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

Key Points

• Analysts have a consensus “Reduce” rating on Saratoga Investment, with one sell rating and five hold ratings. The average 12-month price target is $21.50.
• SAR shares opened at $18.96, down 1.6%, and remain below their 50-day and 200-day moving averages. The company’s latest quarterly results missed expectations, reporting $0.47 in EPS versus the $0.54 consensus estimate.
• Saratoga Investment announced a monthly dividend of $0.25 per share, implying a 15.8% annualized yield, while hedge funds and other institutional investors own 19.09% of the stock.

Shares of Saratoga Investment Corp (NYSE:SAR - Get Free Report) have been given an average rating of "Reduce" by the six ratings firms that are currently covering the firm, Marketbeat reports. One equities 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 brokers that have updated their coverage on the stock in the last year is $21.50.

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Closed End Fund Advisors Inc. purchased a new stake in Saratoga Investment in the fourth quarter valued at approximately $3,680,000. Dynamic Technology Lab Private Ltd acquired a new stake in Saratoga Investment during the 4th quarter worth $305,000. Osaic Holdings Inc. grew its position in Saratoga Investment by 24.0% during the 2nd quarter. Osaic Holdings Inc. now owns 6,256 shares of the financial services provider's stock worth $155,000 after purchasing an additional 1,211 shares during the last quarter. Steward Partners Investment Advisory LLC grew its position in Saratoga Investment by 610.1% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 5,212 shares of the financial services provider's stock worth $120,000 after purchasing an additional 4,478 shares during the last quarter. Finally, Advisory Services Network LLC acquired a new position in Saratoga Investment in the third quarter valued at $45,000. Hedge funds and other institutional investors own 19.09% of the company's stock.

Saratoga Investment Stock Down 1.6%

Saratoga Investment stock opened at $18.96 on Thursday. The stock has a market cap of $309.32 million, a PE ratio of 18.96 and a beta of 0.54. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.09 and a quick ratio of 0.09. The stock's fifty day moving average is $21.22 and its two-hundred day moving average is $22.25. Saratoga Investment has a 1-year low of $17.34 and a 1-year high of $25.64.

Saratoga Investment (NYSE:SAR - Get Free Report) last released its quarterly earnings data on Tuesday, July 7th. The financial services provider reported $0.47 EPS for the quarter, missing analysts' consensus estimates of $0.54 by ($0.07). The business had revenue of ($12.15) million during the quarter, compared to analysts' expectations of $31.38 million. Saratoga Investment had a net margin of 12.70% and a return on equity of 8.76%. On average, sell-side analysts expect that Saratoga Investment will post 1.94 EPS for the current fiscal year.

Saratoga Investment Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Wednesday, September 23rd. Investors of record on Thursday, September 3rd will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a c) dividend on an annualized basis and a dividend yield of 15.8%. Saratoga Investment's dividend payout ratio is 300.00%.

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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