Saratoga Investment (NYSE:SAR) Posts Quarterly Earnings Results, Meets Estimates

Key Points

• Saratoga Investment reported Q earnings of $0.53 EPS, meeting analysts' estimates, but revenue came in at $6.85 million versus consensus of $30.85 million.
• The company announced a monthly dividend of $0.25 (a reported 12.9% yield122.95%, suggesting the high yield may be unsustainable.
• Shares slid to $23.34 after the report; the stock has a market cap of about $378.6M, a P/E of 9.57, and an average analyst rating of Hold with a $23.63 price target.

Saratoga Investment (NYSE:SAR - Get Free Report) announced its earnings results on Tuesday. The financial services provider reported $0.53 earnings per share for the quarter, hitting analysts' consensus estimates of $0.53, FiscalAI reports. The firm had revenue of $6.85 million during the quarter, compared to analyst estimates of $30.85 million. Saratoga Investment had a net margin of 30.61% and a return on equity of 9.19%.

Saratoga Investment Price Performance

NYSE:SAR traded down $0.55 on Tuesday, hitting $23.34. The company had a trading volume of 108,279 shares, compared to its average volume of 106,421. The stock has a market capitalization of $378.59 million, a price-to-earnings ratio of 9.57 and a beta of 0.55. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.17. The firm has a 50 day moving average of $22.59 and a two-hundred day moving average of $22.80. Saratoga Investment has a 52 week low of $20.78 and a 52 week high of $25.64.

Saratoga Investment Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, June 23rd. Investors of record on Thursday, June 4th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This represents a c) annualized dividend and a yield of 12.9%. Saratoga Investment's dividend payout ratio is presently 122.95%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Saratoga Investment in a report on Friday, March 27th. Six equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $23.63.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Brevan Howard Capital Management LP bought a new position in Saratoga Investment during the third quarter worth $431,000. Jane Street Group LLC bought a new position in Saratoga Investment during the second quarter worth $355,000. Dynamic Technology Lab Private Ltd bought a new position in Saratoga Investment during the fourth quarter worth $305,000. Aquatic Capital Management LLC raised its stake in Saratoga Investment by 4,814.7% during the third quarter. Aquatic Capital Management LLC now owns 12,729 shares of the financial services provider's stock worth $310,000 after buying an additional 12,470 shares during the last quarter. Finally, Osaic Holdings Inc. raised its stake in Saratoga Investment by 178.2% during the fourth quarter. Osaic Holdings Inc. now owns 18,403 shares of the financial services provider's stock worth $425,000 after buying an additional 11,787 shares during the last quarter. 19.09% of the stock is owned by institutional investors.

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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