Oppenheimer set a $18.00 target price on Ares Capital (NASDAQ:ARCC) in a report issued on Thursday morning. The brokerage currently has a buy rating on the investment management company’s stock.
A number of other research analysts have also recently commented on ARCC. BidaskClub cut Ares Capital from a hold rating to a sell rating in a research report on Wednesday, July 11th. National Securities reaffirmed a buy rating and set a $19.00 price target on shares of Ares Capital in a research report on Monday, August 6th. Citigroup initiated coverage on Ares Capital in a research report on Thursday, August 23rd. They set a buy rating and a $19.00 price target on the stock. Finally, Zacks Investment Research raised Ares Capital from a hold rating to a buy rating and set a $18.00 price target on the stock in a research report on Wednesday, October 24th. Two research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. Ares Capital has an average rating of Buy and an average price target of $18.13.
Shares of NASDAQ ARCC opened at $17.15 on Thursday. Ares Capital has a one year low of $15.03 and a one year high of $17.58. The company has a debt-to-equity ratio of 0.62, a quick ratio of 2.41 and a current ratio of 2.41. The firm has a market cap of $7.31 billion, a PE ratio of 12.34, a PEG ratio of 3.53 and a beta of 0.60.
Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, October 31st. The investment management company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. Ares Capital had a return on equity of 9.34% and a net margin of 72.13%. The firm had revenue of $342.00 million for the quarter, compared to analysts’ expectations of $320.15 million. During the same quarter in the prior year, the firm earned $0.36 EPS. The business’s revenue for the quarter was up 16.3% compared to the same quarter last year. As a group, research analysts expect that Ares Capital will post 1.62 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 28th. Investors of record on Friday, December 14th will be issued a dividend of $0.39 per share. The ex-dividend date is Thursday, December 13th. This represents a $1.56 dividend on an annualized basis and a yield of 9.10%. Ares Capital’s dividend payout ratio (DPR) is 112.23%.
In related news, Director Eric B. Siegel acquired 6,990 shares of the company’s stock in a transaction that occurred on Wednesday, September 12th. The shares were acquired at an average price of $17.30 per share, with a total value of $120,927.00. Following the acquisition, the director now owns 36,630 shares of the company’s stock, valued at approximately $633,699. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Bates Ann Torre acquired 9,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 29th. The shares were bought at an average cost of $17.44 per share, for a total transaction of $156,960.00. Following the acquisition, the director now directly owns 20,000 shares in the company, valued at approximately $348,800. The disclosure for this purchase can be found here. Insiders have purchased a total of 16,590 shares of company stock worth $288,055 in the last three months. 0.49% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently modified their holdings of ARCC. Millennium Management LLC raised its holdings in shares of Ares Capital by 65.3% in the 2nd quarter. Millennium Management LLC now owns 3,408,182 shares of the investment management company’s stock valued at $56,065,000 after acquiring an additional 1,346,837 shares in the last quarter. Standard Life Aberdeen plc purchased a new stake in shares of Ares Capital in the 2nd quarter valued at about $17,133,000. Caisse DE Depot ET Placement DU Quebec purchased a new stake in shares of Ares Capital in the 2nd quarter valued at about $5,807,000. PVG Asset Management Corp purchased a new stake in shares of Ares Capital in the 2nd quarter valued at about $5,419,000. Finally, LGT Capital Partners LTD. raised its holdings in shares of Ares Capital by 16.0% in the 3rd quarter. LGT Capital Partners LTD. now owns 1,520,000 shares of the investment management company’s stock valued at $26,129,000 after acquiring an additional 210,000 shares in the last quarter. 40.47% of the stock is currently owned by institutional investors and hedge funds.
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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