Ares Capital (ARCC) Reaches New 12-Month High at $17.60

Ares Capital Co. (NASDAQ:ARCC)’s share price hit a new 52-week high during trading on Thursday . The stock traded as high as $17.60 and last traded at $17.56, with a volume of 38372 shares traded. The stock had previously closed at $17.50.

ARCC has been the topic of several research analyst reports. BidaskClub cut shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Wednesday, July 11th. National Securities reaffirmed a “buy” rating and set a $19.00 price target on shares of Ares Capital in a research report on Monday, August 6th. Citigroup initiated coverage on shares of Ares Capital in a research report on Thursday, August 23rd. They set a “buy” rating and a $19.00 price target on the stock. Finally, Zacks Investment Research raised shares of Ares Capital from a “hold” rating to a “buy” rating and set a $18.00 price target on the stock in a research report on Wednesday, October 24th. Two research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $18.13.

The company has a debt-to-equity ratio of 0.62, a quick ratio of 2.41 and a current ratio of 2.41. The firm has a market capitalization of $7.43 billion, a PE ratio of 12.62, a PEG ratio of 3.57 and a beta of 0.60.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Wednesday, October 31st. The investment management company reported $0.45 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.40 by $0.05. Ares Capital had a net margin of 72.13% and a return on equity of 9.34%. The firm had revenue of $342.00 million for the quarter, compared to analysts’ expectations of $320.15 million. During the same quarter last year, the company posted $0.36 earnings per share. Ares Capital’s revenue was up 16.3% on a year-over-year basis. As a group, sell-side analysts anticipate that Ares Capital Co. will post 1.63 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 28th. Shareholders of record on Friday, December 14th will be issued a $0.39 dividend. The ex-dividend date of this dividend is Thursday, December 13th. This represents a $1.56 dividend on an annualized basis and a yield of 8.89%. Ares Capital’s dividend payout ratio is currently 112.23%.

In other news, Director Eric B. Siegel purchased 6,990 shares of the company’s stock in a transaction on Wednesday, September 12th. The shares were bought at an average price of $17.30 per share, for a total transaction of $120,927.00. Following the completion of the purchase, the director now owns 36,630 shares of the company’s stock, valued at $633,699. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Bates Ann Torre purchased 9,000 shares of the company’s stock in a transaction on Wednesday, August 29th. The stock was purchased at an average price of $17.44 per share, for a total transaction of $156,960.00. Following the purchase, the director now directly owns 20,000 shares of the company’s stock, valued at approximately $348,800. The disclosure for this purchase can be found here. Insiders acquired 16,590 shares of company stock worth $288,055 in the last three months. 0.49% of the stock is currently owned by corporate insiders.

Several large investors have recently made changes to their positions in ARCC. Millennium Management LLC increased its stake in shares of Ares Capital by 65.3% in the second quarter. Millennium Management LLC now owns 3,408,182 shares of the investment management company’s stock valued at $56,065,000 after purchasing an additional 1,346,837 shares during the period. Standard Life Aberdeen plc acquired a new stake in shares of Ares Capital in the second quarter valued at approximately $17,133,000. Caisse DE Depot ET Placement DU Quebec acquired a new stake in shares of Ares Capital in the second quarter valued at approximately $5,807,000. PVG Asset Management Corp acquired a new stake in shares of Ares Capital in the second quarter valued at approximately $5,419,000. Finally, Chartwell Investment Partners LLC increased its stake in shares of Ares Capital by 44.3% in the third quarter. Chartwell Investment Partners LLC now owns 754,768 shares of the investment management company’s stock valued at $12,975,000 after purchasing an additional 231,746 shares during the period. Institutional investors own 40.47% of the company’s stock.

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About Ares Capital (NASDAQ:ARCC)

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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