Ares Capital Corp. (NASDAQ:ARCC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage presently has a $17.00 price objective on the investment management company’s stock. Zacks Investment Research’s target price suggests a potential upside of 9.68% from the company’s current price.

According to Zacks, “ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. “

Other equities research analysts have also recently issued reports about the stock. National Securities reiterated a “neutral” rating and set a $16.00 price target on shares of Ares Capital Corp. in a research report on Thursday, August 4th. JMP Securities reiterated a “buy” rating on shares of Ares Capital Corp. in a research report on Thursday, November 3rd. TheStreet cut shares of Ares Capital Corp. from a “buy” rating to a “hold” rating in a research report on Monday, November 7th. Keefe, Bruyette & Woods lifted their price target on shares of Ares Capital Corp. from $17.00 to $17.50 and gave the company an “outperform” rating in a research report on Thursday, August 4th. Finally, Barclays PLC reiterated a “buy” rating on shares of Ares Capital Corp. in a research report on Thursday, November 3rd. Four research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $16.69.

Analyst Recommendations for Ares Capital Corp. (NASDAQ:ARCC)

Shares of Ares Capital Corp. (NASDAQ:ARCC) opened at 15.52 on Tuesday. The stock has a market cap of $4.87 billion, a PE ratio of 11.64 and a beta of 0.66. The company’s 50-day moving average is $15.40 and its 200-day moving average is $15.17. Ares Capital Corp. has a 52-week low of $12.31 and a 52-week high of $16.43.

Ares Capital Corp. (NASDAQ:ARCC) last announced its quarterly earnings results on Wednesday, November 2nd. The investment management company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.04. Ares Capital Corp. had a net margin of 40.83% and a return on equity of 9.57%. During the same quarter in the previous year, the firm earned $0.41 earnings per share. Equities analysts anticipate that Ares Capital Corp. will post $1.57 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, December 30th. Shareholders of record on Thursday, December 15th will be issued a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 9.81%. The ex-dividend date of this dividend is Tuesday, December 13th. Ares Capital Corp.’s dividend payout ratio (DPR) is presently 115.15%.

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Pioneer Investment Management Inc. boosted its position in Ares Capital Corp. by 1,153.4% in the third quarter. Pioneer Investment Management Inc. now owns 1,947,495 shares of the investment management company’s stock valued at $30,186,000 after buying an additional 1,792,113 shares during the period. B. Riley Financial Inc. boosted its position in Ares Capital Corp. by 1.3% in the third quarter. B. Riley Financial Inc. now owns 76,778 shares of the investment management company’s stock valued at $1,190,000 after buying an additional 1,000 shares during the period. Chartwell Investment Partners LLC boosted its position in Ares Capital Corp. by 6.2% in the third quarter. Chartwell Investment Partners LLC now owns 471,526 shares of the investment management company’s stock valued at $7,308,000 after buying an additional 27,424 shares during the period. Eaton Vance Management boosted its position in Ares Capital Corp. by 8.4% in the third quarter. Eaton Vance Management now owns 64,603 shares of the investment management company’s stock valued at $1,001,000 after buying an additional 5,013 shares during the period. Finally, KCM Investment Advisors LLC purchased a new position in Ares Capital Corp. during the third quarter valued at approximately $161,000. Institutional investors own 50.72% of the company’s stock.

Ares Capital Corp. Company Profile

Ares Capital Corporation is a specialty finance company that is a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in the United States middle-market companies.

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