Brokerages Set Ares Capital Corporation (NASDAQ:ARCC) Target Price at $22.00

Ares Capital Corporation (NASDAQ:ARCC) has received a consensus recommendation of “Moderate Buy” from the nine research firms that are presently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $22.00.

Several brokerages have recently weighed in on ARCC. B. Riley Financial reiterated a “buy” rating on shares of Ares Capital in a research note on Monday, February 9th. Wells Fargo & Company reduced their price objective on Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. Royal Bank Of Canada decreased their price objective on Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a research report on Monday, February 9th. Weiss Ratings reissued a “hold (c+)” rating on shares of Ares Capital in a report on Monday, December 29th. Finally, Wall Street Zen cut Ares Capital from a “hold” rating to a “sell” rating in a research note on Saturday, February 7th.

Ares Capital Trading Up 1.9%

NASDAQ:ARCC opened at $18.98 on Tuesday. The company has a market capitalization of $13.63 billion, a PE ratio of 10.20 and a beta of 0.59. Ares Capital has a 52-week low of $18.17 and a 52-week high of $23.63. The stock’s 50 day moving average price is $19.97 and its 200 day moving average price is $20.49. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.12.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, meeting the consensus estimate of $0.50. The business had revenue of $793.00 million during the quarter, compared to the consensus estimate of $795.20 million. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The company’s revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.55 earnings per share. On average, research analysts anticipate that Ares Capital will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 10.1%. The ex-dividend date is Friday, March 13th. Ares Capital’s dividend payout ratio (DPR) is 103.23%.

Insider Activity

In other Ares Capital news, CFO Scott C. Lem acquired 5,186 shares of the stock in a transaction on Friday, February 6th. The shares were bought at an average price of $19.29 per share, with a total value of $100,037.94. Following the acquisition, the chief financial officer owned 39,463 shares of the company’s stock, valued at $761,241.27. This trade represents a 15.13% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Michael Kort Schnabel bought 12,500 shares of the company’s stock in a transaction on Thursday, February 5th. The shares were acquired at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the transaction, the chief executive officer directly owned 40,500 shares in the company, valued at $774,765. This trade represents a 44.64% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. International Assets Investment Management LLC raised its stake in shares of Ares Capital by 33.9% in the 3rd quarter. International Assets Investment Management LLC now owns 275,891 shares of the investment management company’s stock valued at $5,557,000 after purchasing an additional 69,844 shares in the last quarter. Partners Group Holding AG increased its holdings in Ares Capital by 4.8% in the third quarter. Partners Group Holding AG now owns 1,767,154 shares of the investment management company’s stock valued at $36,068,000 after buying an additional 80,885 shares during the last quarter. Global Retirement Partners LLC raised its stake in Ares Capital by 265.3% during the third quarter. Global Retirement Partners LLC now owns 74,725 shares of the investment management company’s stock valued at $1,525,000 after buying an additional 54,267 shares in the last quarter. Vise Technologies Inc. bought a new position in Ares Capital during the 2nd quarter worth approximately $309,000. Finally, Newbridge Financial Services Group Inc. acquired a new position in shares of Ares Capital in the 2nd quarter worth approximately $2,810,000. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Company Profile

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.