Ares Capital Corporation (NASDAQ:ARCC) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Ares Capital Corporation (NASDAQ:ARCC) have been assigned an average rating of “Moderate Buy” from the nine brokerages that are covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $21.3750.

ARCC has been the subject of several recent research reports. JPMorgan Chase & Co. cut their price target on Ares Capital from $22.00 to $19.00 and set an “overweight” rating for the company in a research note on Friday, March 13th. Royal Bank Of Canada dropped their price objective on Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a report on Monday, February 9th. Wells Fargo & Company reduced their target price on Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a report on Thursday, February 5th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a research note on Monday, December 29th. Finally, Wall Street Zen cut shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th.

Ares Capital Trading Down 1.3%

Shares of Ares Capital stock opened at $17.96 on Friday. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. The firm has a 50-day moving average of $19.45 and a 200-day moving average of $20.13. Ares Capital has a 52-week low of $17.59 and a 52-week high of $23.42. The stock has a market cap of $12.90 billion, a PE ratio of 9.66 and a beta of 0.59.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, hitting the consensus estimate of $0.50. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The business had revenue of $793.00 million during the quarter, compared to analysts’ expectations of $795.20 million. During the same quarter in the previous year, the company earned $0.55 EPS. The business’s revenue was up 4.5% on a year-over-year basis. As a group, sell-side analysts forecast that Ares Capital will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be given a $0.48 dividend. The ex-dividend date is Friday, March 13th. This represents a $1.92 annualized dividend and a dividend yield of 10.7%. Ares Capital’s payout ratio is presently 103.23%.

Insider Buying and Selling

In other news, CEO Michael Kort Schnabel acquired 12,500 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The shares were acquired at an average cost of $19.13 per share, with a total value of $239,125.00. Following the completion of the purchase, the chief executive officer directly owned 40,500 shares of the company’s stock, valued at $774,765. The trade was a 44.64% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Scott C. Lem acquired 5,186 shares of the stock in a transaction on Friday, February 6th. The shares were purchased at an average price of $19.29 per share, with a total value of $100,037.94. Following the completion of the transaction, the chief financial officer owned 39,463 shares of the company’s stock, valued at approximately $761,241.27. This represents a 15.13% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Ares Capital

A number of large investors have recently modified their holdings of the business. Partners Group Holding AG grew its holdings in shares of Ares Capital by 4.8% during the 3rd quarter. Partners Group Holding AG now owns 1,767,154 shares of the investment management company’s stock valued at $36,068,000 after purchasing an additional 80,885 shares during the last quarter. International Assets Investment Management LLC lifted its stake in Ares Capital by 33.9% in the 3rd quarter. International Assets Investment Management LLC now owns 275,891 shares of the investment management company’s stock valued at $5,557,000 after purchasing an additional 69,844 shares during the last quarter. Prevail Innovative Wealth Advisors LLC bought a new position in Ares Capital in the 3rd quarter valued at approximately $1,430,000. Global Retirement Partners LLC boosted its position in Ares Capital by 265.3% in the third quarter. Global Retirement Partners LLC now owns 74,725 shares of the investment management company’s stock valued at $1,525,000 after buying an additional 54,267 shares in the last quarter. Finally, Rathbones Group PLC boosted its position in Ares Capital by 27.2% in the third quarter. Rathbones Group PLC now owns 438,807 shares of the investment management company’s stock valued at $8,956,000 after buying an additional 93,800 shares in the last quarter. Institutional investors and hedge funds own 27.38% of the company’s stock.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.