Ares Capital (NASDAQ:ARCC) Stock Rating Lowered by Wall Street Zen

Ares Capital (NASDAQ:ARCC) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report released on Sunday.

ARCC has been the topic of several other research reports. Citizens Jmp decreased their target price on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 22nd. Keefe, Bruyette & Woods dropped their target price on Ares Capital from $21.00 to $20.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. B. Riley Financial cut their price target on shares of Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Royal Bank Of Canada reduced their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. Finally, Truist Financial lowered their price objective on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $20.40.

Ares Capital Stock Up 2.2%

Shares of NASDAQ ARCC opened at $19.17 on Friday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.14. The business’s 50 day moving average is $18.69 and its two-hundred day moving average is $18.88. Ares Capital has a 52-week low of $17.40 and a 52-week high of $22.76. The firm has a market cap of $13.76 billion, a price-to-earnings ratio of 14.20 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, hitting the consensus estimate of $0.47. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.The business had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. During the same period last year, the business posted $0.50 earnings per share. Research analysts predict that Ares Capital will post 1.9 EPS for the current year.

Institutional Investors Weigh In On Ares Capital

Several large investors have recently bought and sold shares of the stock. Palladiem LLC purchased a new position in shares of Ares Capital in the 4th quarter valued at about $26,000. SWAN Capital LLC acquired a new stake in Ares Capital in the third quarter valued at approximately $27,000. Sankala Group LLC acquired a new stake in Ares Capital in the fourth quarter valued at approximately $28,000. Core Wealth Advisors LLC purchased a new position in Ares Capital in the fourth quarter worth approximately $33,000. Finally, Quarry LP purchased a new position in Ares Capital in the third quarter worth approximately $33,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

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.