Saratoga Investment (SAR) Downgraded to “Sell” at Zacks Investment Research

Saratoga Investment (NYSE:SAR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports.

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. “

Other equities analysts have also recently issued reports about the company. LADENBURG THALM/SH SH cut Saratoga Investment from a “buy” rating to a “neutral” rating and set a $24.00 target price for the company. in a report 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 report on Monday, April 15th. Finally, National Securities reissued a “neutral” rating and issued a $24.00 target price on shares of Saratoga Investment in a report on Friday. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company’s stock. Saratoga Investment currently has an average rating of “Hold” and a consensus target price of $24.00.

Saratoga Investment stock traded up $0.30 during trading hours on Tuesday, hitting $25.15. The stock had a trading volume of 100 shares, compared to its average volume of 33,715. The stock has a market cap of $187.97 million, a price-to-earnings ratio of 9.56 and a beta of 0.67. Saratoga Investment has a fifty-two week low of $18.60 and a fifty-two week high of $28.30.

Saratoga Investment (NYSE:SAR) last posted its quarterly earnings results on Wednesday, May 8th. The financial services provider reported $0.66 EPS for the quarter, beating the consensus estimate of $0.58 by $0.08. The firm had revenue of $12.98 million during the quarter, compared to analysts’ expectations of $12.77 million. Saratoga Investment had a return on equity of 11.07% and a net margin of 38.80%. As a group, sell-side analysts expect that Saratoga Investment will post 2.4 earnings per share for the current year.

Several institutional investors and hedge funds have recently modified their holdings of the company. PFG Advisors acquired a new stake in Saratoga Investment during the 4th quarter valued at $893,000. BB&T Securities LLC acquired a new stake in Saratoga Investment during the 4th quarter valued at $488,000. Private Portfolio Partners LLC acquired a new stake in Saratoga Investment during the 1st quarter valued at $311,000. Ladenburg Thalmann Financial Services Inc. increased its holdings in Saratoga Investment by 10.3% during the 1st quarter. Ladenburg Thalmann Financial Services Inc. now owns 125,799 shares of the financial services provider’s stock valued at $2,803,000 after purchasing an additional 11,792 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in Saratoga Investment by 82.9% during the 1st quarter. JPMorgan Chase & Co. now owns 21,698 shares of the financial services provider’s stock valued at $483,000 after purchasing an additional 9,835 shares in the last quarter. 15.92% of the stock is owned by institutional investors and hedge funds.

Saratoga Investment Company Profile

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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