Royal Bank Of Canada Issues Pessimistic Forecast for Ares Capital (NASDAQ:ARCC) Stock Price

Ares Capital (NASDAQ:ARCC) had its price objective cut by research analysts at Royal Bank Of Canada from $24.00 to $23.00 in a report issued on Wednesday, Marketbeat Ratings reports. The firm currently has an “outperform” rating on the investment management company’s stock. Royal Bank Of Canada’s price target indicates a potential upside of 14.14% from the stock’s previous close.

A number of other research firms have also commented on ARCC. Citigroup reissued an “outperform” rating on shares of Ares Capital in a report on Thursday, July 31st. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Ares Capital in a report on Wednesday, October 8th. Wells Fargo & Company lifted their price objective on Ares Capital from $22.00 to $23.00 and gave the stock an “overweight” rating in a report on Wednesday, July 30th. JPMorgan Chase & Co. cut their price objective on Ares Capital from $23.00 to $22.00 and set an “overweight” rating for the company in a report on Wednesday, October 1st. Finally, B. Riley raised Ares Capital from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $22.50 to $23.50 in a report on Wednesday, July 30th. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $22.25.

Ares Capital Stock Down 2.2%

Ares Capital stock opened at $20.15 on Wednesday. The firm has a market cap of $14.42 billion, a price-to-earnings ratio of 10.08 and a beta of 0.68. The stock has a fifty day simple moving average of $20.92 and a two-hundred day simple moving average of $21.54. Ares Capital has a 12 month low of $18.26 and a 12 month high of $23.84. The company has a current ratio of 2.20, a quick ratio of 1.14 and a debt-to-equity ratio of 1.09.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Tuesday, October 28th. The investment management company reported $0.50 EPS for the quarter, hitting analysts’ consensus estimates of $0.50. The business had revenue of $658.00 million during the quarter, compared to analyst estimates of $766.48 million. Ares Capital had a return on equity of 10.08% and a net margin of 45.16%.The company’s quarterly revenue was up .9% compared to the same quarter last year. During the same quarter last year, the company earned $0.58 EPS. Equities analysts predict that Ares Capital will post 2.19 EPS for the current fiscal year.

Institutional Trading of Ares Capital

Hedge funds have recently bought and sold shares of the stock. City Holding Co. grew its holdings in Ares Capital by 444.4% during the third quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock valued at $25,000 after purchasing an additional 1,000 shares during the period. Fourth Dimension Wealth LLC bought a new stake in Ares Capital during the second quarter valued at about $29,000. Elequin Capital LP bought a new stake in Ares Capital during the first quarter valued at about $30,000. NBT Bank N A NY purchased a new position in shares of Ares Capital in the third quarter valued at about $31,000. Finally, CNB Bank purchased a new position in shares of Ares Capital in the second quarter valued at about $36,000. 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.