Ares Capital Co. (NASDAQ:ARCC) has been assigned a consensus rating of “Buy” from the eight brokerages that are covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a hold rating and seven have issued a buy rating on the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $18.25.

ARCC has been the subject of several research reports. BidaskClub lowered shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Tuesday, October 9th. Zacks Investment Research upgraded shares of Ares Capital from a “hold” rating to a “buy” rating and set a $18.00 price objective for the company in a research report on Wednesday, October 24th. National Securities restated a “buy” rating and set a $19.00 price objective on shares of Ares Capital in a research report on Thursday, November 1st. Finally, Oppenheimer set a $18.00 price objective on shares of Ares Capital and gave the company a “buy” rating in a research report on Thursday, November 1st.

ARCC remained flat at $$16.29 on Friday. 1,672,162 shares of the company were exchanged, compared to its average volume of 2,162,825. The company has a market cap of $6.91 billion, a price-to-earnings ratio of 11.72, a PEG ratio of 3.20 and a beta of 0.61. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 0.62. Ares Capital has a 12-month low of $14.50 and a 12-month high of $17.63.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Wednesday, October 31st. The investment management company reported $0.45 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.05. Ares Capital had a net margin of 72.13% and a return on equity of 9.34%. The firm had revenue of $342.00 million during the quarter, compared to analyst estimates of $320.15 million. During the same quarter in the prior year, the firm posted $0.36 EPS. Ares Capital’s revenue was up 16.3% compared to the same quarter last year. As a group, research analysts anticipate that Ares Capital will post 1.63 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, December 28th. Shareholders of record on Friday, December 14th were issued a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 9.58%. The ex-dividend date was Thursday, December 13th. Ares Capital’s payout ratio is 112.23%.

In other news, CEO R. Kipp Deveer bought 50,000 shares of the firm’s stock in a transaction on Friday, December 14th. The stock was bought at an average cost of $16.02 per share, for a total transaction of $801,000.00. Following the completion of the acquisition, the chief executive officer now directly owns 225,000 shares in the company, valued at approximately $3,604,500. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Penelope F. Roll sold 6,000 shares of the firm’s stock in a transaction dated Tuesday, November 20th. The stock was sold at an average price of $16.76, for a total transaction of $100,560.00. Following the completion of the transaction, the chief financial officer now owns 11,147 shares of the company’s stock, valued at $186,823.72. The disclosure for this sale can be found here. Over the last quarter, insiders acquired 50,600 shares of company stock valued at $810,756. Corporate insiders own 0.49% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Baker Ellis Asset Management LLC purchased a new stake in shares of Ares Capital in the third quarter worth approximately $138,000. Rehmann Capital Advisory Group lifted its position in shares of Ares Capital by 43.5% in the second quarter. Rehmann Capital Advisory Group now owns 9,658 shares of the investment management company’s stock worth $159,000 after purchasing an additional 2,930 shares in the last quarter. grace capital purchased a new stake in shares of Ares Capital in the second quarter worth approximately $165,000. McKinley Carter Wealth Services Inc. purchased a new stake in shares of Ares Capital in the third quarter worth approximately $175,000. Finally, Partnervest Advisory Services LLC purchased a new stake in shares of Ares Capital in the third quarter worth approximately $176,000. Institutional investors own 39.26% 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.

Further Reading: Quiet Period

Analyst Recommendations for Ares Capital (NASDAQ:ARCC)

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