Saratoga Investment Corp (NYSE:SAR) Receives Average Rating of "Hold" from Analysts

Key Points

• Shares have an average analyst rating of Hold from six firms, with a mean 1‑year price target of $23.63.
• The company announced a monthly dividend of $0.25 (ex‑dividend June 4, payable June 23), implying a 13.6% yield but a high payout ratio of 122.95%.
• In the latest quarter SAR reported EPS of $0.61 (beating the $0.59 consensus) while revenue of $23.41M missed expectations of $31.35M; the stock has a market cap of $358.2M and a P/E of 9.05.

Shares of Saratoga Investment Corp (NYSE:SAR - Get Free Report) have received an average rating of "Hold" from the six ratings firms that are currently covering the company, MarketBeat reports. Six equities research analysts have rated the stock with a hold rating. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $23.6250.

SAR has been the topic of several analyst reports. Zacks Research upgraded shares of Saratoga Investment from a "strong sell" rating to a "hold" rating in a research note on Monday, December 15th. Weiss Ratings reissued a "hold (c)" rating on shares of Saratoga Investment in a research report on Monday, December 29th.

Hedge Funds Weigh In On Saratoga Investment

A number of institutional investors have recently modified their holdings of SAR. Closed End Fund Advisors Inc. acquired a new stake in shares of Saratoga Investment in the fourth quarter worth $3,680,000. Lido Advisors LLC grew its stake in Saratoga Investment by 43.1% in the 2nd quarter. Lido Advisors LLC now owns 186,253 shares of the financial services provider's stock valued at $4,619,000 after buying an additional 56,125 shares during the last quarter. Brevan Howard Capital Management LP bought a new position in Saratoga Investment in the 3rd quarter worth $431,000. Focus Financial Network Inc. bought a new position in Saratoga Investment in the 3rd quarter worth $382,000. Finally, Jane Street Group LLC acquired a new position in Saratoga Investment during the 2nd quarter worth $355,000. Institutional investors own 19.09% of the company's stock.

Saratoga Investment Stock Performance

Shares of SAR stock opened at $22.08 on Friday. Saratoga Investment has a fifty-two week low of $21.10 and a fifty-two week high of $25.64. The stock's 50-day moving average is $23.08 and its two-hundred day moving average is $23.08. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.25 and a quick ratio of 0.25. The firm has a market cap of $358.19 million, a P/E ratio of 9.05 and a beta of 0.55.

Saratoga Investment (NYSE:SAR - Get Free Report) last announced its quarterly earnings results on Wednesday, January 7th. The financial services provider reported $0.61 EPS for the quarter, beating the consensus estimate of $0.59 by $0.02. The business had revenue of $23.41 million during the quarter, compared to analysts' expectations of $31.35 million. Saratoga Investment had a return on equity of 9.19% and a net margin of 30.61%. Analysts predict that Saratoga Investment will post 3.93 earnings per share for the current fiscal year.

Saratoga Investment Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Tuesday, June 23rd. Investors of record on Thursday, June 4th will be issued a $0.25 dividend. This represents a c) annualized dividend and a yield of 13.6%. The ex-dividend date is Thursday, June 4th. Saratoga Investment's payout ratio is 122.95%.

Saratoga Investment Company Profile

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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