Saratoga Investment Corp. (SAR)

Saratoga Investment Corp. (SAR) stock dropped by 9.88% due to company's financial results for the fiscal third quarter of 2024 in its 8-K filing released on January 9, 2024. Here are the key highlights and insights from SAR's performance.

Financial Highlights

• Net Investment Income (NII): SAR reported NII of $1.09 per share, reflecting a 5% decrease compared to the previous quarter but a substantial 27% increase compared to the same quarter last year.
• Adjusted Net Investment Income: The company reported an adjusted NII of $1.01 per share, indicating a 6% sequential decline from the last quarter but a remarkable 31% year-over-year growth.
• Assets Under Management (AUM): SAR's AUM increased to $1.114 billion, representing a significant 13.4% year-over-year growth.
• Net Asset Value (NAV): SAR's NAV stands at $359.6 million, with a NAV per share of $27.42.
• Dividend Yield: The company announced an impressive 11.0% dividend yield based on the recent stock price.
• Portfolio Activity: SAR reported $35.6 million in originations and $2.1 million in repayments during the quarter.

Financial Performance and Challenges

• SAR's fiscal performance for the quarter was influenced by rising interest rates, resulting in increased earnings from its floating rate assets. However, the company faced a 5% sequential decline in NII per share, primarily attributed to the interest rate environment. Despite this decline, NII per share exhibited substantial growth compared to the same quarter last year.