Saratoga Investment (SAR) Soars 4.05% Ahead of Earnings

Saratoga Investment (SAR) shares rose 0.32% today, marking an eighth consecutive day of gains, with an increase of 4.05% over the past eight days. The stock price reached its highest level since April 2025, with an intraday gain of 0.43%.

The strategy of purchasing Saratoga Investment (SAR) shares after they reached a recent high and holding them for one week yielded mixed results over the past five years. While the total shareholder return (TSR) for the five-year period was 144%, which exceeded the share price return of 45%, the annualized TSR was 19.8%, indicating a modest growth rate.

Recent High Point: The recent high point for SAR was $25.36, as of July 7, 2025.

One-Week Holding: Holding SAR shares for one week after reaching this high point would likely expose investors to short-term volatility, as evidenced by the stock's 52-week range of $21.10 to $25.36, with a significant portion of this range occurring within a week.

Dividend Consideration: It's important to note that SAR pays a monthly dividend of $0.25, which, as a percentage of the recent stock price, works out to approximately 0.99%. This dividend yield, while modest, could contribute to the overall return, especially if reinvested.

Market Performance: The broader market, including SAR, experienced fluctuations, with the stock price rising by 5.1% over the past twelve months. This suggests that a buy-and-hold strategy, even after a recent high, can be effective in the long term, although it requires tolerance for short-term volatility.

In conclusion, while the strategy of buying SAR after a recent high and holding for one week contributed to overall growth over five years, its effectiveness was tempered by the volatility inherent in the stock's performance. Investors should consider their risk tolerance and investment horizon before adopting such a strategy.

Saratoga Investment Corp (SAR) is scheduled to release its Q1 earnings on July 8, 2025, after the market closes. Analysts are predicting a significant decline in earnings per share (EPS), with forecasts indicating a 31.4% drop. The company's previous performance showed that it missed EPS estimates by $0.14 in the last quarter, leading to a 7.94% decline in share price the following day. Investors are eagerly awaiting the upcoming earnings announcement, hoping for positive guidance for the next quarter.

In addition to the earnings release, Saratoga Investment will go ex-dividend on July 8, 2025, with a dividend of $0.25 per share. This dividend payout is part of the company's strategy to return value to shareholders, which has contributed to a 13.0% increase in share price over the past year, reflecting a positive long-term trend. The upcoming dividend and earnings report are expected to influence investor sentiment and potentially impact the stock's performance in the near term.