Saratoga Investment Corp (NYSE:SAR) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analysts assign Saratoga Investment a consensus “Reduce” rating: Five analysts recommend holding the stock, while one rates it a sell. The average 12-month price target is $21.50.
• SAR shares opened at $18.41, below their 50-day and 200-day moving averages, after the company reported quarterly EPS of $0.47—below the $0.54 consensus estimate.
• The company declared a monthly dividend of $0.25 per share, representing an annualized yield of 16.3%, although its reported payout ratio is elevated at 300%.

Saratoga Investment Corp (NYSE:SAR - Get Free Report) has earned a consensus recommendation of "Reduce" from the six research firms that are currently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $21.50.

A number of equities analysts recently weighed in on the stock. Weiss Ratings lowered shares of Saratoga Investment from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, July 8th. Oppenheimer cut their target price on Saratoga Investment from $22.00 to $21.00 and set a "market perform" rating on the stock in a research note on Thursday, July 9th. Zacks Research cut Saratoga Investment from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 9th. B. Riley Financial lowered their price target on Saratoga Investment from $23.00 to $22.00 and set a "neutral" rating on the stock in a report on Thursday, July 9th. Finally, Wall Street Zen cut Saratoga Investment from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th.

Saratoga Investment Stock Performance

Shares of SAR stock opened at $18.41 on Monday. The company has a market capitalization of $296.05 million, a price-to-earnings ratio of 18.41 and a beta of 0.55. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.09 and a current ratio of 0.09. Saratoga Investment has a one year low of $17.34 and a one year high of $25.64. The company's 50-day moving average is $20.12 and its 200 day moving average is $21.74.

Saratoga Investment (NYSE:SAR - Get Free Report) last issued its earnings results on Tuesday, July 7th. The financial services provider reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.07). Saratoga Investment had a return on equity of 8.76% and a net margin of 12.70%.The firm had revenue of $2.10 million during the quarter, compared to analysts' expectations of $31.38 million. Sell-side analysts expect that Saratoga Investment will post 1.94 EPS for the current fiscal year.

Saratoga Investment Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Wednesday, September 23rd. Shareholders of record on Thursday, September 3rd will be paid a dividend of $0.25 per share. The ex-dividend date is Thursday, September 3rd. This represents a c) annualized dividend and a yield of 16.3%. Saratoga Investment's dividend payout ratio is currently 300.00%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BNP Paribas Financial Markets bought a new stake in Saratoga Investment in the 3rd quarter worth approximately $25,000. Quantbot Technologies LP bought a new position in shares of Saratoga Investment during the 3rd quarter valued at $36,000. Advisory Services Network LLC bought a new position in shares of Saratoga Investment during the 3rd quarter valued at $45,000. Kestra Advisory Services LLC purchased a new position in shares of Saratoga Investment in the 4th quarter worth $46,000. Finally, Triumph Capital Management boosted its stake in shares of Saratoga Investment by 66.2% in the 2nd quarter. Triumph Capital Management now owns 2,950 shares of the financial services provider's stock worth $66,000 after buying an additional 1,175 shares during the last quarter. Institutional investors own 19.09% of the company's stock.

About Saratoga Investment

Saratoga Investment Corp. is a closed-end, externally managed investment company that seeks to generate current income and total return through a diversified portfolio of private U.S. companies. Trading on the New York Stock Exchange under the ticker SAR, the firm primarily targets middle-market businesses across a broad range of industries, including industrials, healthcare, consumer products, financial services and technology. Its investment approach combines debt and equity instruments, providing flexible capital solutions such as first-lien and second-lien secured loans, mezzanine debt, preferred equity and common equity positions.

As an actively managed vehicle, Saratoga Investment works closely with portfolio companies’ management teams to support growth initiatives, operational improvements, and strategic transactions.

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