Ares Capital (NASDAQ:ARCC) Cut to “Sell” at Wall Street Zen

Wall Street Zen lowered shares of Ares Capital (NASDAQ:ARCC) from a hold rating to a sell rating in a research report report published on Sunday.

Other equities research analysts have also issued reports about the company. Citizens Jmp decreased their price target on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a research report on Wednesday, April 22nd. Oppenheimer cut their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research report on Wednesday, April 29th. Wells Fargo & Company reissued an “equal weight” rating and issued a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Truist Financial decreased their target price on Ares Capital from $22.00 to $21.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Finally, JPMorgan Chase & Co. lowered their target price on Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a research note on Thursday, July 2nd. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $20.40.

Ares Capital Price Performance

NASDAQ:ARCC opened at $19.65 on Friday. The firm has a market cap of $14.11 billion, a PE ratio of 14.56 and a beta of 0.56. Ares Capital has a 12 month low of $17.40 and a 12 month high of $22.76. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.14. The company’s 50-day moving average price is $18.70 and its two-hundred day moving average price is $18.88.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, hitting the consensus estimate of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The company had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. During the same quarter last year, the business posted $0.50 earnings per share. On average, equities analysts anticipate that Ares Capital will post 1.9 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.8%. Ares Capital’s dividend payout ratio (DPR) is currently 142.22%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ARCC. Palladiem LLC bought a new position in Ares Capital in the 4th quarter valued at $26,000. SWAN Capital LLC bought a new stake in shares of Ares Capital during the third quarter worth $27,000. Sankala Group LLC acquired a new position in shares of Ares Capital during the fourth quarter valued at $28,000. Core Wealth Advisors LLC acquired a new position in shares of Ares Capital during the fourth quarter valued at $33,000. Finally, Quarry LP bought a new position in Ares Capital in the third quarter valued at about $33,000. Institutional investors own 27.38% of the company’s stock.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.