Saratoga Investment (NYSE:SAR) Shares Pass Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Saratoga Investment (SAR) crossed above its 200‑day moving average ($22.79), trading as high as $23.47 and last at $23.19 on Monday with about 99,172 shares changing hands.
• The company declared a monthly dividend of $0.25 (ex‑div June 4, pay June 23) implying a 12.9% yield, but the dividend payout ratio is 122.95%, suggesting the payout may be unsustainable.
• Analysts have a consensus "Hold" rating with an average target of $23.63; the stock trades at a P/E of 9.5 and a market cap of roughly $376 million, with institutional ownership around 19%.

Saratoga Investment Corp (NYSE:SAR - Get Free Report) crossed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $22.79 and traded as high as $23.47. Saratoga Investment shares last traded at $23.1920, with a volume of 99,172 shares changing hands.

Wall Street Analysts Forecast Growth

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

Saratoga Investment Price Performance

The company has a market cap of $376.17 million, a price-to-earnings ratio of 9.50 and a beta of 0.54. The company has a fifty day moving average price of $22.67 and a two-hundred day moving average price of $22.79. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.17.

Saratoga Investment Dividend Announcement

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 given a dividend of $0.25 per share. This represents a c) annualized dividend and a dividend yield of 12.9%. The ex-dividend date is Thursday, June 4th. Saratoga Investment's dividend payout ratio (DPR) is 122.95%.

Hedge Funds Weigh In On Saratoga Investment

Several hedge funds and other institutional investors have recently modified their holdings of SAR. BNP Paribas Financial Markets bought a new position in Saratoga Investment in the 3rd quarter valued at $25,000. Quantbot Technologies LP bought a new position in Saratoga Investment in the 3rd quarter valued at $36,000. Advisory Services Network LLC bought a new position in Saratoga Investment in the 3rd quarter valued at $45,000. Kestra Advisory Services LLC bought a new position in Saratoga Investment in the 4th quarter valued at $46,000. Finally, Daytona Street Capital LLC bought a new position in Saratoga Investment in the 4th quarter valued at $51,000. 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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