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

Ares Capital Co. (NASDAQ:ARCC) was the target of some unusual options trading on Thursday. Investors purchased 66,185 call options on the stock. This represents an increase of approximately 9,662% compared to the typical volume of 678 call options.

Shares of Ares Capital stock traded down $0.23 during midday trading on Friday, hitting $18.96. The company’s stock had a trading volume of 30,654 shares, compared to its average volume of 1,467,141. The firm has a market capitalization of $8.14 billion, a P/E ratio of 11.30 and a beta of 0.60. Ares Capital has a 1-year low of $14.50 and a 1-year high of $19.28. The company has a quick ratio of 2.10, a current ratio of 2.10 and a debt-to-equity ratio of 0.82. The stock has a 50-day simple moving average of $18.61 and a 200-day simple moving average of $17.89.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, July 30th. The investment management company reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.44 by $0.05. The company had revenue of $382.00 million during the quarter, compared to analysts’ expectations of $363.60 million. Ares Capital had a return on equity of 10.72% and a net margin of 53.81%. The business’s quarterly revenue was up 14.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.60 earnings per share. As a group, sell-side analysts predict that Ares Capital will post 1.86 earnings per share for the current year.



In other news, CFO Penelope F. Roll acquired 2,000 shares of Ares Capital stock in a transaction on Tuesday, August 6th. The stock was bought at an average price of $18.36 per share, for a total transaction of $36,720.00. Following the completion of the purchase, the chief financial officer now owns 11,147 shares in the company, valued at $204,658.92. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Daniel G. Kelly, Jr. acquired 6,000 shares of Ares Capital stock in a transaction on Thursday, August 1st. The stock was purchased at an average price of $18.44 per share, with a total value of $110,640.00. The disclosure for this purchase can be found here. Insiders bought a total of 13,625 shares of company stock valued at $250,889 in the last quarter. Company insiders own 0.53% of the company’s stock.

Several institutional investors have recently bought and sold shares of ARCC. Parallel Advisors LLC increased its stake in shares of Ares Capital by 656.9% in the first quarter. Parallel Advisors LLC now owns 1,582 shares of the investment management company’s stock worth $27,000 after purchasing an additional 1,373 shares during the period. Ropes Wealth Advisors LLC bought a new position in shares of Ares Capital in the second quarter worth about $27,000. Weaver Consulting Group bought a new position in shares of Ares Capital in the first quarter worth about $29,000. 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 during the period. Finally, Arcadia Investment Management Corp MI increased its stake in shares of Ares Capital by 109.9% in the second quarter. Arcadia Investment Management Corp MI now owns 1,889 shares of the investment management company’s stock worth $34,000 after purchasing an additional 989 shares during the period. Institutional investors and hedge funds own 36.41% of the company’s stock.

A number of analysts have commented on the company. BidaskClub downgraded Ares Capital from a “buy” rating to a “hold” rating in a research report on Wednesday, September 4th. BMO Capital Markets upgraded Ares Capital from a “market perform” rating to an “outperform” rating and increased their target price for the stock from $19.00 to $20.00 in a research report on Monday, August 19th. Raymond James upped their price target on Ares Capital from $19.00 to $19.50 and gave the stock an “outperform” rating in a research note on Wednesday, July 31st. Zacks Investment Research upgraded Ares Capital from a “hold” rating to a “buy” rating and set a $20.00 price target for the company in a research note on Monday, August 26th. Finally, Compass Point lowered Ares Capital from a “buy” rating to a “neutral” rating in a research note on Friday, August 23rd. Two analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. Ares Capital presently has an average rating of “Buy” and an average price target of $19.57.

Ares Capital Company Profile

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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