Ares Capital Co. (NASDAQ:ARCC) has been given an average recommendation of “Buy” by the thirteen ratings firms that are covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation and ten have issued a buy recommendation on the company. The average 1 year price objective among brokers that have covered the stock in the last year is $16.22.
Several research firms have weighed in on ARCC. BidaskClub downgraded Ares Capital from a “hold” rating to a “sell” rating in a research note on Thursday, August 20th. JMP Securities boosted their price objective on Ares Capital from $15.00 to $15.50 and gave the company a “market outperform” rating in a report on Wednesday, June 17th. Raymond James boosted their price objective on Ares Capital from $15.50 to $16.00 and gave the company an “outperform” rating in a report on Wednesday, August 5th. Zacks Investment Research raised Ares Capital from a “hold” rating to a “buy” rating and set a $15.00 price objective for the company in a report on Tuesday, July 14th. Finally, Oppenheimer started coverage on Ares Capital in a report on Tuesday, August 4th. They issued a “buy” rating and a $16.00 price objective for the company.
In other Ares Capital news, insider Michael Lewis Smith purchased 35,000 shares of Ares Capital stock in a transaction that occurred on Monday, September 14th. The stock was bought at an average price of $14.25 per share, with a total value of $498,750.00. Following the acquisition, the insider now owns 151,012 shares of the company’s stock, valued at approximately $2,151,921. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Robert L. Rosen purchased 5,000 shares of Ares Capital stock in a transaction that occurred on Wednesday, August 19th. The stock was acquired at an average cost of $14.17 per share, with a total value of $70,850.00. The disclosure for this purchase can be found here. Insiders purchased a total of 50,500 shares of company stock valued at $719,480 in the last ninety days. 0.60% of the stock is currently owned by insiders.
A number of large investors have recently bought and sold shares of ARCC. Orion Portfolio Solutions LLC grew its position in Ares Capital by 6.4% in the second quarter. Orion Portfolio Solutions LLC now owns 12,651 shares of the investment management company’s stock worth $183,000 after acquiring an additional 757 shares during the period. Joel Isaacson & Co. LLC lifted its stake in Ares Capital by 0.8% during the second quarter. Joel Isaacson & Co. LLC now owns 112,361 shares of the investment management company’s stock worth $1,624,000 after purchasing an additional 878 shares in the last quarter. SeaBridge Investment Advisors LLC lifted its stake in Ares Capital by 0.8% during the second quarter. SeaBridge Investment Advisors LLC now owns 110,570 shares of the investment management company’s stock worth $1,598,000 after purchasing an additional 895 shares in the last quarter. Arkadios Wealth Advisors lifted its stake in Ares Capital by 20.3% during the first quarter. Arkadios Wealth Advisors now owns 5,343 shares of the investment management company’s stock worth $58,000 after purchasing an additional 900 shares in the last quarter. Finally, M&R Capital Management Inc. lifted its stake in Ares Capital by 6.1% during the second quarter. M&R Capital Management Inc. now owns 15,600 shares of the investment management company’s stock worth $225,000 after purchasing an additional 900 shares in the last quarter. Institutional investors own 32.06% of the company’s stock.
Ares Capital stock traded down $0.02 during trading hours on Monday, hitting $14.34. 1,741,570 shares of the stock traded hands, compared to its average volume of 2,263,248. The company has a debt-to-equity ratio of 1.11, a current ratio of 1.54 and a quick ratio of 1.54. The firm’s 50 day moving average price is $14.22 and its 200-day moving average price is $13.63. The stock has a market capitalization of $6.06 billion, a price-to-earnings ratio of 8.30 and a beta of 1.14. Ares Capital has a 1 year low of $7.90 and a 1 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 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.38 by $0.01. The business had revenue of $350.00 million for the quarter, compared to the consensus estimate of $353.26 million. Ares Capital had a return on equity of 10.45% and a net margin of 2.95%. The company’s quarterly revenue was down 8.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.47 EPS. Research analysts forecast that Ares Capital will post 1.58 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a $0.40 dividend. The ex-dividend date of this dividend was Monday, September 14th. This represents a $1.60 dividend on an annualized basis and a yield of 11.16%. Ares Capital’s payout ratio is 84.66%.
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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