Ares Capital Co. (NASDAQ:ARCC) Sees Large Growth in Short Interest

Ares Capital Co. (NASDAQ:ARCC) saw a significant increase in short interest in the month of September. As of September 15th, there was short interest totalling 17,810,000 shares, an increase of 7.7% from the August 31st total of 16,540,000 shares. Based on an average trading volume of 3,290,000 shares, the short-interest ratio is presently 5.4 days.

Ares Capital Price Performance

Shares of ARCC opened at $20.74 on Wednesday. Ares Capital has a one year low of $18.55 and a one year high of $21.84. The stock’s fifty day moving average is $20.70 and its 200-day moving average is $20.79. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.40 and a current ratio of 1.40. The firm has a market capitalization of $12.75 billion, a price-to-earnings ratio of 7.10 and a beta of 1.01.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Tuesday, July 30th. The investment management company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.58 by $0.03. Ares Capital had a net margin of 59.76% and a return on equity of 12.24%. The firm had revenue of $755.00 million for the quarter, compared to analysts’ expectations of $714.27 million. During the same quarter last year, the company earned $0.58 EPS. Equities analysts anticipate that Ares Capital will post 2.39 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 30th. Investors of record on Friday, September 13th were paid a dividend of $0.48 per share. The ex-dividend date of this dividend was Friday, September 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.26%. Ares Capital’s dividend payout ratio is presently 65.75%.

Analyst Ratings Changes

A number of brokerages have recently weighed in on ARCC. Compass Point upgraded Ares Capital to a “strong-buy” rating in a research report on Tuesday, July 30th. JMP Securities increased their target price on Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a research report on Tuesday, July 30th. Royal Bank of Canada restated an “outperform” rating and set a $22.00 price target on shares of Ares Capital in a research report on Monday, August 5th. Finally, UBS Group upgraded shares of Ares Capital to a “hold” rating in a research report on Friday, August 23rd. Four analysts have rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, Ares Capital has a consensus rating of “Moderate Buy” and a consensus price target of $21.71.

Institutional Investors Weigh In On Ares Capital

A number of institutional investors have recently added to or reduced their stakes in the company. Jamison Private Wealth Management Inc. increased its position in shares of Ares Capital by 62.7% during the 2nd quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock valued at $26,000 after purchasing an additional 475 shares during the period. Asset Dedication LLC bought a new stake in Ares Capital in the second quarter worth about $26,000. Valley National Advisers Inc. lifted its holdings in Ares Capital by 323.3% in the 1st quarter. Valley National Advisers Inc. now owns 1,435 shares of the investment management company’s stock valued at $29,000 after acquiring an additional 1,096 shares during the last quarter. Hobbs Group Advisors LLC bought a new position in shares of Ares Capital during the 2nd quarter valued at about $32,000. Finally, nVerses Capital LLC grew its stake in shares of Ares Capital by 88.9% in the 2nd quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company’s stock worth $35,000 after purchasing an additional 800 shares during the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.

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.