Ares Capital (NASDAQ:ARCC) PT Lowered to $15.00 at Wells Fargo & Co

Ares Capital (NASDAQ:ARCC) had its target price lowered by Wells Fargo & Co from $20.50 to $15.00 in a report released on Wednesday, BenzingaRatingsTable reports. The firm currently has an overweight rating on the investment management company’s stock.

Several other research analysts have also recently issued reports on ARCC. TheStreet cut shares of Ares Capital from a b rating to a c+ rating in a report on Wednesday, March 18th. ValuEngine upgraded shares of Ares Capital from a sell rating to a hold rating in a report on Monday, March 9th. Finally, BidaskClub cut shares of Ares Capital from a hold rating to a sell rating in a report on Wednesday, March 18th. Four research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The stock has a consensus rating of Buy and an average price target of $19.21.

ARCC traded down $0.63 on Wednesday, hitting $11.29. 5,366,312 shares of the company’s stock were exchanged, compared to its average volume of 8,628,982. The firm has a market cap of $5.14 billion, a PE ratio of 6.07 and a beta of 0.67. Ares Capital has a twelve month low of $7.90 and a twelve month high of $19.33. The stock has a fifty day moving average of $16.26 and a two-hundred day moving average of $18.08. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.93.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, February 12th. The investment management company reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. Ares Capital had a net margin of 51.90% and a return on equity of 10.89%. The firm had revenue of $386.00 million during the quarter, compared to analysts’ expectations of $387.39 million. During the same quarter in the prior year, the firm earned $0.45 EPS. On average, analysts predict that Ares Capital will post 1.83 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 16th will be given a $0.40 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.60 annualized dividend and a dividend yield of 14.17%. Ares Capital’s dividend payout ratio (DPR) is presently 84.66%.

In related news, Director Steven B. Mckeever bought 3,375 shares of the business’s stock in a transaction on Thursday, March 12th. The stock was bought at an average price of $14.57 per share, for a total transaction of $49,173.75. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.53% of the stock is currently owned by corporate insiders.

Hedge funds have recently added to or reduced their stakes in the business. Confluence Investment Management LLC increased its stake in shares of Ares Capital by 0.5% during the 4th quarter. Confluence Investment Management LLC now owns 5,065,844 shares of the investment management company’s stock worth $94,478,000 after purchasing an additional 24,111 shares during the last quarter. Lord Abbett & CO. LLC increased its stake in shares of Ares Capital by 1.4% during the 4th quarter. Lord Abbett & CO. LLC now owns 3,282,636 shares of the investment management company’s stock worth $61,221,000 after purchasing an additional 45,695 shares during the last quarter. Vaughan Nelson Investment Management L.P. increased its stake in shares of Ares Capital by 12.5% during the 4th quarter. Vaughan Nelson Investment Management L.P. now owns 2,997,649 shares of the investment management company’s stock worth $55,906,000 after purchasing an additional 332,480 shares during the last quarter. UBS Group AG increased its stake in shares of Ares Capital by 21.5% during the 4th quarter. UBS Group AG now owns 2,914,337 shares of the investment management company’s stock worth $54,352,000 after purchasing an additional 516,104 shares during the last quarter. Finally, Van ECK Associates Corp increased its stake in shares of Ares Capital by 16.1% during the 4th quarter. Van ECK Associates Corp now owns 2,698,790 shares of the investment management company’s stock worth $50,332,000 after purchasing an additional 374,362 shares during the last quarter. Institutional investors own 34.51% 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.

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Analyst Recommendations for Ares Capital (NASDAQ:ARCC)

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