Redhawk Wealth Advisors Inc. Invests $845,000 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. bought a new position in shares of Saratoga Investment Corp (NYSE:SAR - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 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 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Cambridge Investment Research Advisors Inc. acquired a new stake in Saratoga Investment during the first quarter worth $398,000. Northern Trust Corp acquired a new stake in Saratoga Investment during the fourth quarter worth $271,000. Jane Street Group LLC acquired a new stake in Saratoga Investment during the fourth quarter worth $252,000. Ethos Financial Group LLC acquired a new stake in Saratoga Investment during the first quarter worth $1,153,000. Finally, Hennion & Walsh Asset Management Inc. increased its stake in 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 worth $4,893,000 after acquiring an additional 48,351 shares during the last quarter. Institutional investors and hedge funds own 19.09% of the company's stock.

Saratoga Investment Stock Down 0.3%

SAR traded down $0.09 on Monday, hitting $24.76. 77,094 shares of the company were exchanged, compared to its average volume of 104,962. Saratoga Investment Corp has a twelve month low of $21.10 and a twelve month high of $26.49. The company has a market cap of $394.99 million, a price-to-earnings ratio of 10.03 and a beta of 0.67. The company has a current ratio of 0.32, a quick ratio of 0.32 and a debt-to-equity ratio of 0.18. The firm has a 50-day moving average price of $25.02 and a two-hundred day moving average price of $24.51.

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

Saratoga Investment Announces Dividend

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

Analysts Set New Price Targets

Separately, Compass Point cut Saratoga Investment from a "buy" rating to a "neutral" rating and cut their target price for the stock from $25.25 to $24.25 in a research note on Monday, June 9th. Four investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, Saratoga Investment has an average rating of "Hold" and a consensus 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.