Ares Capital (NASDAQ:ARCC) Cut to Sell at Wall Street Zen

Wall Street Zen cut shares of Ares Capital (NASDAQ:ARCC) from a hold rating to a sell rating in a research note issued to investors on Saturday morning.

Several other research analysts also recently commented on the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a report on Monday, December 29th. UBS Group lowered their price objective on Ares Capital from $22.50 to $21.00 and set a “neutral” rating for the company in a research report on Tuesday, October 14th. Royal Bank Of Canada cut their price objective on Ares Capital from $24.00 to $23.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 29th. Wells Fargo & Company decreased their target price on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a research report on Thursday, February 5th. Finally, Citigroup restated a “market outperform” rating on shares of Ares Capital in a report on Thursday, October 30th. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $22.00.

Ares Capital Stock Performance

Ares Capital stock opened at $19.48 on Friday. The business has a 50 day moving average of $20.36 and a 200-day moving average of $20.83. The company has a market capitalization of $13.99 billion, a P/E ratio of 10.47 and a beta of 0.59. Ares Capital has a 1 year low of $18.26 and a 1 year high of $23.63. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.70 and a quick ratio of 1.70.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.50. The firm had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The company’s revenue for the quarter was up 4.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.55 EPS. On average, equities research analysts predict that Ares Capital will post 2.19 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.92 annualized dividend and a dividend yield of 9.9%. Ares Capital’s dividend payout ratio (DPR) is 103.23%.

Insider Buying and Selling at Ares Capital

In related news, CFO Scott C. Lem purchased 5,186 shares of Ares Capital stock in a transaction on Friday, February 6th. The stock was acquired at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the acquisition, the chief financial officer owned 39,463 shares of the company’s stock, valued at $761,241.27. This trade represents a 15.13% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Michael Kort Schnabel purchased 12,500 shares of the firm’s stock in a transaction on Thursday, February 5th. The stock was bought at an average cost of $19.13 per share, with a total value of $239,125.00. Following the completion of the purchase, the chief executive officer owned 40,500 shares of the company’s stock, valued at approximately $774,765. This represents a 44.64% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.48% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. City Holding Co. grew its position in Ares Capital by 444.4% in the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock valued at $25,000 after purchasing an additional 1,000 shares during the period. SWAN Capital LLC bought a new stake in shares of Ares Capital during the third quarter worth about $27,000. Fourth Dimension Wealth LLC acquired a new stake in shares of Ares Capital in the 2nd quarter worth about $29,000. NBT Bank N A NY bought a new position in Ares Capital in the 3rd quarter valued at about $31,000. Finally, Quarry LP acquired a new position in Ares Capital during the 3rd quarter valued at about $33,000. 27.38% of the stock is owned by institutional investors and hedge funds.

Ares Capital Company Profile

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.