Maxim Group Reiterates Buy Rating for Saratoga Investment (NYSE:SAR)

Saratoga Investment (NYSE:SAR)‘s stock had its “buy” rating reissued by analysts at Maxim Group in a research report issued on Friday, AnalystRatings.com reports. They presently have a $27.00 price target on the financial services provider’s stock. Maxim Group’s target price points to a potential upside of 9.89% from the stock’s current price.

The analysts wrote, “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.””

Several other research firms also recently commented on SAR. Compass Point downgraded shares of Saratoga Investment from a “buy” rating to a “neutral” rating in a research note on Monday, April 15th. National Securities restated a “neutral” rating and issued a $24.00 price target on shares of Saratoga Investment in a research note on Friday, May 17th. LADENBURG THALM/SH SH downgraded shares of Saratoga Investment from a “buy” rating to a “neutral” rating and set a $24.00 price target for the company. in a research note on Friday, May 10th. They noted that the move was a valuation call. Finally, Zacks Investment Research upgraded shares of General Moly from a “sell” rating to a “hold” rating in a research note on Thursday. Five equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $24.25.

Saratoga Investment stock opened at $24.57 on Friday. Saratoga Investment has a fifty-two week low of $18.60 and a fifty-two week high of $25.65. The firm has a 50 day moving average of $24.37. The firm has a market cap of $197.09 million, a P/E ratio of 9.34 and a beta of 0.64.

Saratoga Investment (NYSE:SAR) last posted its earnings results on Wednesday, July 10th. The financial services provider reported $0.60 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.57 by $0.03. Saratoga Investment had a net margin of 44.66% and a return on equity of 10.75%. The firm had revenue of $12.75 million during the quarter, compared to the consensus estimate of $12.21 million. Analysts predict that Saratoga Investment will post 2.4 EPS for the current year.

Several large investors have recently bought and sold shares of SAR. North Star Investment Management Corp. purchased a new stake in shares of Saratoga Investment during the 1st quarter worth $25,000. Macquarie Group Ltd. lifted its position in shares of Saratoga Investment by 68.8% during the 4th quarter. Macquarie Group Ltd. now owns 1,939 shares of the financial services provider’s stock worth $39,000 after purchasing an additional 790 shares during the last quarter. Advisors Asset Management Inc. purchased a new stake in shares of Saratoga Investment during the 1st quarter worth $198,000. Wiley BROS. Aintree Capital LLC purchased a new stake in shares of Saratoga Investment during the 2nd quarter worth $225,000. Finally, Private Portfolio Partners LLC purchased a new stake in shares of Saratoga Investment during the 1st quarter worth $311,000. Institutional investors and hedge funds own 16.66% of the company’s stock.

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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