Brokerages Set Ares Capital Corporation (NASDAQ:ARCC) Target Price at $21.38

Shares of Ares Capital Corporation (NASDAQ:ARCC) have received an average rating of “Moderate Buy” from the nine analysts that are covering the company, MarketBeat.com reports. Two equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $21.25.

Several equities research analysts recently commented on ARCC shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a research report on Monday, December 29th. Wall Street Zen cut shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Wells Fargo & Company cut their price objective on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a research report on Thursday, February 5th. Royal Bank Of Canada cut their price objective on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a research report on Monday, February 9th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Ares Capital from $22.00 to $19.00 and set an “overweight” rating on the stock in a research report on Friday, March 13th.

Ares Capital Trading Down 0.8%

ARCC opened at $18.96 on Wednesday. The stock has a market capitalization of $13.61 billion, a P/E ratio of 10.19 and a beta of 0.58. Ares Capital has a 12 month low of $17.40 and a 12 month high of $23.42. The firm’s fifty day simple moving average is $18.59 and its 200 day simple moving average is $19.64. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.12.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 EPS for the quarter, meeting the consensus estimate of $0.50. The business had revenue of $793.00 million for the quarter, compared to analysts’ expectations of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The firm’s revenue was up 4.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.55 EPS. As a group, research analysts anticipate that Ares Capital will post 1.93 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th were given a dividend of $0.48 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $1.92 annualized dividend and a yield of 10.1%. Ares Capital’s payout ratio is 103.23%.

Insider Activity

In other Ares Capital news, CEO Michael Kort Schnabel purchased 12,500 shares of the business’s stock in a transaction on Thursday, February 5th. The shares were purchased at an average cost of $19.13 per share, with a total value of $239,125.00. Following the transaction, the chief executive officer directly owned 40,500 shares of the company’s stock, valued at $774,765. This represents a 44.64% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Scott C. Lem purchased 5,186 shares of the business’s stock in a transaction on Friday, February 6th. The shares were acquired at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the transaction, the chief financial officer directly owned 39,463 shares in the company, valued at approximately $761,241.27. This represents a 15.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Ares Capital

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. City Holding Co. lifted its position in Ares Capital by 444.4% during the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock worth $25,000 after buying an additional 1,000 shares in the last quarter. Palladiem LLC bought a new stake in Ares Capital during the 4th quarter worth about $26,000. SWAN Capital LLC bought a new stake in Ares Capital during the 3rd quarter worth about $27,000. Sankala Group LLC bought a new stake in Ares Capital during the 4th quarter worth about $28,000. Finally, NBT Bank N A NY bought a new stake in Ares Capital during the 3rd quarter worth about $31,000. 27.38% of the stock is owned by institutional investors.

About Ares Capital

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.