Ares Capital (NASDAQ:ARCC) Coverage Initiated by Analysts at Royal Bank of Canada

Stock analysts at Royal Bank of Canada began coverage on shares of Ares Capital (NASDAQ:ARCC) in a report released on Tuesday, Marketbeat Ratings reports. The firm set an “outperform” rating and a $20.00 price target on the investment management company’s stock. Royal Bank of Canada’s price objective would suggest a potential upside of 7.18% from the company’s current price.

Several other research analysts have also issued reports on the stock. Compass Point lowered shares of Ares Capital from a “buy” rating to a “neutral” rating in a research report on Friday, August 23rd. ValuEngine upgraded shares of Ares Capital from a “sell” rating to a “hold” rating in a research report on Thursday, October 31st. BMO Capital Markets upgraded shares of Ares Capital from a “market perform” rating to an “outperform” rating and lifted their price objective for the stock from $19.00 to $20.00 in a research report on Monday, August 19th. Raymond James cut shares of Ares Capital from an “outperform” rating to a “market perform” rating in a research report on Tuesday, October 22nd. They noted that the move was a valuation call. Finally, BidaskClub cut shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Wednesday, October 30th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and six have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average target price of $19.86.

Shares of ARCC traded up $0.01 during mid-day trading on Tuesday, reaching $18.66. 1,565,600 shares of the company’s stock traded hands, compared to its average volume of 1,538,315. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.05 and a current ratio of 1.05. The stock has a market capitalization of $7.97 billion, a P/E ratio of 11.11 and a beta of 0.59. Ares Capital has a 12 month low of $14.50 and a 12 month high of $19.28. The business’s 50-day moving average price is $18.49 and its 200-day moving average price is $18.29.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Wednesday, October 30th. The investment management company reported $0.48 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.46 by $0.02. The firm had revenue of $387.00 million for the quarter, compared to analyst estimates of $370.17 million. Ares Capital had a net margin of 49.90% and a return on equity of 10.97%. The firm’s quarterly revenue was up 13.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.45 earnings per share. Equities research analysts anticipate that Ares Capital will post 1.89 EPS for the current year.

In other news, Director Steve Bartlett acquired 14,177 shares of the stock in a transaction on Thursday, October 31st. The shares were purchased at an average cost of $18.35 per share, for a total transaction of $260,147.95. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.53% of the company’s stock.

Several institutional investors have recently bought and sold shares of the company. First Allied Advisory Services Inc. grew its holdings in shares of Ares Capital by 34.3% during the 3rd quarter. First Allied Advisory Services Inc. now owns 77,938 shares of the investment management company’s stock valued at $1,455,000 after acquiring an additional 19,887 shares in the last quarter. Cetera Advisor Networks LLC grew its holdings in shares of Ares Capital by 2.3% during the 3rd quarter. Cetera Advisor Networks LLC now owns 49,338 shares of the investment management company’s stock valued at $922,000 after acquiring an additional 1,125 shares in the last quarter. Insight Wealth Strategies LLC purchased a new position in shares of Ares Capital during the 3rd quarter valued at $285,000. Perennial Advisors LLC grew its holdings in shares of Ares Capital by 7.5% during the 3rd quarter. Perennial Advisors LLC now owns 112,145 shares of the investment management company’s stock valued at $2,090,000 after acquiring an additional 7,776 shares in the last quarter. Finally, D.A. Davidson & CO. grew its holdings in shares of Ares Capital by 16.8% during the 3rd quarter. D.A. Davidson & CO. now owns 134,565 shares of the investment management company’s stock valued at $2,508,000 after acquiring an additional 19,337 shares in the last quarter. Institutional investors and hedge funds own 36.43% of the company’s stock.

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.

Featured Article: Growth Stocks

Analyst Recommendations for Ares Capital (NASDAQ:ARCC)

Receive News & Ratings for Ares Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ares Capital and related companies with MarketBeat.com's FREE daily email newsletter.