Ares Capital Corp. (NASDAQ:ARCC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The firm presently has a $18.00 price objective on the investment management company’s stock. Zacks Investment Research’s price objective would suggest a potential upside of 14.14% from the company’s previous close.

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. “

ARCC has been the topic of several other reports. National Securities restated a “neutral” rating and issued a $16.00 target price on shares of Ares Capital Corp. in a research report on Thursday, August 4th. Janney Montgomery Scott began coverage on Ares Capital Corp. in a research report on Monday, October 31st. They issued a “neutral” rating and a $16.50 target price on the stock. Keefe, Bruyette & Woods raised their target price on Ares Capital Corp. from $17.00 to $17.50 and gave the company an “outperform” rating in a research report on Thursday, August 4th. Barclays PLC restated a “buy” rating on shares of Ares Capital Corp. in a research report on Thursday, November 3rd. Finally, Jefferies Group restated a “buy” rating and issued a $17.50 target price on shares of Ares Capital Corp. in a research report on Tuesday, October 25th. Four investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $16.81.

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

Ares Capital Corp. (NASDAQ:ARCC) traded up 0.25% during trading on Tuesday, hitting $15.77. The stock had a trading volume of 2,046,687 shares. Ares Capital Corp. has a 1-year low of $12.31 and a 1-year high of $16.43. The stock has a market cap of $4.95 billion, a PE ratio of 11.83 and a beta of 0.66. The firm’s 50-day moving average price is $15.42 and its 200-day moving average price is $15.18.

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, topping analysts’ consensus estimates of $0.39 by $0.04. Ares Capital Corp. had a return on equity of 9.57% and a net margin of 40.83%. During the same quarter in the previous year, the business posted $0.41 EPS. On average, equities research analysts predict that Ares Capital Corp. will post $1.57 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 30th. Stockholders of record on Thursday, December 15th will be paid a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 9.64%. The ex-dividend date is Tuesday, December 13th. Ares Capital Corp.’s dividend payout ratio is presently 115.15%.

Large investors have recently added to or reduced their stakes in the company. State of New Jersey Common Pension Fund D raised its stake in Ares Capital Corp. by 161.8% in the third quarter. State of New Jersey Common Pension Fund D now owns 4,975,000 shares of the investment management company’s stock valued at $77,113,000 after buying an additional 3,075,000 shares in the last quarter. Muzinich & Co. Inc. raised its stake in Ares Capital Corp. by 158.2% in the third quarter. Muzinich & Co. Inc. now owns 3,606,602 shares of the investment management company’s stock valued at $55,902,000 after buying an additional 2,209,623 shares in the last quarter. LGT Capital Partners LTD. bought a new stake in Ares Capital Corp. during the second quarter valued at $26,128,000. Pioneer Investment Management Inc. raised its stake 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 in the last quarter. Finally, Yorktown Management & Research Co Inc raised its stake in Ares Capital Corp. by 156.1% in the third quarter. Yorktown Management & Research Co Inc now owns 1,690,000 shares of the investment management company’s stock valued at $26,195,000 after buying an additional 1,030,000 shares in the last quarter. 50.48% of the stock is owned by institutional investors and hedge funds.

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About Ares Capital Corp.

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.

5 Day Chart for NASDAQ:ARCC

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