Ares Capital (NASDAQ:ARCC) Rating Increased to Hold at Wall Street Zen

Ares Capital (NASDAQ:ARCC) was upgraded by investment analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research report issued on Saturday.

A number of other research firms also recently commented on ARCC. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a research note on Tuesday, June 9th. Royal Bank Of Canada dropped their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Truist Financial reduced their price target on Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. Keefe, Bruyette & Woods decreased their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Thursday, April 16th. Finally, Oppenheimer lowered their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Ares Capital currently has an average rating of “Moderate Buy” and an average price target of $20.60.

Ares Capital Price Performance

NASDAQ ARCC opened at $18.78 on Friday. The firm’s 50 day moving average is $18.66 and its 200-day moving average is $18.97. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13. The company has a market capitalization of $13.48 billion, a PE ratio of 11.52 and a beta of 0.56. Ares Capital has a 12-month low of $17.40 and a 12-month high of $23.15.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.01). Ares Capital had a return on equity of 9.85% and a net margin of 37.30%.The business had revenue of $763.00 million for the quarter, compared to analyst estimates of $778.00 million. During the same quarter in the previous year, the company posted $0.50 EPS. The business’s revenue for the quarter was up 4.2% compared to the same quarter last year. Equities research analysts anticipate that Ares Capital will post 1.9 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Roman Butler Fullerton & Co. increased its holdings in shares of Ares Capital by 1.9% in the first quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company’s stock valued at $504,000 after purchasing an additional 528 shares during the last quarter. First Citizens Bank & Trust Co. lifted its stake in shares of Ares Capital by 5.3% during the 4th quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock worth $213,000 after buying an additional 532 shares during the last quarter. Perigon Wealth Management LLC lifted its stake in shares of Ares Capital by 1.6% during the 4th quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock worth $702,000 after buying an additional 547 shares during the last quarter. Diversify Advisory Services LLC boosted its holdings in shares of Ares Capital by 2.0% during the 4th quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company’s stock worth $589,000 after buying an additional 563 shares during the period. Finally, CWS Financial Advisors LLC boosted its holdings in shares of Ares Capital by 4.0% during the 1st quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company’s stock worth $270,000 after buying an additional 582 shares during the period. 27.38% of the stock is owned by institutional investors and hedge funds.

Ares Capital Company Profile

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.