Saratoga Investment Corp (NYSE:SAR) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Saratoga Investment Corp (NYSE:SAR) has received an average rating of "Hold" from five analysts, with a 1-year price target set at $24.25.
• The company declared a monthly dividend of $0.25, resulting in an annualized yield of 12.3%, with a payout ratio currently at 121.46%.
• Saratoga's latest quarterly earnings report showed an EPS of $0.66, slightly below analysts' expectations, while reporting revenue of $35.22 million.

Shares of Saratoga Investment Corp (NYSE:SAR - Get Free Report) have received an average rating of "Hold" from the five analysts that are covering the company, MarketBeat reports. Five research analysts have rated the stock with a hold rating. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $24.25.

A number of research firms have commented on SAR. Compass Point lowered Saratoga Investment from a "buy" rating to a "neutral" rating and reduced their price target for the company from $25.25 to $24.25 in a research report on Monday, June 9th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Saratoga Investment in a research report on Saturday, September 27th.

Saratoga Investment Price Performance

SAR traded down $0.03 on Friday, reaching $24.46. The stock had a trading volume of 133,344 shares, compared to its average volume of 105,254. Saratoga Investment has a fifty-two week low of $21.10 and a fifty-two week high of $26.49. The firm has a 50-day moving average of $24.87 and a 200-day moving average of $24.53. 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 company has a market capitalization of $390.15 million, a price-to-earnings ratio of 7.10 and a beta of 0.66.

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

Saratoga Investment Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Thursday, December 18th. Shareholders of record on Tuesday, December 2nd will be issued a $0.25 dividend. The ex-dividend date is Tuesday, December 2nd. This represents a c) annualized dividend and a yield of 12.3%. Saratoga Investment's dividend payout ratio is presently 121.46%.

Institutional Trading of Saratoga Investment

Several institutional investors and hedge funds have recently modified their holdings of the stock. Bartlett & CO. Wealth Management LLC increased its position in shares of Saratoga Investment by 300.0% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 2,000 shares of the financial services provider's stock valued at $51,000 after acquiring an additional 1,500 shares during the last quarter. Laurel Wealth Advisors LLC boosted its holdings in shares of Saratoga Investment by 2,380.1% in the second quarter. Laurel Wealth Advisors LLC now owns 5,977 shares of the financial services provider's stock worth $148,000 after acquiring an additional 5,736 shares during the period. Osaic Holdings Inc. boosted its stake in Saratoga Investment by 24.0% during the second quarter. Osaic Holdings Inc. now owns 6,256 shares of the financial services provider's stock valued at $155,000 after buying an additional 1,211 shares during the period. Sunbelt Securities Inc. boosted its stake in Saratoga Investment by 36.4% during the first quarter. Sunbelt Securities Inc. now owns 6,932 shares of the financial services provider's stock valued at $176,000 after buying an additional 1,850 shares during the period. Finally, Concurrent Investment Advisors LLC bought a new stake in Saratoga Investment during the second quarter valued at $242,000. 19.09% of the stock is owned by hedge funds and other institutional investors.

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.

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