Royal Bank of Canada Begins Coverage on Ares Capital (NASDAQ:ARCC)

Royal Bank of Canada started coverage on shares of Ares Capital (NASDAQ:ARCC) in a report published on Tuesday, Briefing.com Automated Import reports. The firm issued an outperform rating and a $20.00 price target on the investment management company’s stock.

Several other analysts also recently commented on the stock. BMO Capital Markets raised shares of Ares Capital from a market perform rating to an outperform rating and increased their price objective for the company from $19.00 to $20.00 in a research report on Monday, August 19th. ValuEngine raised shares of Ares Capital from a sell rating to a hold rating in a research report on Thursday, October 31st. BidaskClub downgraded shares of Ares Capital from a hold rating to a sell rating in a research report on Wednesday, October 30th. Raymond James downgraded shares of Ares Capital from an outperform rating to a market perform rating in a research report on Tuesday, October 22nd. They noted that the move was a valuation call. Finally, Zacks Investment Research raised shares of Ares Capital from a hold rating to a buy rating and set a $20.00 price objective on the stock in a research report on Monday, August 26th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and six have given a buy rating to the company. The stock has an average rating of Buy and an average target price of $19.86.

NASDAQ:ARCC traded up $0.01 during midday trading on Tuesday, reaching $18.66. 1,565,600 shares of the stock traded hands, compared to its average volume of 1,538,315. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.05 and a current ratio of 1.05. The company has a fifty day moving average of $18.49 and a 200 day moving average of $18.29. The stock has a market capitalization of $7.97 billion, a P/E ratio of 11.11 and a beta of 0.59. Ares Capital has a 12 month low of $14.50 and a 12 month high of $19.28.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Wednesday, October 30th. The investment management company reported $0.48 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.46 by $0.02. Ares Capital had a net margin of 49.90% and a return on equity of 10.97%. The company had revenue of $387.00 million for the quarter, compared to the consensus estimate of $370.17 million. During the same period in the prior year, the firm posted $0.45 EPS. Ares Capital’s revenue for the quarter was up 13.2% on a year-over-year basis. On average, analysts predict that Ares Capital will post 1.89 EPS for the current fiscal year.

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The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Monday, December 16th will be given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 9.00%. This is an increase from Ares Capital’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Friday, December 13th. Ares Capital’s dividend payout ratio is 95.24%.

In other news, Director Steve Bartlett acquired 14,177 shares of the business’s stock in a transaction that occurred on Thursday, October 31st. The shares were bought at an average cost of $18.35 per share, with a total value of $260,147.95. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.53% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. First Allied Advisory Services Inc. boosted its holdings in shares of Ares Capital by 34.3% during the 3rd quarter. First Allied Advisory Services Inc. now owns 77,938 shares of the investment management company’s stock valued at $1,455,000 after acquiring an additional 19,887 shares during the last quarter. Cetera Advisor Networks LLC boosted its holdings in shares of Ares Capital by 2.3% during the 3rd quarter. Cetera Advisor Networks LLC now owns 49,338 shares of the investment management company’s stock valued at $922,000 after acquiring an additional 1,125 shares during the last quarter. Insight Wealth Strategies LLC purchased a new stake in shares of Ares Capital during the 3rd quarter valued at about $285,000. Perennial Advisors LLC boosted its holdings in shares of Ares Capital by 7.5% during the 3rd quarter. Perennial Advisors LLC now owns 112,145 shares of the investment management company’s stock valued at $2,090,000 after acquiring an additional 7,776 shares during the last quarter. Finally, D.A. Davidson & CO. boosted its holdings in shares of Ares Capital by 16.8% during the 3rd quarter. D.A. Davidson & CO. now owns 134,565 shares of the investment management company’s stock valued at $2,508,000 after acquiring an additional 19,337 shares during the last quarter. 36.43% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Company Profile

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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Analyst Recommendations for Ares Capital (NASDAQ:ARCC)

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