Zacks Investment Research upgraded shares of Ares Capital (NASDAQ:ARCC) from a sell rating to a hold rating in a research note published on Thursday.
According to Zacks, “ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. “
A number of other research analysts have also issued reports on ARCC. BidaskClub lowered shares of Ares Capital from a sell rating to a strong sell rating in a research note on Tuesday, December 5th. TheStreet upgraded shares of Ares Capital from a c+ rating to a b- rating in a research note on Tuesday, December 12th. Compass Point initiated coverage on shares of Ares Capital in a research note on Wednesday, December 6th. They set a buy rating and a $17.50 price target on the stock. Wedbush initiated coverage on shares of Ares Capital in a research note on Monday, November 27th. They set an outperform rating and a $18.00 price target on the stock. Finally, National Securities reiterated a buy rating and set a $19.00 price target on shares of Ares Capital in a research note on Friday, November 3rd. One research analyst has rated the stock with a sell rating, three have issued a hold rating and eight have given a buy rating to the company’s stock. The stock currently has an average rating of Buy and a consensus price target of $18.00.
Ares Capital (ARCC) opened at $15.98 on Thursday. The company has a quick ratio of 1.29, a current ratio of 1.04 and a debt-to-equity ratio of 0.68. The company has a market cap of $6,812.26, a price-to-earnings ratio of 10.18, a price-to-earnings-growth ratio of 3.42 and a beta of 0.62. Ares Capital has a one year low of $15.03 and a one year high of $17.87.
Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Tuesday, February 13th. The investment management company reported $0.38 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.01. The company had revenue of $307.00 million for the quarter, compared to analyst estimates of $301.38 million. Ares Capital had a net margin of 57.50% and a return on equity of 8.43%. Ares Capital’s quarterly revenue was up 17.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.42 earnings per share. equities research analysts anticipate that Ares Capital will post 1.56 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 30th. Investors of record on Thursday, March 15th will be issued a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 9.51%. The ex-dividend date of this dividend is Wednesday, March 14th. Ares Capital’s dividend payout ratio is currently 96.82%.
In related news, CFO Penelope F. Roll acquired 3,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 15th. The shares were purchased at an average price of $15.81 per share, with a total value of $47,430.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In the last three months, insiders have purchased 3,600 shares of company stock worth $57,082. 0.45% of the stock is owned by insiders.
A number of hedge funds have recently added to or reduced their stakes in ARCC. Arrowstreet Capital Limited Partnership boosted its holdings in Ares Capital by 118.4% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 4,600,653 shares of the investment management company’s stock worth $72,322,000 after buying an additional 2,494,297 shares in the last quarter. Two Sigma Investments LP boosted its holdings in Ares Capital by 1,217.0% during the fourth quarter. Two Sigma Investments LP now owns 1,739,696 shares of the investment management company’s stock worth $27,348,000 after buying an additional 1,607,603 shares in the last quarter. State of New Jersey Common Pension Fund D boosted its holdings in Ares Capital by 12.5% during the third quarter. State of New Jersey Common Pension Fund D now owns 3,600,000 shares of the investment management company’s stock worth $59,004,000 after buying an additional 400,000 shares in the last quarter. Two Sigma Advisers LP boosted its holdings in Ares Capital by 43.8% during the fourth quarter. Two Sigma Advisers LP now owns 955,455 shares of the investment management company’s stock worth $15,020,000 after buying an additional 291,000 shares in the last quarter. Finally, Schroder Investment Management Group boosted its holdings in Ares Capital by 19.0% during the fourth quarter. Schroder Investment Management Group now owns 1,629,951 shares of the investment management company’s stock worth $25,623,000 after buying an additional 260,007 shares in the last quarter. 43.62% of the stock is currently owned by hedge funds and other institutional investors.
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Ares Capital Company Profile
Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.
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