StockNews.com Upgrades Ares Capital (NASDAQ:ARCC) to “Hold”

Ares Capital (NASDAQ:ARCC) was upgraded by analysts at StockNews.com from a “sell” rating to a “hold” rating in a research note issued on Tuesday.

Other equities analysts have also issued research reports about the stock. B. Riley increased their price target on shares of Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Royal Bank of Canada reaffirmed an “outperform” rating and set a $22.00 price target on shares of Ares Capital in a research note on Monday, August 5th. UBS Group upgraded Ares Capital to a “hold” rating in a research report on Friday, August 23rd. JMP Securities boosted their target price on Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a research report on Tuesday, July 30th. Finally, Compass Point upgraded shares of Ares Capital to a “strong-buy” rating in a research report on Tuesday, July 30th. Four investment analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $21.86.

Ares Capital Price Performance

NASDAQ:ARCC opened at $21.54 on Tuesday. The firm has a market capitalization of $13.92 billion, a price-to-earnings ratio of 8.28 and a beta of 1.01. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.29 and a current ratio of 1.29. The stock has a fifty day moving average of $21.06 and a 200 day moving average of $20.99. Ares Capital has a 52-week low of $19.32 and a 52-week high of $22.05.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.01). The business had revenue of $755.00 million for the quarter, compared to the consensus estimate of $770.45 million. Ares Capital had a net margin of 53.71% and a return on equity of 12.06%. The business’s revenue was up 15.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.59 EPS. On average, research analysts expect that Ares Capital will post 2.36 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Jamison Private Wealth Management Inc. boosted its stake in shares of Ares Capital by 62.7% during the 2nd quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock valued at $26,000 after purchasing an additional 475 shares in the last quarter. Asset Dedication LLC purchased a new position in shares of Ares Capital during the 2nd quarter worth approximately $26,000. Horizon Financial Services LLC bought a new position in shares of Ares Capital in the 3rd quarter worth approximately $28,000. Hobbs Group Advisors LLC purchased a new position in shares of Ares Capital in the 2nd quarter valued at approximately $32,000. Finally, nVerses Capital LLC boosted its position in shares of Ares Capital by 88.9% during the second quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company’s stock valued at $35,000 after purchasing an additional 800 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

About Ares Capital

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.