Ares Capital Co. (NASDAQ:ARCC) saw a large increase in short interest in April. As of April 15th, there was short interest totalling 3,990,000 shares, an increase of 25.9% from the March 31st total of 3,170,000 shares. Based on an average daily trading volume, of 2,210,000 shares, the days-to-cover ratio is currently 1.8 days.
ARCC has been the subject of a number of analyst reports. Citigroup increased their price target on Ares Capital from $17.00 to $20.00 in a research note on Thursday, February 11th. JPMorgan Chase & Co. increased their target price on Ares Capital from $18.00 to $19.00 and gave the stock a “neutral” rating in a research report on Wednesday, March 17th. Raymond James boosted their price target on Ares Capital from $19.00 to $20.00 and gave the stock an “outperform” rating in a report on Thursday, April 29th. Zacks Investment Research lowered shares of Ares Capital from a “buy” rating to a “hold” rating and set a $20.00 price objective for the company. in a report on Tuesday, April 13th. Finally, TheStreet raised shares of Ares Capital from a “c+” rating to a “b-” rating in a report on Friday, April 30th. Three equities research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. Ares Capital has a consensus rating of “Buy” and an average price target of $18.56.
Several large investors have recently bought and sold shares of the company. HighTower Advisors LLC raised its holdings in Ares Capital by 133.7% during the 4th quarter. HighTower Advisors LLC now owns 2,378,385 shares of the investment management company’s stock valued at $40,164,000 after buying an additional 1,360,819 shares during the period. Nuveen Asset Management LLC bought a new stake in shares of Ares Capital in the 4th quarter worth about $11,045,000. Blair William & Co. IL boosted its stake in shares of Ares Capital by 144.7% during the 4th quarter. Blair William & Co. IL now owns 489,100 shares of the investment management company’s stock worth $8,261,000 after purchasing an additional 289,249 shares during the period. International Assets Investment Management LLC grew its holdings in Ares Capital by 103.1% during the 1st quarter. International Assets Investment Management LLC now owns 534,809 shares of the investment management company’s stock valued at $5,497,000 after purchasing an additional 271,482 shares during the last quarter. Finally, Capital Advisors Inc. OK raised its position in Ares Capital by 41.3% in the 4th quarter. Capital Advisors Inc. OK now owns 784,821 shares of the investment management company’s stock worth $13,256,000 after purchasing an additional 229,228 shares during the period. 31.33% of the stock is owned by institutional investors and hedge funds.
Ares Capital (NASDAQ:ARCC) last posted its earnings results on Tuesday, April 27th. The investment management company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.42 by $0.01. The firm had revenue of $390.00 million for the quarter, compared to the consensus estimate of $385.85 million. Ares Capital had a net margin of 21.28% and a return on equity of 10.05%. The business’s quarterly revenue was up 5.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.41 EPS. As a group, research analysts forecast that Ares Capital will post 1.59 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 30th. Shareholders of record on Tuesday, June 15th will be given a dividend of $0.40 per share. The ex-dividend date is Monday, June 14th. This represents a $1.60 dividend on an annualized basis and a yield of 8.42%. Ares Capital’s dividend payout ratio (DPR) is presently 84.66%.
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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