Investors Purchase High Volume of Put Options on Ares Capital (ARCC)
Ares Capital Co. (NASDAQ:ARCC) was the target of some unusual options trading on Thursday. Stock traders bought 8,843 put options on the company. This is an increase of approximately 1,517% compared to the typical volume of 547 put options.
A number of research analysts have commented on the company. BidaskClub raised Ares Capital from a “sell” rating to a “hold” rating in a research report on Friday, September 7th. Citigroup assumed coverage on Ares Capital in a research report on Thursday, August 23rd. They set a “buy” rating and a $19.00 price target for the company. Zacks Investment Research raised Ares Capital from a “hold” rating to a “buy” rating and set a $19.00 price target for the company in a research report on Monday. Oppenheimer set a $18.00 price target on Ares Capital and gave the company a “buy” rating in a research report on Thursday, November 1st. Finally, National Securities reissued a “buy” rating and issued a $19.00 target price on shares of Ares Capital in a research report on Thursday, November 1st. Two equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Ares Capital has an average rating of “Buy” and an average target price of $18.42.
Shares of NASDAQ:ARCC opened at $16.71 on Friday. Ares Capital has a 52-week low of $15.03 and a 52-week high of $17.63. The company has a market capitalization of $7.21 billion, a PE ratio of 10.51, a PEG ratio of 3.46 and a beta of 0.58. The company has a debt-to-equity ratio of 0.62, a current ratio of 2.41 and a quick ratio of 2.41.
The company also recently announced a quarterly dividend, which will be paid on Friday, December 28th. Stockholders of record on Friday, December 14th will be given a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 9.34%. The ex-dividend date is Thursday, December 13th. Ares Capital’s dividend payout ratio is currently 112.23%.
In other Ares Capital news, Director Eric B. Siegel purchased 6,990 shares of the stock in a transaction on Wednesday, September 12th. The stock was acquired at an average price of $17.30 per share, with a total value of $120,927.00. Following the transaction, the director now directly owns 36,630 shares of the company’s stock, valued at approximately $633,699. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Penelope F. Roll sold 6,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 20th. The shares were sold at an average price of $16.76, for a total value of $100,560.00. Following the transaction, the chief financial officer now directly owns 11,147 shares of the company’s stock, valued at approximately $186,823.72. The disclosure for this sale can be found here. Insiders have acquired a total of 7,590 shares of company stock valued at $131,039 in the last ninety days. 0.49% of the stock is currently owned by corporate insiders.
Large investors have recently made changes to their positions in the company. Baker Ellis Asset Management LLC bought a new position in Ares Capital during the 3rd quarter valued at approximately $138,000. Rehmann Capital Advisory Group increased its position in Ares Capital by 43.5% during the 2nd quarter. Rehmann Capital Advisory Group now owns 9,658 shares of the investment management company’s stock valued at $159,000 after buying an additional 2,930 shares in the last quarter. grace capital bought a new position in Ares Capital during the 2nd quarter valued at approximately $165,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in Ares Capital during the 2nd quarter valued at approximately $174,000. Finally, McKinley Carter Wealth Services Inc. bought a new position in Ares Capital during the 3rd quarter valued at approximately $175,000. 39.45% of the stock is owned by hedge funds and other institutional investors.
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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