Ares Capital (NASDAQ:ARCC) Rating Lowered to Sell at StockNews.com

Ares Capital (NASDAQ:ARCC) was downgraded by research analysts at StockNews.com from a “hold” rating to a “sell” rating in a report released on Monday.

Other equities analysts have also issued reports about the stock. Royal Bank of Canada reissued an “outperform” rating and issued a $22.00 price objective on shares of Ares Capital in a research report on Monday, August 5th. Compass Point upgraded shares of Ares Capital to a “strong-buy” rating in a research report on Tuesday, July 30th. B. Riley upped their target price on Ares Capital from $21.00 to $22.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. JMP Securities lifted their price target on Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a report on Tuesday, July 30th. Finally, UBS Group upgraded Ares Capital to a “hold” rating in a research note on Friday, August 23rd. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $21.86.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $21.01 on Monday. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 1.06. The business’s 50 day moving average price is $21.00 and its two-hundred day moving average price is $20.96. The company has a market cap of $13.57 billion, a PE ratio of 8.08 and a beta of 1.01. Ares Capital has a twelve month low of $19.32 and a twelve month high of $22.05.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.01). Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The business had revenue of $755.00 million for the quarter, compared to analyst estimates of $770.45 million. During the same period in the previous year, the firm posted $0.59 earnings per share. The firm’s revenue was up 15.3% compared to the same quarter last year. On average, analysts predict that Ares Capital will post 2.36 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Jamison Private Wealth Management Inc. boosted its stake in shares of Ares Capital by 62.7% during the second quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock valued at $26,000 after purchasing an additional 475 shares in the last quarter. Capital Investment Advisors LLC boosted its position in Ares Capital by 1.6% during the 2nd quarter. Capital Investment Advisors LLC now owns 32,691 shares of the investment management company’s stock worth $681,000 after buying an additional 499 shares during the period. JBR Co Financial Management Inc grew its holdings in Ares Capital by 1.5% during the 3rd quarter. JBR Co Financial Management Inc now owns 33,047 shares of the investment management company’s stock worth $692,000 after acquiring an additional 500 shares during the last quarter. Onyx Bridge Wealth Group LLC increased its position in Ares Capital by 1.2% in the 3rd quarter. Onyx Bridge Wealth Group LLC now owns 43,609 shares of the investment management company’s stock valued at $913,000 after acquiring an additional 531 shares during the period. Finally, Centaurus Financial Inc. raised its stake in shares of Ares Capital by 3.9% during the second quarter. Centaurus Financial Inc. now owns 14,428 shares of the investment management company’s stock valued at $301,000 after acquiring an additional 542 shares during the last quarter. Institutional investors own 27.38% of the company’s stock.

About Ares Capital

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.