Zacks Investment Research Lowers Saratoga Investment Corp. (SAR) to Sell
According to Zacks, “Saratoga Investment Corporation, formerly known as GSC Investment Corp., is a specialty finance company that invests primarily in leveraged loans and mezzanine debt issued by U.S. middle-market companies, both through direct lending and through participation in loan syndicates. The Company has been elected to be treated as a business development company. “
Separately, Compass Point started coverage on Saratoga Investment Corp. in a research note on Tuesday, July 26th. They set a neutral rating and a $18.00 price objective for the company.
Saratoga Investment Corp. (NYSE:SAR) opened at 18.60 on Friday. Saratoga Investment Corp. has a one year low of $13.41 and a one year high of $18.75. The company’s 50-day moving average price is $17.84 and its 200-day moving average price is $16.75. The firm has a market cap of $106.78 million, a price-to-earnings ratio of 13.95 and a beta of 0.38.
Saratoga Investment Corp. (NYSE:SAR) last issued its quarterly earnings data on Wednesday, July 13th. The company reported $0.46 earnings per share for the quarter, missing analysts’ consensus estimates of $0.51 by $0.05. Saratoga Investment Corp. had a net margin of 24.83% and a return on equity of 9.23%. On average, analysts anticipate that Saratoga Investment Corp. will post $1.91 EPS for the current year.
The company also recently announced a special dividend, which was paid on Monday, September 5th. Shareholders of record on Wednesday, August 24th were issued a dividend of $0.20 per share. This represents a yield of 9.84%. The ex-dividend date was Monday, August 22nd. Saratoga Investment Corp.’s dividend payout ratio is presently 129.32%.
In other news, CEO Christian L. Oberbeck bought 1,586 shares of Saratoga Investment Corp. stock in a transaction on Wednesday, July 6th. The shares were bought at an average price of $17.08 per share, with a total value of $27,088.88. Following the acquisition, the chief executive officer now directly owns 511,006 shares in the company, valued at approximately $8,727,982.48. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 31.80% of the company’s stock.
Several hedge funds have recently made changes to their positions in SAR. Black Diamond Capital Management L.L.C. increased its stake in shares of Saratoga Investment Corp. by 0.4% in the second quarter. Black Diamond Capital Management L.L.C. now owns 604,510 shares of the company’s stock valued at $10,204,000 after buying an additional 2,307 shares during the period. Foundry Partners LLC increased its stake in shares of Saratoga Investment Corp. by 1.9% in the second quarter. Foundry Partners LLC now owns 98,742 shares of the company’s stock valued at $1,669,000 after buying an additional 1,804 shares during the period. Relative Value Partners Group LLC increased its stake in shares of Saratoga Investment Corp. by 8.7% in the second quarter. Relative Value Partners Group LLC now owns 86,816 shares of the company’s stock valued at $1,432,000 after buying an additional 6,949 shares during the period. Mendon Capital Advisors Corp increased its stake in shares of Saratoga Investment Corp. by 2.7% in the second quarter. Mendon Capital Advisors Corp now owns 55,753 shares of the company’s stock valued at $942,000 after buying an additional 1,443 shares during the period. Finally, RMB Capital Management LLC increased its stake in shares of Saratoga Investment Corp. by 32.1% in the first quarter. RMB Capital Management LLC now owns 42,231 shares of the company’s stock valued at $662,000 after buying an additional 10,271 shares during the period. 20.45% of the stock is currently owned by institutional investors and hedge funds.
About Saratoga Investment Corp.
Saratoga Investment Corp. is a specialty finance company. The Company is an externally managed, closed-end, non-diversified management investment company. The Company invests primarily in leveraged loans and mezzanine debt issued by private middle-market companies in the United States. Its investment objective is to generate current income and, to a lesser extent, capital appreciation from its investments.
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