Ares Capital (NASDAQ:ARCC) Rating Upgraded to Hold on StockNews.com
Ares Capital (NASDAQ:ARCC – Get a rating) was upgraded by StockNews.com equity researchers from a “sell” rating to a “hold” rating in a report released Wednesday.
ARCC has been the subject of several other research reports. JPMorgan Chase & Co. upgraded Ares Capital from a “neutral” rating to an “overweight” rating and set a price target of $22.00 on the stock in a Wednesday, April 27 report. Wells Fargo & Company raised its price target on Ares Capital from $22.50 to $23.00 and gave the company an “overweight” rating in a Monday, April 25 report. Hovde Group reduced its price target on Ares Capital to $19.00 in a Friday, May 20 report. Finally, TheStreet downgraded Ares Capital from a “b-” rating to a “c+” rating in a Monday, May 23 report. One investment analyst gave the stock a hold rating and seven gave the stock a buy rating. According to data from MarketBeat.com, Ares Capital has an average rating of “Moderate Buy” and a consensus price target of $22.00.
ARCC shares were down $0.02 during trading hours on Wednesday, hitting $17.55. The company had a trading volume of 2,879,788 shares, compared to an average volume of 3,921,573 shares. The company has a market capitalization of $8.65 billion, a P/E ratio of 5.70 and a beta of 1.01. The stock’s 50-day moving average price is $19.64 and its 200-day moving average price is $20.61. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt ratio of 1.13. Ares Capital has a 52-week low of $17.03 and a 52-week high of $23.00.
Ares Capital (NASDAQ:ARCC – Get Rating) last released its quarterly earnings data on Tuesday, April 26. The investment management firm reported EPS of $0.41 for the quarter, missing the consensus estimate of $0.47 per ($0.06). The company posted revenue of $440.00 million in the quarter, compared to $486.12 million expected by analysts. Ares Capital had a return on equity of 10.23% and a net margin of 75.13%. The company’s quarterly revenue increased 12.8% year over year. In the same quarter a year earlier, the company posted EPS of $0.43. On average, research analysts expect Ares Capital to post EPS of 1.77 for the current financial year.
In other news, Executive Vice President Michael J. Arougheti acquired 300,000 shares of the company in a transaction on Tuesday, June 14. The shares were acquired at an average cost of $17.75 per share, with a total value of $5,325,000.00. Following the transaction, the executive vice president now owns 1,782,709 shares of the company, valued at approximately $31,643,084.75. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Additionally, director Steven B. Mckeever acquired 2,775 shares of the company in a transaction on Wednesday, June 15. The shares were purchased at an average cost of $17.95 per share, for a total transaction of $49,811.25. Following completion of the transaction, the administrator now owns 44,944 shares of the company, valued at approximately $806,744.80. Disclosure of this purchase can be found here. Over the past ninety days, insiders have purchased 356,775 shares of the company worth $6,381,371. Insiders own 0.59% of the shares of the company.
Several institutional investors and hedge funds have recently changed their stake in ARCC. Atticus Wealth Management LLC increased its position in Ares Capital by 88.1% in the 4th quarter. Atticus Wealth Management LLC now owns 1,482 shares of the investment management company valued at $31,000 after acquiring an additional 694 shares last quarter. Financial Management Professionals Inc. increased its position in Ares Capital by 70.7% in Q1. Financial Management Professionals Inc. now owns 1,775 shares of the investment management company valued at $37,000 after acquiring an additional 735 shares in the last quarter. Steph & Co. bought a new position in Ares Capital in Q4 worth around $42,000. Hardy Reed LLC bought a new position in Ares Capital in Q1 worth around $42,000. Finally, Western Pacific Wealth Management LP bought a new position in Ares Capital in Q4, valued at around $47,000. 29.44% of the shares are currently held by hedge funds and other institutional investors.
Ares Capital Company Profile (Get a rating)
Ares Capital Corporation is a business development firm specializing in the acquisition, recapitalization, mezzanine debt, restructurings, rescue financing and leveraged buyout transactions of middle market companies. He also does growth capital and general refinancing. He prefers to invest in companies active in basic and growth manufacturing, business services, consumer products, healthcare products and services, and information technology services.
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