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

Ares Capital Corporation (NASDAQ:ARCC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday, November 6th.

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. “

ARCC has been the subject of a number of other reports. National Securities reiterated a “buy” rating and set a $19.00 price target on shares of Ares Capital in a research report on Friday, November 3rd. Jefferies Group LLC restated a “buy” rating and set a $19.50 price objective on shares of Ares Capital in a research report on Friday, November 3rd. Keefe, Bruyette & Woods set a $19.00 price objective on Ares Capital and gave the stock a “buy” rating in a research report on Friday, October 6th. CIBC initiated coverage on Ares Capital in a research report on Thursday, September 21st. They set an “outperform” rating and a $18.00 price objective for the company. Finally, Oppenheimer Holdings, Inc. started coverage on Ares Capital in a research report on Thursday, September 21st. They set an “outperform” rating and a $18.00 price objective for the company. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and eight have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus price target of $18.06.

Shares of Ares Capital (NASDAQ ARCC) traded up $0.05 during mid-day trading on Monday, hitting $16.37. The company’s stock had a trading volume of 911,830 shares, compared to its average volume of 1,737,661. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.29 and a current ratio of 1.29. Ares Capital has a 12 month low of $15.48 and a 12 month high of $17.87. The stock has a market capitalization of $6,957.20, a price-to-earnings ratio of 11.33, a price-to-earnings-growth ratio of 3.94 and a beta of 0.63.

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

In other Ares Capital news, Director Michael J. Arougheti purchased 8,365 shares of the firm’s stock in a transaction that occurred on Friday, November 3rd. The stock was purchased at an average cost of $15.85 per share, with a total value of $132,585.25. Following the transaction, the director now owns 937,054 shares in the company, valued at $14,852,305.90. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last ninety days, insiders have purchased 8,965 shares of company stock valued at $142,323. 0.45% of the stock is owned by corporate insiders.

A number of institutional investors have recently made changes to their positions in the stock. Round Table Services LLC lifted its holdings in Ares Capital by 0.4% in the 2nd quarter. Round Table Services LLC now owns 10,225 shares of the investment management company’s stock worth $167,000 after buying an additional 39 shares in the last quarter. Alpha Omega Wealth Management LLC lifted its holdings in Ares Capital by 1.7% in the 2nd quarter. Alpha Omega Wealth Management LLC now owns 12,184 shares of the investment management company’s stock worth $200,000 after buying an additional 199 shares in the last quarter. Hudock Capital Group LLC lifted its holdings in Ares Capital by 3.2% in the 2nd quarter. Hudock Capital Group LLC now owns 6,500 shares of the investment management company’s stock worth $106,000 after buying an additional 200 shares in the last quarter. Honkamp Krueger Financial Services Inc. lifted its holdings in Ares Capital by 2.0% in the 2nd quarter. Honkamp Krueger Financial Services Inc. now owns 13,472 shares of the investment management company’s stock worth $221,000 after buying an additional 260 shares in the last quarter. Finally, M&R Capital Management Inc. lifted its holdings in Ares Capital by 2.8% in the 2nd quarter. M&R Capital Management Inc. now owns 11,755 shares of the investment management company’s stock worth $188,000 after buying an additional 320 shares in the last quarter. 43.90% of the stock is owned by hedge funds and other institutional investors.

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Ares Capital 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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