When a company such as Saratoga Investment Corp New conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the SAR split history from start to finish, an original position size of 1000 shares would have turned into 100 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Saratoga Investment Corp New shares, starting with a $10,000 purchase of SAR, presented on a split-history-adjusted basis factoring in the complete SAR split history.

About Saratoga Investment Corp New

Saratoga Investment is a non-diversified closed end management investment company and a business development company. Co.'s investment objective is to create risk-adjusted returns by generating current income and long-term capital appreciation from its investments. Co.'s investments generally provide financing for change of ownership transactions, acquisitions, recapitalizations and initiatives in partnership with business owners, management teams and financial sponsors. According to our SAR split history records, Saratoga Investment Corp New has had 1 split.

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