Ares Capital Corp. (NASDAQ:ARCC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday. The brokerage currently has a $18.00 target price on the investment management company’s stock. Zacks Investment Research’s price target would indicate a potential upside of 12.29% from the stock’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. “

A number of other research analysts have also recently weighed in on ARCC. TheStreet cut shares of Ares Capital Corp. from a “buy” rating to a “hold” rating in a research report on Monday, November 7th. Jefferies Group reiterated a “buy” rating and set a $17.50 price objective on shares of Ares Capital Corp. in a research report on Thursday, August 4th. National Securities restated a “neutral” rating and issued a $16.00 price target on shares of Ares Capital Corp. in a report on Thursday, August 4th. Barclays PLC restated a “buy” rating on shares of Ares Capital Corp. in a report on Thursday, November 3rd. Finally, Keefe, Bruyette & Woods upped their price target on shares of Ares Capital Corp. from $17.00 to $17.50 and gave the stock an “outperform” rating in a report on Thursday, August 4th. Four equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $16.81.

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

Shares of Ares Capital Corp. (NASDAQ:ARCC) traded up 0.06% on Wednesday, reaching $16.03. 1,645,743 shares of the company were exchanged. The company’s 50-day moving average is $15.46 and its 200-day moving average is $15.20. 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 posted its quarterly earnings data on Wednesday, November 2nd. The investment management company reported $0.43 earnings per share for the quarter, beating the Zacks’ consensus estimate 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 business earned $0.41 EPS. On average, analysts expect that Ares Capital Corp. will post $1.57 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 30th. Investors of record on Thursday, December 15th will be paid a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 9.48%. The ex-dividend date of this dividend is Tuesday, December 13th. Ares Capital Corp.’s dividend payout ratio (DPR) is presently 115.15%.

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A number of hedge funds have recently added to or reduced their stakes in the company. D.A. Davidson & CO. raised its stake in Ares Capital Corp. by 6.6% in the third quarter. D.A. Davidson & CO. now owns 135,894 shares of the investment management company’s stock worth $2,105,000 after buying an additional 8,428 shares during the period. 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 during the last quarter. B. Riley Financial Inc. raised its stake 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 last quarter. Chartwell Investment Partners LLC raised its stake 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 last quarter. Finally, Eaton Vance Management raised its stake 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 last quarter. 52.31% of the stock is owned by institutional investors.

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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