A number of other equities research analysts have also recently commented on the stock. Oppenheimer started coverage on shares of Ares Capital in a report on Tuesday, August 4th. They issued a buy rating and a $16.00 price target on the stock. Zacks Investment Research raised shares of Ares Capital from a hold rating to a buy rating and set a $15.00 target price on the stock in a report on Tuesday, July 14th. JMP Securities boosted their target price on shares of Ares Capital from $15.00 to $15.50 and gave the company a market outperform rating in a report on Wednesday, June 17th. Citigroup boosted their target price on shares of Ares Capital from $15.00 to $17.00 and gave the company a buy rating in a report on Wednesday, August 5th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Ares Capital from $19.50 to $15.50 and set an overweight rating on the stock in a report on Monday, May 4th. Two investment analysts have rated the stock with a sell rating and ten have assigned a buy rating to the company’s stock. Ares Capital currently has a consensus rating of Buy and a consensus target price of $16.22.
Shares of NASDAQ:ARCC traded down $0.05 during mid-day trading on Thursday, reaching $14.23. The company had a trading volume of 28,632 shares, compared to its average volume of 2,114,768. The company has a current ratio of 1.54, a quick ratio of 1.54 and a debt-to-equity ratio of 1.11. The firm has a market cap of $5.98 billion, a price-to-earnings ratio of 8.18 and a beta of 1.14. The company’s 50-day moving average price is $14.30 and its 200-day moving average price is $14.49. Ares Capital has a one year low of $7.90 and a one year high of $19.33.
Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Tuesday, August 4th. The investment management company reported $0.39 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $0.01. The company had revenue of $350.00 million for the quarter, compared to analysts’ expectations of $353.26 million. Ares Capital had a net margin of 2.95% and a return on equity of 10.45%. Ares Capital’s revenue was down 8.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.47 EPS. On average, research analysts anticipate that Ares Capital will post 1.58 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be paid a $0.40 dividend. The ex-dividend date of this dividend is Monday, September 14th. This represents a $1.60 dividend on an annualized basis and a yield of 11.24%. Ares Capital’s dividend payout ratio (DPR) is currently 84.66%.
In related news, Director Michael K. Parks purchased 2,000 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were acquired at an average cost of $14.71 per share, with a total value of $29,420.00. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.60% of the stock is owned by insiders.
Several institutional investors and hedge funds have recently bought and sold shares of the company. Legal & General Group Plc increased its stake in shares of Ares Capital by 8.8% during the first quarter. Legal & General Group Plc now owns 2,760,882 shares of the investment management company’s stock valued at $29,776,000 after buying an additional 222,276 shares during the period. UBS Group AG boosted its position in shares of Ares Capital by 16.1% during the second quarter. UBS Group AG now owns 2,511,433 shares of the investment management company’s stock valued at $36,290,000 after purchasing an additional 347,363 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. bought a new stake in shares of Ares Capital during the first quarter valued at approximately $24,465,000. Bruni J V & Co. Co. boosted its position in shares of Ares Capital by 1.0% during the first quarter. Bruni J V & Co. Co. now owns 1,915,243 shares of the investment management company’s stock valued at $20,646,000 after purchasing an additional 18,790 shares in the last quarter. Finally, 1832 Asset Management L.P. boosted its position in shares of Ares Capital by 5.0% during the first quarter. 1832 Asset Management L.P. now owns 1,900,523 shares of the investment management company’s stock valued at $20,362,000 after purchasing an additional 90,400 shares in the last quarter. 33.06% of the stock is currently owned by hedge funds and other institutional investors.
About Ares Capital
Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.
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