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.
