Ares Capital Corp. (NASDAQ:ARCC) Given Average Recommendation of “Buy” by Brokerages
Shares of Ares Capital Corp. (NASDAQ:ARCC) have been given a consensus rating of “Buy” by the eleven analysts that are currently covering the stock. Four research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $16.75.
Several brokerages have recently weighed in on ARCC. Jefferies Group reaffirmed a “buy” rating on shares of Ares Capital Corp. in a research note on Tuesday, May 24th. National Securities reaffirmed a “neutral” rating and set a $16.00 target price on shares of Ares Capital Corp. in a research note on Thursday, August 4th. Keefe, Bruyette & Woods upped their target price on Ares Capital Corp. from $17.00 to $17.50 and gave the stock an “outperform” rating in a research note on Thursday, August 4th. JMP Securities upped their target price on Ares Capital Corp. from $16.00 to $17.00 and gave the stock a “market outperform” rating in a research note on Tuesday, August 9th. Finally, Zacks Investment Research raised Ares Capital Corp. from a “sell” rating to a “hold” rating in a research note on Friday, July 29th.
Ares Capital Corp. (NASDAQ:ARCC) opened at 15.44 on Wednesday. The firm’s 50-day moving average is $15.70 and its 200 day moving average is $14.90. Ares Capital Corp. has a 1-year low of $12.31 and a 1-year high of $16.43.
Ares Capital Corp. (NASDAQ:ARCC) last announced its earnings results on Wednesday, August 3rd. The investment management company reported $0.39 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.38 by $0.01. Ares Capital Corp. had a return on equity of 9.44% and a net margin of 41.39%. During the same quarter in the prior year, the business posted $0.37 earnings per share. Equities analysts predict that Ares Capital Corp. will post $1.53 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 30th. Shareholders of record on Thursday, September 15th will be issued a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 9.84%. The ex-dividend date is Tuesday, September 13th. Ares Capital Corp.’s payout ratio is currently 113.43%.
In related news, insider Mitchell S. Goldstein bought 6,472 shares of the company’s stock in a transaction on Monday, August 15th. The stock was bought at an average cost of $15.45 per share, for a total transaction of $99,992.40. Following the acquisition, the insider now directly owns 195,358 shares in the company, valued at $3,018,281.10. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.57% of the stock is owned by company insiders.
Hedge funds have recently modified their holdings of the stock. Pioneer Investment Management Inc. boosted its stake in shares of Ares Capital Corp. by 1.2% in the fourth quarter. Pioneer Investment Management Inc. now owns 625,079 shares of the investment management company’s stock valued at $8,908,000 after buying an additional 7,171 shares during the last quarter. Nomura Asset Management Co. Ltd. boosted its position in Ares Capital Corp. by 0.6% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 735,123 shares of the investment management company’s stock worth $10,475,000 after buying an additional 4,040 shares in the last quarter. Private Trust Co. NA boosted its position in Ares Capital Corp. by 2.7% in the first quarter. Private Trust Co. NA now owns 31,074 shares of the investment management company’s stock worth $461,000 after buying an additional 829 shares in the last quarter. V Wealth Management LLC acquired a new position in Ares Capital Corp. during the first quarter worth $355,000. Finally, Duncker Streett & Co. Inc. boosted its position in Ares Capital Corp. by 4.8% in the first quarter. Duncker Streett & Co. Inc. now owns 82,380 shares of the investment management company’s stock worth $1,223,000 after buying an additional 3,808 shares in the last quarter. Institutional investors own 49.35% of the company’s stock.
Ares Capital Corp. Company Profile
Ares Capital Corporation is a specialty finance company that is 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. The Company invests primarily in the United States middle-market companies.
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