Ares Capital (NASDAQ:ARCC) Raised to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Ares Capital from “sell” to “hold,” while the broader analyst consensus remains “Moderate Buy” with a $20.60 price target.
• Ares Capital opened at $19.40, down 1.3%, with shares trading between a 52-week range of $17.40 and $21.64. The company reported quarterly EPS of $0.47, matching estimates, and revenue of $768 million, slightly below expectations.
• Institutional ownership stands at 27.38%, with several investment firms increasing their positions during the second quarter.

Ares Capital (NASDAQ:ARCC - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

Other research analysts have also recently issued research reports about the stock. Keefe, Bruyette & Woods reduced their price target on shares of Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a report on Thursday, July 30th. Wells Fargo & Company restated an "equal weight" rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ares Capital in a research report on Friday, September 4th. UBS Group upped their price target on Ares Capital from $19.00 to $21.00 and gave the stock a "neutral" rating in a research report on Tuesday, September 1st. Finally, JPMorgan Chase & Co. cut their price objective on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating on the stock in a research report on Thursday, July 2nd. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $20.60.

Ares Capital Stock Down 1.3%

Shares of Ares Capital stock opened at $19.40 on Friday. The company has a market capitalization of $13.93 billion, a P/E ratio of 14.37 and a beta of 0.57. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. The business has a 50-day moving average of $19.52 and a two-hundred day moving average of $18.89. Ares Capital has a 1 year low of $17.40 and a 1 year high of $21.64.

Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, meeting the consensus estimate of $0.47. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.The business had revenue of $768.00 million for the quarter, compared to analysts' expectations of $770.19 million. During the same quarter in the previous year, the business posted $0.50 EPS. As a group, equities analysts predict that Ares Capital will post 1.91 EPS for the current year.

Hedge Funds Weigh In On Ares Capital

Several institutional investors and hedge funds have recently modified their holdings of ARCC. MCF Advisors LLC increased its holdings in shares of Ares Capital by 12.4% during the second quarter. MCF Advisors LLC now owns 9,839 shares of the investment management company's stock worth $182,000 after purchasing an additional 1,082 shares during the period. Cidel Asset Management Inc. acquired a new position in Ares Capital during the second quarter valued at approximately $530,000. Integrated Wealth Concepts LLC lifted its stake in Ares Capital by 5.1% during the second quarter. Integrated Wealth Concepts LLC now owns 61,533 shares of the investment management company's stock worth $1,140,000 after purchasing an additional 3,012 shares during the last quarter. NewEdge Advisors LLC grew its position in Ares Capital by 33.5% in the second quarter. NewEdge Advisors LLC now owns 191,952 shares of the investment management company's stock valued at $3,557,000 after acquiring an additional 48,134 shares during the last quarter. Finally, Baird Financial Group Inc. raised its stake in Ares Capital by 8.0% during the second quarter. Baird Financial Group Inc. now owns 1,177,508 shares of the investment management company's stock worth $21,819,000 after acquiring an additional 87,353 shares in the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.

About Ares Capital

Ares Capital Corporation NASDAQ: ARCC is a business development company that provides financing to middle-market companies. The company invests primarily in privately originated loans and other debt investments, helping businesses fund acquisitions, recapitalizations, refinancings, growth initiatives and other corporate purposes.

Its investment portfolio generally includes senior secured loans, subordinated debt and mezzanine financing, along with selected equity investments. Ares Capital focuses on companies with established operations across a variety of industries and typically works with private equity sponsors, management teams and other financial partners.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of global alternative investment manager Ares Management Corporation.

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