Zacks Investment Research Downgrades Ares Capital Corporation (ARCC) to Sell

Zacks Investment Research lowered shares of Ares Capital Corporation (NASDAQ:ARCC) from a hold rating to a sell rating in a report issued on Monday morning.

According to Zacks, “ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. “

A number of other research analysts have also recently commented on the company. National Securities reaffirmed a buy rating and set a $19.00 price target on shares of Ares Capital Corporation in a research report on Friday, November 3rd. Jefferies Group LLC reiterated a buy rating and set a $19.50 price objective on shares of Ares Capital Corporation in a research note on Friday, November 3rd. Keefe, Bruyette & Woods set a $19.00 price objective on Ares Capital Corporation and gave the company a buy rating in a research note on Friday, October 6th. CIBC started coverage on Ares Capital Corporation in a research note on Thursday, September 21st. They set an outperform rating and a $18.00 price objective on the stock. Finally, Oppenheimer Holdings, Inc. started coverage on Ares Capital Corporation in a research note on Thursday, September 21st. They set an outperform rating and a $18.00 price objective on the stock. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and eight have given a buy rating to the stock. Ares Capital Corporation presently has an average rating of Buy and an average price target of $18.06.

Shares of Ares Capital Corporation (NASDAQ ARCC) traded up $0.07 during midday trading on Monday, hitting $16.26. The stock had a trading volume of 94,740 shares, compared to its average volume of 1,722,820. Ares Capital Corporation has a 1 year low of $15.38 and a 1 year high of $17.87. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.29 and a quick ratio of 1.29. The stock has a market cap of $6,987.04, a PE ratio of 11.38, a PEG ratio of 3.96 and a beta of 0.63.

Ares Capital Corporation (NASDAQ:ARCC) last issued its quarterly earnings results on Thursday, November 2nd. The investment management company reported $0.36 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.01. Ares Capital Corporation had a return on equity of 8.60% and a net margin of 45.78%. The firm had revenue of $294.00 million for the quarter, compared to analysts’ expectations of $295.02 million. During the same quarter in the prior year, the firm earned $0.43 EPS. research analysts forecast that Ares Capital Corporation will post 1.38 earnings per share for the current fiscal year.

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The firm also recently announced a quarterly dividend, which will be paid on Friday, December 29th. Shareholders of record on Friday, December 15th will be paid a $0.38 dividend. The ex-dividend date of this dividend is Thursday, December 14th. This represents a $1.52 dividend on an annualized basis and a yield of 9.35%. Ares Capital Corporation’s dividend payout ratio is currently 119.69%.

In other Ares Capital Corporation news, Director Michael J. Arougheti bought 8,365 shares of the firm’s stock in a transaction on Friday, November 3rd. The shares were acquired at an average cost of $15.85 per share, for a total transaction of $132,585.25. Following the purchase, the director now directly owns 937,054 shares of the company’s stock, valued at $14,852,305.90. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders acquired a total of 8,965 shares of company stock worth $142,283 over the last 90 days. Corporate insiders own 0.45% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Legal & General Group Plc increased its stake in Ares Capital Corporation by 11.8% in the 3rd quarter. Legal & General Group Plc now owns 1,242,363 shares of the investment management company’s stock worth $20,381,000 after acquiring an additional 131,430 shares during the last quarter. Fernwood Investment Management LLC increased its stake in Ares Capital Corporation by 6.2% in the 3rd quarter. Fernwood Investment Management LLC now owns 95,439 shares of the investment management company’s stock worth $1,564,000 after acquiring an additional 5,543 shares during the last quarter. Relative Value Partners Group LLC increased its stake in Ares Capital Corporation by 16.2% in the 3rd quarter. Relative Value Partners Group LLC now owns 230,068 shares of the investment management company’s stock worth $3,771,000 after acquiring an additional 32,157 shares during the last quarter. Oppenheimer & Co. Inc. increased its stake in Ares Capital Corporation by 89.2% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 25,139 shares of the investment management company’s stock worth $412,000 after acquiring an additional 11,855 shares during the last quarter. Finally, Park Avenue Securities LLC increased its stake in Ares Capital Corporation by 36.5% in the 3rd quarter. Park Avenue Securities LLC now owns 16,236 shares of the investment management company’s stock worth $266,000 after acquiring an additional 4,343 shares during the last quarter. Institutional investors and hedge funds own 45.28% of the company’s stock.

Ares Capital Corporation Company Profile

Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.

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