the first quarter valued at $398,000. Finally, Northern Trust Corp acquired a new position in shares of Saratoga Investment during the fourth quarter valued at $271,000. 19.09% of the stock is owned by institutional investors and hedge funds.

Saratoga Investment Stock Performance

Shares of SAR traded down $0.04 during mid-day trading on Friday, hitting $24.85. The company's stock had a trading volume of 117,261 shares, compared to its average volume of 104,281. The stock's 50-day moving average is $25.02 and its two-hundred day moving average is $24.50. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.32 and a current ratio of 0.32. The firm has a market capitalization of $396.42 million, a PE ratio of 10.06 and a beta of 0.67. Saratoga Investment Corp has a one year low of $21.10 and a one year high of $26.49.

Saratoga Investment (NYSE:SAR - Get Free Report) last released its quarterly earnings data on Tuesday, July 8th. The financial services provider reported $0.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.69 by ($0.03). Saratoga Investment had a return on equity of 12.71% and a net margin of 24.85%.The company had revenue of $35.22 million for the quarter, compared to analyst estimates of $32.75 million. As a group, sell-side analysts anticipate that Saratoga Investment Corp will post 3.93 EPS for the current year.

Saratoga Investment Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Thursday, December 18th. Shareholders of record on Tuesday, December 2nd will be issued a dividend of $0.25 per share. The ex-dividend date is Tuesday, December 2nd. This represents a c) dividend on an annualized basis and a yield of 12.1%. Saratoga Investment's dividend payout ratio (DPR) is 121.46%.

Analyst Ratings Changes

Separately, Compass Point downgraded shares of Saratoga Investment from a "buy" rating to a "neutral" rating and reduced their price objective for the stock from $25.25 to $24.25 in a report on Monday, June 9th. Four research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Saratoga Investment presently has an average rating of "Hold" and an average target price of $24.25.

Saratoga Investment Company Profile

Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. It structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity.