Saratoga Investment's Annual ROE Hits 9.1%, But Q4 NII Per Share Drops
SAR is trading near its 52-week low of $20.78 (12% above the low).
Summary
Saratoga Investment Corp. announced its fiscal year and fourth-quarter 2026 financial results, reporting a 13.4% year-over-year increase in Assets Under Management (AUM) to $1.109 billion and a strong annual Return on Equity (ROE) of 9.1%, surpassing the prior year and industry average. The company also reported $101.1 million in net deployments for Q4 and an increase in the annual dividend to $3.74 per share. However, the report also showed significant declines in Net Investment Income (NII) per share, both year-over-year ($2.32 vs. $3.81) and quarter-over-quarter ($0.48 vs. $0.61). Additionally, Net Asset Value (NAV) per share declined to $24.42 from $25.86 year-over-year, and the fourth quarter saw negative earnings per share of ($0.16). Traders will need to weigh the strong operational growth and dividend increase against the weaker profitability metrics, which the CEO attributed to declining short-term interest rates and tightening spreads, and monitor future NII trends and NAV performance.
At the time of this announcement, SAR was trading at $23.22 on NYSE in the Finance sector, with a market capitalization of approximately $387.6M. The 52-week trading range was $20.78 to $25.64. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.