Ares Capital Co. (NASDAQ:ARCC) has been given an average recommendation of “Buy” by the thirteen ratings firms that are covering the firm, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation and ten have issued a buy recommendation on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $16.22.
Several brokerages recently commented on ARCC. Oppenheimer started coverage on shares of Ares Capital in a research report on Tuesday, August 4th. They issued a “buy” rating and a $16.00 price target for the company. Citigroup increased their target price on shares of Ares Capital from $15.00 to $17.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Raymond James increased their target price on shares of Ares Capital from $15.50 to $16.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 5th. Zacks Investment Research upgraded shares of Ares Capital from a “hold” rating to a “buy” rating and set a $15.00 target price for the company in a research report on Tuesday, July 14th. Finally, JMP Securities increased their target price on shares of Ares Capital from $15.00 to $15.50 and gave the stock a “market outperform” rating in a research report on Wednesday, June 17th.
In other Ares Capital news, Director Robert L. Rosen purchased 5,000 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were bought at an average price of $14.17 per share, for a total transaction of $70,850.00. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Michael K. Parks bought 3,000 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was purchased at an average price of $14.31 per share, for a total transaction of $42,930.00. The disclosure for this purchase can be found here. In the last 90 days, insiders have bought 50,500 shares of company stock worth $719,480. 0.60% of the stock is currently owned by company insiders.
A number of large investors have recently bought and sold shares of the stock. Orion Portfolio Solutions LLC grew its stake in Ares Capital by 6.4% in the 2nd quarter. Orion Portfolio Solutions LLC now owns 12,651 shares of the investment management company’s stock valued at $183,000 after buying an additional 757 shares during the last quarter. Joel Isaacson & Co. LLC grew its stake in Ares Capital by 0.8% in the 2nd quarter. Joel Isaacson & Co. LLC now owns 112,361 shares of the investment management company’s stock valued at $1,624,000 after buying an additional 878 shares during the last quarter. SeaBridge Investment Advisors LLC grew its stake in Ares Capital by 0.8% in the 2nd quarter. SeaBridge Investment Advisors LLC now owns 110,570 shares of the investment management company’s stock valued at $1,598,000 after buying an additional 895 shares during the last quarter. Arkadios Wealth Advisors grew its stake in Ares Capital by 20.3% in the 1st quarter. Arkadios Wealth Advisors now owns 5,343 shares of the investment management company’s stock valued at $58,000 after buying an additional 900 shares during the last quarter. Finally, M&R Capital Management Inc. grew its stake in Ares Capital by 6.1% in the 2nd quarter. M&R Capital Management Inc. now owns 15,600 shares of the investment management company’s stock valued at $225,000 after buying an additional 900 shares during the last quarter. Institutional investors and hedge funds own 32.06% of the company’s stock.
Shares of NASDAQ:ARCC traded down $0.02 during mid-day trading on Monday, hitting $14.34. The stock had a trading volume of 1,741,570 shares, compared to its average volume of 2,263,248. The company has a debt-to-equity ratio of 1.11, a quick ratio of 1.54 and a current ratio of 1.54. The company has a market cap of $6.06 billion, a PE ratio of 8.30 and a beta of 1.14. Ares Capital has a 12-month low of $7.90 and a 12-month high of $19.33. The company’s 50 day moving average is $14.22 and its 200-day moving average is $13.63.
Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Tuesday, August 4th. The investment management company reported $0.39 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.38 by $0.01. The business had revenue of $350.00 million during the quarter, compared to the consensus estimate of $353.26 million. Ares Capital had a net margin of 2.95% and a return on equity of 10.45%. The firm’s quarterly revenue was down 8.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.47 EPS. On average, equities research analysts predict that Ares Capital will post 1.58 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid a dividend of $0.40 per share. The ex-dividend date was Monday, September 14th. This represents a $1.60 annualized dividend and a dividend yield of 11.16%. Ares Capital’s dividend payout ratio (DPR) is 84.66%.
Ares Capital Company Profile
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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