Ares Capital Co. (NASDAQ:ARCC) Receives Average Recommendation of “Buy” from Brokerages

Shares of Ares Capital Co. (NASDAQ:ARCC) have been given an average recommendation of “Buy” by the nine analysts that are currently covering the firm, MarketBeat reports. Two analysts have rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $19.50.

Several brokerages recently issued reports on ARCC. BMO Capital Markets upgraded shares of Ares Capital from a “market perform” rating to an “outperform” rating and boosted their price target for the company from $19.00 to $20.00 in a research report on Monday, August 19th. Compass Point cut shares of Ares Capital from a “buy” rating to a “neutral” rating in a research report on Friday. Wedbush set a $20.00 price target on shares of Ares Capital and gave the company a “buy” rating in a research report on Tuesday, May 14th. National Securities reiterated a “buy” rating and set a $20.00 price target on shares of Ares Capital in a research report on Wednesday, May 1st. Finally, Raymond James boosted their price target on shares of Ares Capital from $19.00 to $19.50 and gave the company an “outperform” rating in a research report on Wednesday, July 31st.

Shares of NASDAQ ARCC traded down $0.32 during midday trading on Friday, hitting $18.57. 1,796,860 shares of the company traded hands, compared to its average volume of 1,836,585. Ares Capital has a 12-month low of $14.50 and a 12-month high of $19.02. The company has a debt-to-equity ratio of 0.82, a quick ratio of 2.10 and a current ratio of 2.10. The stock has a 50-day moving average price of $18.36 and a 200 day moving average price of $17.71. The firm has a market cap of $8.06 billion, a P/E ratio of 11.05 and a beta of 0.61.



Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, July 30th. The investment management company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.05. Ares Capital had a net margin of 53.81% and a return on equity of 10.72%. The company had revenue of $382.00 million for the quarter, compared to analysts’ expectations of $363.60 million. During the same quarter in the previous year, the company earned $0.60 earnings per share. Ares Capital’s quarterly revenue was up 14.7% on a year-over-year basis. As a group, equities analysts expect that Ares Capital will post 1.85 earnings per share for the current year.

In other Ares Capital news, Director Daniel G. Kelly, Jr. acquired 6,000 shares of the business’s stock in a transaction on Thursday, August 1st. The shares were acquired at an average price of $18.44 per share, for a total transaction of $110,640.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Penelope F. Roll acquired 2,000 shares of the business’s stock in a transaction on Tuesday, August 6th. The stock was acquired at an average price of $18.36 per share, for a total transaction of $36,720.00. Following the acquisition, the chief financial officer now owns 11,147 shares of the company’s stock, valued at approximately $204,658.92. The disclosure for this purchase can be found here. In the last 90 days, insiders acquired 18,125 shares of company stock worth $331,934. Corporate insiders own 0.53% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Stephens Inc. AR lifted its position in Ares Capital by 0.4% during the first quarter. Stephens Inc. AR now owns 161,135 shares of the investment management company’s stock valued at $2,762,000 after purchasing an additional 565 shares during the period. Nordea Investment Management AB increased its stake in shares of Ares Capital by 50.9% in the first quarter. Nordea Investment Management AB now owns 1,684 shares of the investment management company’s stock worth $29,000 after purchasing an additional 568 shares in the last quarter. MBM Wealth Consultants LLC increased its stake in shares of Ares Capital by 2.0% in the second quarter. MBM Wealth Consultants LLC now owns 32,806 shares of the investment management company’s stock worth $590,000 after purchasing an additional 632 shares in the last quarter. Wambolt & Associates LLC increased its stake in shares of Ares Capital by 0.8% in the second quarter. Wambolt & Associates LLC now owns 84,062 shares of the investment management company’s stock worth $1,508,000 after purchasing an additional 693 shares in the last quarter. Finally, SeaCrest Wealth Management LLC increased its stake in shares of Ares Capital by 6.4% in the second quarter. SeaCrest Wealth Management LLC now owns 12,844 shares of the investment management company’s stock worth $230,000 after purchasing an additional 774 shares in the last quarter. Institutional investors and hedge funds own 36.94% of the company’s stock.

About Ares Capital

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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Analyst Recommendations for Ares Capital (NASDAQ:ARCC)

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