Ares Capital (NASDAQ:ARCC) Upgraded by StockNews.com to Hold

Ares Capital (NASDAQ:ARCCGet Rating) was upgraded by equities researchers at StockNews.com from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday.

Several other brokerages also recently weighed in on ARCC. Hovde Group decreased their target price on shares of Ares Capital to $19.00 in a research note on Friday, May 20th. JPMorgan Chase & Co. upgraded shares of Ares Capital from a “neutral” rating to an “overweight” rating and set a $22.00 target price for the company in a research note on Wednesday, April 27th. Wells Fargo & Company upped their price target on shares of Ares Capital from $22.50 to $23.00 and gave the company an “overweight” rating in a report on Monday, April 25th. Finally, TheStreet cut shares of Ares Capital from a “b-” rating to a “c+” rating in a report on Monday, May 23rd. One equities research analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $22.00.

Shares of ARCC stock opened at $17.50 on Wednesday. Ares Capital has a one year low of $17.03 and a one year high of $23.00. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.91 and a current ratio of 1.91. The company has a 50 day moving average price of $19.55 and a 200 day moving average price of $20.59. The firm has a market capitalization of $8.62 billion, a price-to-earnings ratio of 5.68 and a beta of 1.01.

Ares Capital (NASDAQ:ARCCGet Rating) last released its quarterly earnings data on Tuesday, April 26th. The investment management company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.06). Ares Capital had a return on equity of 10.23% and a net margin of 75.13%. The business had revenue of $440.00 million for the quarter, compared to analysts’ expectations of $486.12 million. During the same quarter in the prior year, the firm earned $0.43 earnings per share. Ares Capital’s quarterly revenue was up 12.8% compared to the same quarter last year. As a group, equities analysts forecast that Ares Capital will post 1.77 EPS for the current fiscal year.

In related news, EVP Michael J. Arougheti bought 300,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 14th. The stock was purchased at an average price of $17.75 per share, for a total transaction of $5,325,000.00. Following the transaction, the executive vice president now directly owns 1,782,709 shares of the company’s stock, valued at approximately $31,643,084.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Michael Lewis Smith bought 54,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 19th. The stock was bought at an average price of $18.64 per share, with a total value of $1,006,560.00. Following the transaction, the insider now directly owns 89,000 shares in the company, valued at $1,658,960. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 356,775 shares of company stock worth $6,381,371. Corporate insiders own 0.59% of the company’s stock.

Several hedge funds have recently bought and sold shares of the stock. Atticus Wealth Management LLC lifted its stake in Ares Capital by 88.1% in the fourth quarter. Atticus Wealth Management LLC now owns 1,482 shares of the investment management company’s stock valued at $31,000 after acquiring an additional 694 shares during the last quarter. Financial Management Professionals Inc. lifted its stake in shares of Ares Capital by 70.7% in the first quarter. Financial Management Professionals Inc. now owns 1,775 shares of the investment management company’s stock worth $37,000 after buying an additional 735 shares during the last quarter. Steph & Co. acquired a new stake in shares of Ares Capital in the fourth quarter worth $42,000. Hardy Reed LLC acquired a new stake in shares of Ares Capital in the first quarter worth $42,000. Finally, Western Pacific Wealth Management LP acquired a new stake in shares of Ares Capital in the fourth quarter worth $47,000. Institutional investors and hedge funds own 29.44% of the company’s stock.

About Ares Capital (Get Rating)

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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