Saratoga Investment Corp (SAR) Given Neutral Rating at National Securities
Saratoga Investment Corp (NYSE:SAR)‘s stock had its “neutral” rating reaffirmed by equities researchers at National Securities in a report issued on Monday. They presently have a $23.00 target price on the financial services provider’s stock. National Securities’ price target suggests a potential upside of 3.28% from the company’s previous close.
The analysts wrote, “• SAR posted adjusted NII/share of $0.62 versus our estimate of $0.52 and consensus estimates of $0.51. NII/share, which doesn’t include the $789K change in accrued capital gains incentive fees, was $0.49/share, slightly below our estimate of $0.52/share but still exceeding the $0.48/share dividend.
• We expect the dividend to be increased steadily until we model the dividend to level out at $0.51/share in fiscal 2Q19.
• Non-accruals at cost decreased Q/Q to $9.8 million or 2.9% of the portfolio from $20.1 million or 5.9% of the portfolio. Previous non-accrual My Alarm Center was sold for a $7.7 million realized loss (consistent with prior quarter marks) during the quarter. As a result of the restructuring, SAR’s second lien debt in the company was converted into equity.
• The realized losses from My Alarm Center were offset by a $1.8 million realized gain on Mercury Network and a $2.1 million write-up of Easy Ice, which was recapitalized with Saratoga rolling its remaining investment into a second lien loan with a lower cost revolver provided by Madison Capital ahead of them, effectively lowering the cost of capital meaningfully for Easy Ice.
• We are revising our fiscal 2018 adjusted NII/share estimate to $2.15 from $2.06 and our 2019 adjusted NII/share estimate to $2.07 from $2.09.”
SAR has been the topic of a number of other reports. Zacks Investment Research cut shares of Saratoga Investment Corp from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 12th. Royal Bank Of Canada reissued an “outperform” rating on shares of Saratoga Investment Corp in a research note on Thursday, September 7th. Maxim Group began coverage on shares of Saratoga Investment Corp in a report on Thursday, September 7th. They issued a “buy” rating and a $23.00 target price on the stock. Janney Montgomery Scott began coverage on shares of Saratoga Investment Corp in a report on Friday, October 6th. They issued a “neutral” rating on the stock. Finally, Compass Point upgraded shares of Saratoga Investment Corp from a “neutral” rating to a “buy” rating in a report on Friday. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The company presently has an average rating of “Buy” and an average target price of $23.33.
Saratoga Investment Corp (NYSE SAR) opened at 22.27 on Monday. Saratoga Investment Corp has a 1-year low of $17.17 and a 1-year high of $23.78. The stock has a 50 day moving average of $21.41 and a 200 day moving average of $21.39. The stock has a market capitalization of $133.69 million, a P/E ratio of 12.11 and a beta of 0.48.
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A number of large investors have recently added to or reduced their stakes in the business. Legal & General Group Plc lifted its holdings in Saratoga Investment Corp by 18.4% in the 2nd quarter. Legal & General Group Plc now owns 15,098 shares of the financial services provider’s stock valued at $314,000 after purchasing an additional 2,349 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in shares of Saratoga Investment Corp during the 2nd quarter worth about $223,000. GSA Capital Partners LLP purchased a new position in shares of Saratoga Investment Corp during the 2nd quarter worth about $215,000. JPMorgan Chase & Co. lifted its holdings in shares of Saratoga Investment Corp by 925.6% during the 1st quarter. JPMorgan Chase & Co. now owns 10,256 shares of the financial services provider’s stock worth $222,000 after acquiring an additional 9,256 shares during the period. Finally, Northern Trust Corp purchased a new position in shares of Saratoga Investment Corp during the 2nd quarter worth about $213,000. Institutional investors own 17.04% of the company’s stock.
Saratoga Investment Corp Company Profile
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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