Ares Capital (NASDAQ:ARCC) Now Covered by UBS Group

Investment analysts at UBS Group began coverage on shares of Ares Capital (NASDAQ:ARCC) in a research report issued on Thursday, Zacks reports. The brokerage set a “strong-buy” rating on the investment management company’s stock.

ARCC has been the subject of several other reports. JPMorgan Chase & Co. dropped their price objective on Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a research report on Thursday, July 2nd. Truist Financial reduced their price target on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Citigroup reiterated a “market outperform” rating on shares of Ares Capital in a research report on Wednesday. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a research report on Friday, September 4th. Finally, Keefe, Bruyette & Woods cut their target price on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Ares Capital currently has an average rating of “Moderate Buy” and a consensus target price of $20.39.

Ares Capital Stock Up 3.2%

Shares of ARCC opened at $19.12 on Thursday. The firm has a 50 day simple moving average of $19.24 and a two-hundred day simple moving average of $19.04. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.00 and a quick ratio of 1.28. Ares Capital has a one year low of $17.40 and a one year high of $21.14. The company has a market cap of $13.81 billion, a P/E ratio of 15.67 and a beta of 0.61.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Tuesday, October 27th. The investment management company reported $0.46 earnings per share for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.02). Ares Capital had a net margin of 28.34% and a return on equity of 9.72%. The business had revenue of $763.00 million during the quarter, compared to analyst estimates of $776.34 million. During the same period in the prior year, the business posted $0.50 EPS. The company’s revenue for the quarter was down 2.4% compared to the same quarter last year. Research analysts forecast that Ares Capital will post 1.89 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ARCC. Strs Ohio acquired a new position in shares of Ares Capital in the first quarter worth approximately $189,210,000. Bank of America Corp DE bought a new stake in Ares Capital in the second quarter valued at approximately $165,569,000. Legal & General Group Plc acquired a new stake in Ares Capital during the 2nd quarter valued at approximately $120,538,000. Advisors Capital Management LLC acquired a new stake in Ares Capital during the 2nd quarter valued at approximately $63,140,000. Finally, OMERS ADMINISTRATION Corp acquired a new stake in Ares Capital during the 2nd quarter valued at approximately $53,867,000. 27.38% of the stock is owned by institutional investors and hedge funds.

Ares Capital Company Profile

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.