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SAR Should I Buy

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Intellectia

Should You Buy Saratoga Investment Corp (SAR) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion
Hold
Latest Price
22.940
1 Day change
-1.33%
52 Week Range
25.640
Analysis Updated At
2026/04/17
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Saratoga Investment Corp (SAR) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has shown strong financial performance in its latest quarter, the technical indicators and options data suggest a neutral to slightly bearish sentiment in the short term. The lack of significant trading trends, news catalysts, or proprietary trading signals further supports a hold recommendation.

Technical Analysis

The MACD is positive and expanding, suggesting bullish momentum. RSI is neutral at 64.91, indicating no overbought or oversold conditions. Moving averages are converging, which does not provide a clear trend direction. Key resistance levels are at 23.173 and 23.722, while support levels are at 21.398 and 20.849. The pre-market price of 22.98 is near the pivot level of 22.285, suggesting limited immediate upside potential.

Options Data

Bearish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio

The high Open Interest Put-Call Ratio of 1.7 indicates a bearish sentiment among options traders, while the very low Option Volume Put-Call Ratio of 0.07 suggests limited put activity relative to calls. Overall, options data reflects mixed sentiment with a slight bearish tilt.

Technical Summary

StrongSellSellNeutralBuyStrongBuydotted line Image
Sell
7
Buy
6

Positive Catalysts

  • Strong financial performance in the latest quarter, with revenue up 5.96% YoY, net income up 35.82% YoY, and EPS up 15.62% YoY. These metrics indicate solid growth and profitability.

Neutral/Negative Catalysts

  • Gross margin dropped slightly by -0.47% YoY. No significant trading trends from hedge funds or insiders. No recent news or event-driven catalysts. Stock trend analysis suggests a 60% chance of minor gains (0.65%) in the next day but potential declines of -2.59% in the next week and -1.77% in the next month.

Financial Performance

In Q3 2026, Saratoga Investment Corp reported strong financial growth. Revenue increased by 5.96% YoY to $34,337,106, net income rose by 35.82% YoY to $11,999,984, and EPS grew by 15.62% YoY to 0.74. However, gross margin slightly declined by -0.47% YoY to 97.47%.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No recent analyst rating or price target changes are available for SAR.

Wall Street analysts forecast SAR stock price to rise
2 Analyst Rating
Wall Street analysts forecast SAR stock price to rise
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 23.250
sliders
Low
23
Averages
24
High
25
Current: 23.250
sliders
Low
23
Averages
24
High
25
B. Riley
Sean-Paul Adams
Neutral
downgrade
$23
AI Analysis
2025-10-16
Reason
B. Riley
Sean-Paul Adams
Price Target
$23
AI Analysis
2025-10-16
downgrade
Neutral
Reason
B. Riley analyst Sean-Paul Adams lowered the firm's price target on Saratoga Investment to $23 from $23.50 and keeps a Neutral rating on the shares. The firm says the company's fiscal Q2 report highlights the headline deployment and yield pressures the business development company group is facing. However, the analyst expects Saratoga to maintain stable dividends due to spillover levels.
Clear Street
Mickey Schleien
Hold
initiated
$24
2025-09-04
Reason
Clear Street
Mickey Schleien
Price Target
$24
2025-09-04
initiated
Hold
Reason
Clear Street analyst Mickey Schleien initiated coverage of Saratoga Investment with a Hold rating and $24 price target. The firm says that while the company has "ample" liquidity, declining base rates, its high leverage, and refinancing risk will limit earnings growth. Clear Street views Saratoga's valuation as balanced at current levels.
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