Ares Capital Co. (NASDAQ:ARCC) Receives Average Rating of “Buy” from Analysts


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Ares Capital Co. (NASDAQ:ARCC) has earned a consensus recommendation of “Buy” from the fourteen research firms that are covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and nine have given a buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $16.13.

ARCC has been the subject of a number of research analyst reports. Janney Montgomery Scott upgraded Ares Capital from a “neutral” rating to a “buy” rating in a research note on Tuesday, October 27th. Barclays cut Ares Capital from an “overweight” rating to an “equal weight” rating and raised their target price for the company from $16.00 to $17.00 in a research note on Thursday, December 10th. Raymond James raised their target price on Ares Capital from $16.00 to $17.50 and gave the company an “outperform” rating in a research note on Friday, January 8th. BidaskClub upgraded Ares Capital from a “sell” rating to a “hold” rating in a research note on Wednesday, October 28th. Finally, JPMorgan Chase & Co. cut Ares Capital from an “overweight” rating to a “neutral” rating in a research note on Thursday, December 10th.

NASDAQ ARCC traded up $0.01 on Wednesday, hitting $16.94. The company’s stock had a trading volume of 1,641,413 shares, compared to its average volume of 1,685,369. Ares Capital has a 52-week low of $7.90 and a 52-week high of $19.33. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 1.08. The company’s 50-day simple moving average is $16.79 and its 200 day simple moving average is $14.98. The firm has a market cap of $7.16 billion, a P/E ratio of 22.57 and a beta of 1.20.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Sunday, November 1st. The investment management company reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.38 by $0.01. The business had revenue of $352.00 million during the quarter, compared to analysts’ expectations of $343.90 million. Ares Capital had a return on equity of 10.05% and a net margin of 21.28%. The business’s revenue was down 9.0% on a year-over-year basis. During the same quarter last year, the business posted $0.48 EPS. On average, research analysts forecast that Ares Capital will post 1.59 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, December 30th. Investors of record on Tuesday, December 15th were given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 9.45%. The ex-dividend date was Monday, December 14th. Ares Capital’s dividend payout ratio (DPR) is presently 84.66%.

In other Ares Capital news, VP Joshua M. Bloomstein bought 2,000 shares of Ares Capital stock in a transaction on Wednesday, October 28th. The stock was acquired at an average price of $13.82 per share, with a total value of $27,640.00. Following the acquisition, the vice president now owns 13,500 shares in the company, valued at $186,570. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Joshua M. Bloomstein bought 3,000 shares of Ares Capital stock in a transaction on Friday, October 30th. The stock was acquired at an average cost of $13.75 per share, with a total value of $41,250.00. Following the acquisition, the vice president now owns 13,500 shares in the company, valued at approximately $185,625. The disclosure for this purchase can be found here. In the last ninety days, insiders have purchased 90,000 shares of company stock valued at $1,256,590. 0.60% of the stock is owned by corporate insiders.

Several institutional investors have recently bought and sold shares of ARCC. EWG Elevate Inc. boosted its stake in shares of Ares Capital by 27.2% in the 4th quarter. EWG Elevate Inc. now owns 493,347 shares of the investment management company’s stock worth $8,333,000 after buying an additional 105,471 shares during the last quarter. DAVENPORT & Co LLC lifted its position in Ares Capital by 9.7% during the fourth quarter. DAVENPORT & Co LLC now owns 123,841 shares of the investment management company’s stock valued at $2,092,000 after purchasing an additional 10,937 shares in the last quarter. Sound Income Strategies LLC lifted its position in Ares Capital by 6.0% during the fourth quarter. Sound Income Strategies LLC now owns 1,699,228 shares of the investment management company’s stock valued at $28,700,000 after purchasing an additional 95,933 shares in the last quarter. HM Payson & Co. lifted its position in Ares Capital by 31.4% during the third quarter. HM Payson & Co. now owns 8,361 shares of the investment management company’s stock valued at $117,000 after purchasing an additional 2,000 shares in the last quarter. Finally, Wetherby Asset Management Inc. purchased a new position in Ares Capital during the third quarter valued at $185,000. 31.33% of the stock is owned by institutional investors and hedge funds.

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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Analyst Recommendations for Ares Capital (NASDAQ:ARCC)

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