Zacks Investment Research upgraded shares of Ares Capital (NASDAQ:ARCC) from a sell rating to a hold rating in a research note issued to investors on Monday morning.
According to Zacks, “ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. “
ARCC has been the subject of a number of other research reports. Keefe, Bruyette & Woods set a $19.00 price objective on shares of Ares Capital and gave the company a buy rating in a report on Friday, October 6th. TheStreet lowered shares of Ares Capital from a b rating to a c+ rating in a report on Monday, November 13th. BidaskClub lowered shares of Ares Capital from a sell rating to a strong sell rating in a report on Tuesday, December 5th. Jefferies Group reiterated a buy rating and set a $19.50 price objective on shares of Ares Capital in a report on Friday, November 3rd. Finally, Compass Point initiated coverage on shares of Ares Capital in a report on Wednesday, December 6th. They set a buy rating and a $17.50 price objective for the company. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and eight have given a buy rating to the company. Ares Capital presently has an average rating of Buy and an average target price of $18.00.
Ares Capital (NASDAQ:ARCC) last released its earnings results on Thursday, November 2nd. The investment management company reported $0.36 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.35 by $0.01. The firm had revenue of $294.00 million during the quarter, compared to analyst estimates of $295.02 million. Ares Capital had a net margin of 45.78% and a return on equity of 8.60%. During the same quarter last year, the business earned $0.43 EPS. equities analysts forecast that Ares Capital will post 1.38 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, December 29th. Shareholders of record on Friday, December 15th were given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 9.48%. The ex-dividend date of this dividend was Thursday, December 14th. Ares Capital’s dividend payout ratio (DPR) is 120.63%.
In other Ares Capital news, Director Michael J. Arougheti bought 8,365 shares of the business’s stock in a transaction on Friday, November 3rd. The shares were acquired at an average price of $15.85 per share, with a total value of $132,585.25. Following the transaction, the director now owns 937,054 shares of the company’s stock, valued at approximately $14,852,305.90. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders have acquired a total of 8,965 shares of company stock worth $142,315 in the last three months. Insiders own 0.45% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the business. IHT Wealth Management LLC increased its position in Ares Capital by 33.5% during the 2nd quarter. IHT Wealth Management LLC now owns 4,568 shares of the investment management company’s stock valued at $196,000 after purchasing an additional 1,147 shares during the period. Legacy Advisors LLC purchased a new position in Ares Capital during the 3rd quarter valued at about $128,000. Joel Isaacson & Co. LLC purchased a new position in Ares Capital during the 3rd quarter valued at about $164,000. Sumitomo Mitsui Trust Holdings Inc. purchased a new position in shares of Ares Capital in the 3rd quarter worth approximately $167,000. Finally, Harvest Capital Management Inc purchased a new position in shares of Ares Capital in the 4th quarter worth approximately $162,000. 43.60% of the stock is currently owned by institutional investors and hedge funds.
About Ares Capital
Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Ares Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ares Capital and related companies with MarketBeat.com's FREE daily email newsletter.