Maxim Group reiterated their buy rating on shares of Saratoga Investment (NYSE:SAR) in a research report report published on Friday morning, AnalystRatings.com reports. They currently have a $27.00 target price on the financial services provider’s stock.
“SAR reported F1Q20 adjusted/core NII (excluding incentive fee accrual related to unrealized capital gains) of $0.60 versus its F1Q20 dividend of $0.55, up from $0.54 in F4Q19. SAR has now raised its dividend for 19 consecutive quarters. Based on over- coverage and management optimism regarding the investment pipeline, we expect SAR to continue to raise its dividend by $0.01/share for each quarter through FY21 (which would produce a F4Q21 yield of 10.3% on current NAV). We are maintaining our price target at $27. With: 1) a relatively low-risk strategy of focusing on senior secured, floating-rate loans, 2) a strong credit quality record, and 3) top-tier performance metrics, SAR deserves to trade at a level similar to high-quality peers, in our view. Our price target equates to 1.12x NAV (versus 1.14x previously), which is inline with high-quality peers.”,” Maxim Group’s analyst commented.
Several other equities research analysts have also recently commented on the company. Zacks Investment Research upgraded General Moly from a sell rating to a hold rating in a research note on Thursday, July 11th. LADENBURG THALM/SH SH cut Saratoga Investment from a buy rating to a neutral rating and set a $24.00 price objective on the stock. in a research note on Friday, May 10th. They noted that the move was a valuation call. Compass Point cut Saratoga Investment from a buy rating to a neutral rating in a research note on Monday, April 15th. Finally, National Securities reiterated a neutral rating and set a $24.00 price objective on shares of Saratoga Investment in a research note on Friday, May 17th. Five investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company. Saratoga Investment presently has a consensus rating of Hold and a consensus target price of $24.25.
NYSE SAR opened at $24.76 on Friday. The company has a market cap of $197.77 million, a PE ratio of 9.41 and a beta of 0.64. The company has a 50 day moving average price of $24.36. Saratoga Investment has a 52 week low of $18.60 and a 52 week high of $25.65.
Saratoga Investment (NYSE:SAR) last released its earnings results on Wednesday, July 10th. The financial services provider reported $0.60 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.57 by $0.03. The firm had revenue of $12.75 million for the quarter, compared to analysts’ expectations of $12.21 million. Saratoga Investment had a return on equity of 10.75% and a net margin of 44.66%. As a group, sell-side analysts expect that Saratoga Investment will post 2.39 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, June 27th. Investors of record on Thursday, June 13th were issued a dividend of $0.55 per share. The ex-dividend date of this dividend was Wednesday, June 12th. This is a positive change from Saratoga Investment’s previous quarterly dividend of $0.54. This represents a $2.20 dividend on an annualized basis and a dividend yield of 8.89%. Saratoga Investment’s payout ratio is presently 83.65%.
Hedge funds have recently bought and sold shares of the stock. Wiley BROS. Aintree Capital LLC bought a new position in shares of Saratoga Investment in the second quarter valued at about $225,000. Belpointe Asset Management LLC raised its holdings in Saratoga Investment by 3.7% during the 1st quarter. Belpointe Asset Management LLC now owns 16,295 shares of the financial services provider’s stock worth $363,000 after purchasing an additional 581 shares during the last quarter. Advisors Asset Management Inc. bought a new stake in Saratoga Investment during the 1st quarter worth about $198,000. Private Portfolio Partners LLC bought a new stake in Saratoga Investment during the 1st quarter worth about $311,000. Finally, PFG Advisors raised its holdings in Saratoga Investment by 1.1% during the 1st quarter. PFG Advisors now owns 39,142 shares of the financial services provider’s stock worth $981,000 after purchasing an additional 439 shares during the last quarter. 16.66% of the stock is currently owned by institutional investors and hedge funds.
About Saratoga Investment
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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