Short Interest in Ares Capital Co. (NASDAQ:ARCC) Grows By 16.9%

Ares Capital Co. (NASDAQ:ARCCGet Rating) saw a large growth in short interest in the month of April. As of April 15th, there was short interest totalling 16,270,000 shares, a growth of 16.9% from the March 31st total of 13,920,000 shares. Based on an average daily trading volume, of 3,580,000 shares, the short-interest ratio is presently 4.5 days.

Ares Capital stock opened at $20.53 on Wednesday. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.91 and a quick ratio of 1.91. Ares Capital has a 1-year low of $18.23 and a 1-year high of $23.00. The firm has a market capitalization of $10.12 billion, a P/E ratio of 6.67 and a beta of 1.01. The company’s 50-day moving average is $21.08 and its 200 day moving average is $21.09.

Ares Capital (NASDAQ:ARCCGet Rating) last posted its quarterly earnings data on Tuesday, April 26th. The investment management company reported $0.42 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.47 by ($0.05). Ares Capital had a return on equity of 10.23% and a net margin of 75.13%. The firm had revenue of $440.00 million during the quarter, compared to analysts’ expectations of $486.12 million. During the same period last year, the company earned $0.43 earnings per share. The business’s revenue for the quarter was up 12.8% compared to the same quarter last year. Research analysts anticipate that Ares Capital will post 1.78 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 31st. Investors of record on Tuesday, March 15th were given a $0.42 dividend. This is a positive change from Ares Capital’s previous quarterly dividend of $0.41. This represents a $1.68 dividend on an annualized basis and a yield of 8.18%. The ex-dividend date of this dividend was Monday, March 14th. Ares Capital’s dividend payout ratio is 54.55%.

In other news, Director Mary Beth Henson bought 6,000 shares of the company’s stock in a transaction that occurred on Monday, March 14th. The stock was bought at an average price of $20.05 per share, with a total value of $120,300.00. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.58% of the company’s stock.

Institutional investors have recently bought and sold shares of the stock. Zullo Investment Group Inc. purchased a new stake in Ares Capital in the 4th quarter worth about $27,000. Atticus Wealth Management LLC grew its stake in Ares Capital by 88.1% in the 4th quarter. Atticus Wealth Management LLC now owns 1,482 shares of the investment management company’s stock worth $31,000 after acquiring an additional 694 shares in the last quarter. Financial Management Professionals Inc. grew its stake in Ares Capital by 70.7% in the 1st quarter. Financial Management Professionals Inc. now owns 1,775 shares of the investment management company’s stock worth $37,000 after acquiring an additional 735 shares in the last quarter. Sonora Investment Management LLC bought a new position in Ares Capital in the 3rd quarter worth about $41,000. Finally, Steph & Co. bought a new position in Ares Capital in the 4th quarter worth about $42,000. 29.44% of the stock is currently owned by institutional investors.

Several analysts have commented on ARCC shares. Hovde Group upgraded shares of Ares Capital from a “market perform” rating to an “outperform” rating in a research note on Wednesday, April 27th. JPMorgan Chase & Co. upgraded shares of Ares Capital from a “neutral” rating to an “overweight” rating and set a $22.00 price target on the stock in a research note on Wednesday, April 27th. Raymond James boosted their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock an “outperform” rating in a research note on Thursday, February 10th. Wells Fargo & Company upped their target price on shares of Ares Capital from $22.50 to $23.00 and gave the company an “overweight” rating in a research report on Monday, April 25th. Finally, StockNews.com cut shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Wednesday, April 27th. One research analyst has rated the stock with a sell rating, one has given a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $22.56.

About Ares Capital (Get Rating)

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

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