Black Diamond Capital Management L.L.C., a prominent investment firm, has significantly reduced its stake in Saratoga Investment Corp. (NYSE:SAR), a leading financial services provider. According to the company’s recently filed Form 13F with the Securities & Exchange Commission (SEC), Black Diamond sold 509,570 shares of Saratoga Investment during the first quarter, resulting in a 53.6% decrease in its overall holdings. As a result of this transaction, Black Diamond now owns 441,770 shares of the financial institution’s stock.
Saratoga Investment constitutes approximately 6.4% of Black Diamond Capital Management L.L.C.’s portfolio, making it their fifth-largest holding. It is worth noting that Black Diamond Capital Management L.L.C. once held an ownership stake representing 3.72% of Saratoga Investment’s total value, which was valued at $11,168,000 as per the most recent filing with the SEC.
In addition to this investment update, Saratoga Investment recently announced the declaration of its quarterly dividend payment. The said dividend will be paid out on Thursday, September 28th. Shareholders who held positions in the company as of Thursday, September 14th will receive a dividend of $0.71 per share.
This dividend demonstrates an increase from Saratoga Investment’s previous quarterly payout of $0.70 per share—an encouraging sign for investors seeking reliable returns on their investments.
It is important to note that the ex-dividend date for this payment is Wednesday, September 13th—meaning anyone purchasing Saratoga Investment shares after that date will not be eligible to receive the forthcoming dividend payment.
At an annualized rate of $2.84 per share, this represents a considerable dividend payout ratio for Saratoga Investment—a substantial 127.85%. Moreover, shareholders can anticipate an attractive yield with it standing at an enticing 10.81%.
As Black Diamond Capital Management L.L.C. continues to adjust its portfolio holdings, it is clear that the firm sees potential elsewhere or has shifted its investment strategy. The reduction in their stake in Saratoga Investment might indicate an opportunity for other investors or reflect a strategic reshuffling of assets.
Investors and market analysts will undoubtedly keep a close watch on these developments, taking note of any further actions or statements from both Black Diamond Capital Management L.L.C. and Saratoga Investment Corp.
Ultimately, this adjustment in holdings should serve as a valuable piece of information for those interested in the financial services sector and could potentially shape investment strategies moving forward.
Madrigal Pharmaceuticals, Inc.
Updated on: 12/09/2023
Saratoga Investment Corp. Sees Increased Interest from Hedge Funds and Institutional Investors
Saratoga Investment Corp. (NYSE: SAR) has recently seen increased interest from various hedge funds and institutional investors, who have either added to or reduced their stakes in the company. One notable addition is Belpointe Asset Management LLC, which acquired a new position in Saratoga Investment during the fourth quarter, valuing it at approximately $25,000. Additionally, Fairfield Bush & Co., Ahrens Investment Partners LLC, Lazard Asset Management LLC, and Bank of America Corp DE have also acquired new stakes in the company worth $27,000, $32,000, $38,000, and $52,000 respectively. It is worth noting that institutional investors and hedge funds collectively own 14.57% of the company’s stock.
Several research firms have also provided their analysis of SAR. Raymond James downgraded Saratoga Investment from an “outperform” rating to a “market perform” rating in a research note on July 12th. StockNews.com weighed in as well by initiating coverage on Saratoga Investment with a “hold” rating on August 17th.
As of September 12th, shares of SAR opened at $26.28 on the New York Stock Exchange (NYSE). The stock has a 52-week low of $20.16 and a 52-week high of $28.87. With a debt-to-equity ratio of 0.10, quick ratio of 0.08, and current ratio of 0.08, Saratoga Investment exhibits favorable financial ratios. Its fifty-day moving average stands at $26.41 while its 200-day moving average is slightly lower at $25.93.
In terms of market capitalization, Saratoga Investment weighs in at approximately $314.83 million with a price-to-earnings (P/E) ratio of 12.00 and a beta value of 1.35.
The company’s most recent earnings results were released on July 10th. Saratoga Investment reported earnings per share (EPS) of $1.08 for the quarter, surpassing the consensus estimate by $0.17. The financial services provider also showcased a net margin of 22.55% and a return on equity of 11.94%. Furthermore, its revenue for the quarter amounted to $34.63 million, which exceeded the consensus estimate of $32.18 million.
Equities research analysts are projecting that Saratoga Investment Corp. will achieve earnings per share of 4.2 for the current fiscal year.
Overall, these recent developments involving hedge funds, institutional investors, and research firms reflect the complex nature of Saratoga Investment’s stock performance and market outlook as it enters new financial stages and navigates through industry trends. Market observers are eagerly awaiting further updates and announcements from the company to assess its future potential in the financial services sector.