Ares Capital Target of Unusually High Options Trading (NASDAQ:ARCC)

Ares Capital Corporation (NASDAQ:ARCC) was the recipient of unusually large options trading on Monday. Stock traders acquired 10,605 put options on the company. This is an increase of approximately 43% compared to the typical volume of 7,423 put options.

Ares Capital Stock Performance

Ares Capital stock traded up $0.21 during midday trading on Monday, hitting $17.66. 5,531,142 shares of the company’s stock were exchanged, compared to its average volume of 7,480,122. Ares Capital has a 12-month low of $17.40 and a 12-month high of $23.42. The firm’s 50 day simple moving average is $19.17 and its 200 day simple moving average is $19.95. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. The stock has a market cap of $12.68 billion, a price-to-earnings ratio of 9.50 and a beta of 0.59.

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

Ares Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 10.9%. The ex-dividend date is Friday, March 13th. Ares Capital’s payout ratio is presently 103.23%.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on ARCC shares. B. Riley Financial reaffirmed a “buy” rating on shares of Ares Capital in a research report on Monday, February 9th. JPMorgan Chase & Co. lowered their price target on Ares Capital from $22.00 to $19.00 and set an “overweight” rating on the stock in a research report on Friday, March 13th. Wall Street Zen downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Royal Bank Of Canada decreased their price objective on Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Monday, February 9th. Finally, Wells Fargo & Company lowered their target price on Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a report on Thursday, February 5th. Seven investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $21.38.

Insider Activity

In other news, CEO Michael Kort Schnabel purchased 12,500 shares of the company’s stock in a transaction that occurred on Thursday, February 5th. The stock was bought at an average cost of $19.13 per share, with a total value of $239,125.00. Following the completion of the purchase, the chief executive officer owned 40,500 shares in the company, valued at approximately $774,765. This represents a 44.64% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Scott C. Lem bought 5,186 shares of the company’s stock in a transaction dated Friday, February 6th. The stock was 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 in the company, valued at approximately $761,241.27. This trade represents a 15.13% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Ares Capital

Hedge funds have recently made changes to their positions in the stock. City Holding Co. boosted its position in shares of Ares Capital by 444.4% in the third quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock worth $25,000 after buying an additional 1,000 shares during the period. Palladiem LLC acquired a new stake in shares of Ares Capital during the fourth quarter worth approximately $26,000. SWAN Capital LLC bought a new stake in shares of Ares Capital in the 3rd quarter worth about $27,000. Sankala Group LLC acquired a new stake in Ares Capital during the fourth quarter valued at approximately $28,000. Finally, NBT Bank N A NY bought a new position in Ares Capital during the third quarter worth $31,000. 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.