Investors Purchase High Volume of Put Options on Ares Capital (NASDAQ:ARCC)

Ares Capital Co. (NASDAQ:ARCCGet Rating) was the target of some unusual options trading activity on Friday. Investors acquired 30,183 put options on the company. This represents an increase of 367% compared to the typical daily volume of 6,460 put options.

Analysts Set New Price Targets

ARCC has been the subject of a number of research reports. StockNews.com raised Ares Capital from a “sell” rating to a “hold” rating in a research note on Thursday, July 28th. JMP Securities lowered their target price on Ares Capital from $24.00 to $22.00 and set a “market outperform” rating for the company in a research note on Thursday, July 28th. Finally, Oppenheimer lowered their target price on Ares Capital to $21.00 and set an “outperform” rating for the company in a research note on Wednesday, July 27th. One equities research analyst has rated the stock with a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $21.88.

Ares Capital Stock Down 1.9 %

Shares of NASDAQ:ARCC traded down $0.34 during midday trading on Friday, hitting $17.50. The stock had a trading volume of 108,775 shares, compared to its average volume of 2,305,621. Ares Capital has a 12 month low of $17.03 and a 12 month high of $23.00. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.26. The business’s 50-day simple moving average is $19.68 and its 200-day simple moving average is $19.75. The company has a market cap of $8.68 billion, a P/E ratio of 8.07 and a beta of 0.97.

Ares Capital (NASDAQ:ARCCGet Rating) last released its earnings results on Tuesday, July 26th. The investment management company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.09. Ares Capital had a net margin of 54.92% and a return on equity of 10.15%. The business had revenue of $479.00 million during the quarter, compared to analysts’ expectations of $466.21 million. During the same period last year, the business earned $0.53 earnings per share. On average, sell-side analysts forecast that Ares Capital will post 1.93 earnings per share for the current fiscal year.

Insider Activity at Ares Capital

In other news, CFO Penelope F. Roll purchased 2,500 shares of the business’s stock in a transaction that occurred on Wednesday, September 14th. The shares were acquired at an average cost of $19.04 per share, for a total transaction of $47,600.00. Following the transaction, the chief financial officer now directly owns 54,500 shares of the company’s stock, valued at approximately $1,037,680. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In other news, CFO Penelope F. Roll purchased 2,500 shares of the business’s stock in a transaction that occurred on Wednesday, September 14th. The shares were acquired at an average cost of $19.04 per share, for a total transaction of $47,600.00. Following the transaction, the chief financial officer now directly owns 54,500 shares of the company’s stock, valued at approximately $1,037,680. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Penelope F. Roll purchased 25,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 3rd. The stock was purchased at an average price of $19.77 per share, for a total transaction of $494,250.00. Following the completion of the transaction, the chief financial officer now directly owns 52,000 shares in the company, valued at $1,028,040. The disclosure for this purchase can be found here. 0.59% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Ares Capital

Several hedge funds have recently added to or reduced their stakes in ARCC. Enstar Group LTD lifted its holdings in Ares Capital by 5,266.8% during the 1st quarter. Enstar Group LTD now owns 3,129,652 shares of the investment management company’s stock valued at $65,566,000 after purchasing an additional 3,071,337 shares during the last quarter. Border to Coast Pensions Partnership Ltd acquired a new stake in Ares Capital during the 1st quarter valued at $36,527,000. Van ECK Associates Corp lifted its holdings in shares of Ares Capital by 39.1% during the second quarter. Van ECK Associates Corp now owns 5,993,981 shares of the investment management company’s stock worth $107,473,000 after buying an additional 1,683,882 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Ares Capital by 160.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,117,111 shares of the investment management company’s stock worth $23,403,000 after buying an additional 687,496 shares in the last quarter. Finally, Ares Management LLC lifted its holdings in shares of Ares Capital by 35.7% during the first quarter. Ares Management LLC now owns 2,361,573 shares of the investment management company’s stock worth $49,475,000 after buying an additional 621,814 shares in the last quarter. Institutional investors and hedge funds own 33.79% of the company’s stock.

Ares Capital Company Profile

(Get Rating)

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.

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