Tag: NYSE:SAR

Following the release of its earnings report, Saratoga Investment Corp. (NYSE: SAR) shares saw a significant increase on the US stock charts after close of the market. After-hours trading showed an 8.14% rise, with the SAR stock reaching $25.50, following a regular session increase of 1.38%, closing at $23.58.

Strong Financial Performance in Key Areas

Saratoga’s improved financial performance was a driving factor behind the stock surge. The company reported increases in its Net Investment Income (NII), Adjusted NII, and Net Asset Value (NAV) compared to the previous quarter. A notable highlight was the sequential adjusted NII per share increase of 26.7%, which included one-time accrued interest benefits from the Knowland sale.

Additionally, Saratoga saw a $0.22 per share increase in NAV, and the company declared a dividend of $0.74 per share, representing a 4.2% rise. This includes continued over-earning of the current dividend, reflecting the company’s strong financial health.

Resolution of Key Investments and Dividend Yield

Saratoga’s stronger results were further underscored by the full repayment and resolution of its Knowland investment. This marked the resolution of all four of the company’s non-accrual or watchlist investments over the past year.

Saratoga has returned to an increasing NAV per share, coupled with substantial over-earning of record dividend levels. The annualized second-quarter dividend of $0.74 per share, based on the stock price of $23.26 on October 7, 2024, represents a 12.7% dividend yield.

Portfolio Growth and Investment Strategy

This quarter’s earnings were buoyed by favorable interest rate levels, with Saratoga benefiting from floating rate assets while its long-term liabilities remained fixed. The company’s net interest margins remained stable, contributing to overall growth.

Saratoga also reported approximately $56.7 million in new originations across two new portfolio companies and two follow-on investments, with a repayment of $20.5 million, resulting in a net investment increase of $36.2 million. As of August 31, 2024, Saratoga held $52.5 million in borrowings across its revolving credit facilities.

Saratoga Investment Corp. (NYSE: SAR) concluded the regular trading session with a modest decline of nearly 1%, settling at $24.15. Nevertheless, Saratoga Investment’s shares experienced a slight upturn in the after-hours trading period, gaining 1.45% and reaching $24.50. This increase followed the release of the company’s financial results shortly after the market’s regular closing hours, which contributed to the stabilization of SAR stock.

Saratoga Investment (SAR) has unveiled its fiscal year 2024 second-quarter financial report, culminating on August 31, 2023. The prominent highlights of SAR’s achievement encompass a substantial elevation in assets under administration (AUM) to $1.099 billion, marking a 15.1% surge compared to the corresponding timeframe last year and a 1.4% increment from the prior quarter.

The corporation’s net investment earnings (NII) reached $35.5 million, signifying a noteworthy augmentation of 62.5% in contrast to the same trimester in 2022. Total expenditures demonstrated a decline from the prior quarter but an escalation from the corresponding duration last year.

Saratoga Investment announced an NII per unit of currency of $1.15 for the quarter, a conspicuous amelioration from earlier quarters. Furthermore, the organization’s return on ownership for the twelve months culminating on August 31, 2023, surged to 9.6%, showcasing its expanding profitability.

The net asset value (NAV) of SAR reached $362.1 million, with NAV per unit of currency at $28.44 as of August 31, 2023. Saratoga Investment disclosed a yearly dividend of $0.71 for each stock unit and adjusted its net investment earnings to $1.08 per share. These numbers result in a noteworthy 11.7% dividend return and a remarkable 17.8% profit return, computed against the stock price of $24.24 per share as of October 6, 2023.

This considerable surplus in dividend coverage, amounting to 37 cents per share for this quarter or $1.48 annualized per share, serves to enhance NAV and fortify Saratoga Investment (SAR)’s position for potential growth and resilience in the face of adverse developments.