Ares Capital (NASDAQ:ARCC) Downgraded to Sell at BidaskClub

Ares Capital (NASDAQ:ARCC) was downgraded by BidaskClub from a “hold” rating to a “sell” rating in a research report issued on Tuesday, BidAskClub reports.

ARCC has been the subject of a number of other reports. Royal Bank of Canada initiated coverage on Ares Capital in a research note on Tuesday, November 12th. They set an “outperform” rating and a $20.00 price target for the company. ValuEngine raised Ares Capital from a “sell” rating to a “hold” rating in a research note on Thursday, October 31st. Finally, Raymond James downgraded Ares Capital from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 22nd. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and six have assigned a buy rating to the stock. Ares Capital currently has an average rating of “Buy” and a consensus target price of $19.86.

Shares of ARCC traded up $0.09 during midday trading on Tuesday, reaching $18.95. 402,290 shares of the stock were exchanged, compared to its average volume of 1,489,410. Ares Capital has a 12-month low of $15.82 and a 12-month high of $19.28. The firm has a 50 day simple moving average of $18.68 and a 200-day simple moving average of $18.56. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.89. The company has a market cap of $8.06 billion, a price-to-earnings ratio of 11.28 and a beta of 0.58.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Wednesday, October 30th. The investment management company reported $0.48 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.46 by $0.02. Ares Capital had a return on equity of 10.97% and a net margin of 49.90%. The company had revenue of $387.00 million during the quarter, compared to the consensus estimate of $370.17 million. During the same period last year, the business earned $0.45 EPS. The business’s quarterly revenue was up 13.2% on a year-over-year basis. Research analysts expect that Ares Capital will post 1.9 earnings per share for the current fiscal year.

In related 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 acquired at an average cost of $18.35 per share, with a total value of $260,147.95. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Steven B. Mckeever acquired 3,000 shares of the business’s stock in a transaction that occurred on Thursday, December 5th. The stock was bought at an average cost of $18.74 per share, for a total transaction of $56,220.00. The disclosure for this purchase can be found here. 0.53% of the stock is currently owned by company insiders.

Several hedge funds have recently modified their holdings of ARCC. Northern Trust Corp increased its position in Ares Capital by 1.1% in the 2nd quarter. Northern Trust Corp now owns 193,376 shares of the investment management company’s stock worth $3,468,000 after buying an additional 2,136 shares during the period. MML Investors Services LLC grew its holdings in shares of Ares Capital by 2.4% during the 2nd quarter. MML Investors Services LLC now owns 46,813 shares of the investment management company’s stock worth $840,000 after purchasing an additional 1,086 shares in the last quarter. Parametric Portfolio Associates LLC grew its holdings in shares of Ares Capital by 1.2% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 129,919 shares of the investment management company’s stock worth $2,331,000 after purchasing an additional 1,542 shares in the last quarter. United Capital Financial Advisers LLC grew its holdings in shares of Ares Capital by 23.4% during the 2nd quarter. United Capital Financial Advisers LLC now owns 155,717 shares of the investment management company’s stock worth $2,794,000 after purchasing an additional 29,534 shares in the last quarter. Finally, US Bancorp DE grew its holdings in shares of Ares Capital by 7.7% during the 2nd quarter. US Bancorp DE now owns 70,150 shares of the investment management company’s stock worth $1,259,000 after purchasing an additional 5,022 shares in the last quarter. 35.01% of the stock is currently owned by institutional investors and hedge funds.

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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