Zacks Investment Research Lowers Ares Capital Corporation (ARCC) to Sell
Zacks Investment Research downgraded shares of Ares Capital Corporation (NASDAQ:ARCC) from a hold rating to a sell rating in a report published on Monday morning.
According to Zacks, “ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. “
A number of other equities research analysts also recently commented on ARCC. CIBC started coverage on Ares Capital Corporation in a research report on Thursday, September 21st. They issued an outperform rating and a $18.00 target price on the stock. BMO Capital Markets reiterated a hold rating and issued a $15.00 target price on shares of Ares Capital Corporation in a research report on Friday, August 25th. Oppenheimer Holdings, Inc. assumed coverage on Ares Capital Corporation in a research report on Thursday, September 21st. They issued an outperform rating and a $18.00 target price on the stock. Citigroup Inc. assumed coverage on Ares Capital Corporation in a research report on Wednesday, September 20th. They set an outperform rating and a $18.00 price objective on the stock. Finally, BidaskClub downgraded Ares Capital Corporation from a hold rating to a sell rating in a research report on Wednesday, July 19th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and eight have assigned a buy rating to the stock. The stock presently has a consensus rating of Buy and an average price target of $18.06.
Shares of Ares Capital Corporation (NASDAQ:ARCC) opened at $16.39 on Monday. The company has a market capitalization of $6,901.78, a price-to-earnings ratio of 11.24, a P/E/G ratio of 3.91 and a beta of 0.63. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.66. Ares Capital Corporation has a 1 year low of $15.01 and a 1 year high of $17.87.
Ares Capital Corporation (NASDAQ:ARCC) last released its quarterly earnings results on Thursday, November 2nd. The investment management company reported $0.36 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.35 by $0.01. The business had revenue of $294.00 million during the quarter, compared to analyst estimates of $295.02 million. Ares Capital Corporation had a return on equity of 8.60% and a net margin of 45.78%. During the same quarter in the previous year, the company posted $0.43 earnings per share. equities analysts forecast that Ares Capital Corporation will post 1.38 EPS for the current year.
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The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 29th. Shareholders of record on Friday, December 15th will be paid a dividend of $0.38 per share. The ex-dividend date is Thursday, December 14th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 9.27%. Ares Capital Corporation’s payout ratio is currently 119.69%.
In other Ares Capital Corporation news, Director Michael J. Arougheti bought 8,365 shares of the company’s stock in a transaction dated Friday, November 3rd. The shares were purchased at an average cost of $15.85 per share, for a total transaction of $132,585.25. Following the transaction, the director now directly owns 937,054 shares of the company’s stock, valued at $14,852,305.90. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders have acquired a total of 8,965 shares of company stock valued at $142,283 in the last quarter. Company insiders own 0.45% of the company’s stock.
Hedge funds have recently bought and sold shares of the stock. Oppenheimer Asset Management Inc. boosted its holdings in shares of Ares Capital Corporation by 70.3% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 21,746 shares of the investment management company’s stock worth $356,000 after purchasing an additional 8,974 shares during the last quarter. Alpha Windward LLC raised its position in Ares Capital Corporation by 4,144.7% in the third quarter. Alpha Windward LLC now owns 29,925 shares of the investment management company’s stock valued at $490,000 after purchasing an additional 29,220 shares during the period. Summit X LLC increased its position in shares of Ares Capital Corporation by 61.8% during the third quarter. Summit X LLC now owns 19,270 shares of the investment management company’s stock worth $315,000 after acquiring an additional 7,360 shares during the period. Elliott Management Corp purchased a new stake in shares of Ares Capital Corporation during the second quarter worth $18,343,000. Finally, Intl Fcstone Inc. purchased a new stake in shares of Ares Capital Corporation during the second quarter worth $1,084,000. Institutional investors own 45.28% of the company’s stock.
About Ares Capital Corporation
Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.
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