Zacks Investment Research upgraded shares of Ares Capital (NASDAQ:ARCC) from a sell rating to a hold rating in a research report report published on Monday.
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 equities research analysts have also commented on ARCC. Keefe, Bruyette & Woods set a $19.00 price objective on shares of Ares Capital and gave the stock a buy rating in a report on Friday, October 6th. Jefferies Group reissued a buy rating and set a $19.50 price objective on shares of Ares Capital in a report on Friday, November 3rd. Citigroup assumed coverage on shares of Ares Capital in a report on Wednesday, September 20th. They set an outperform rating and a $18.00 price objective on the stock. TheStreet lowered shares of Ares Capital from a b rating to a c+ rating in a report on Monday, November 13th. Finally, Wedbush assumed coverage on shares of Ares Capital in a report on Monday, November 27th. They set an outperform rating and a $18.00 price objective on the stock. One analyst has rated the stock with a sell rating, three have given a hold rating and eight have issued a buy rating to the company’s stock. Ares Capital has a consensus rating of Buy and a consensus target price of $18.00.
Ares Capital (NASDAQ:ARCC) last announced its earnings results on Thursday, November 2nd. The investment management company reported $0.36 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.01. The business had revenue of $294.00 million during the quarter, compared to analysts’ expectations of $295.02 million. Ares Capital had a net margin of 45.78% and a return on equity of 8.60%. During the same quarter last year, the company posted $0.43 EPS. equities analysts predict that Ares Capital will post 1.38 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Shareholders of record on Friday, December 15th were issued a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 9.58%. The ex-dividend date of this dividend was Thursday, December 14th. Ares Capital’s dividend payout ratio is currently 120.63%.
In related news, Director Michael J. Arougheti acquired 8,365 shares of the firm’s stock in a transaction on Friday, November 3rd. The shares were purchased at an average price of $15.85 per share, with a total value of $132,585.25. Following the acquisition, the director now directly owns 937,054 shares in the company, valued at $14,852,305.90. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. In the last three months, insiders have acquired 8,965 shares of company stock worth $142,315. Insiders own 0.45% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of ARCC. Legacy Advisors LLC bought a new position in shares of Ares Capital in the 3rd quarter valued at about $128,000. Joel Isaacson & Co. LLC bought a new position in shares of Ares Capital in the 3rd quarter valued at about $164,000. Sumitomo Mitsui Trust Holdings Inc. bought a new position in shares of Ares Capital in the 3rd quarter valued at about $167,000. Arete Wealth Advisors LLC bought a new position in shares of Ares Capital in the 2nd quarter valued at about $180,000. Finally, Putnam FL Investment Management Co. bought a new position in shares of Ares Capital in the 3rd quarter valued at about $181,000. 43.60% of the stock is currently owned by institutional investors.
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About Ares Capital
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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