Ares Capital Co. (NASDAQ:ARCC) Short Interest Update

Ares Capital Co. (NASDAQ:ARCC) was the target of a large decrease in short interest in the month of June. As of June 30th, there was short interest totalling 4,243,000 shares, a decrease of 15.5% from the May 30th total of 5,021,800 shares. Currently, 1.0% of the company’s shares are short sold. Based on an average daily volume of 1,580,000 shares, the days-to-cover ratio is presently 2.7 days.

A number of equities analysts have issued reports on the company. Zacks Investment Research cut Great Portland Estates from a “hold” rating to a “sell” rating in a report on Tuesday, April 16th. BidaskClub upgraded Zynerba Pharmaceuticals from a “hold” rating to a “buy” rating in a report on Thursday, July 4th. National Securities restated a “buy” rating and set a $20.00 price target on shares of Ares Capital in a report on Wednesday, May 1st. Finally, Wedbush set a $20.00 price target on Ares Capital and gave the stock a “buy” rating in a report on Tuesday, May 14th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and five have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $19.25.

Ares Capital stock opened at $18.15 on Friday. The company has a market cap of $7.75 billion, a PE ratio of 10.80 and a beta of 0.63. Ares Capital has a 52-week low of $14.50 and a 52-week high of $18.25. The stock’s 50 day simple moving average is $17.92. The company has a debt-to-equity ratio of 0.84, a current ratio of 2.47 and a quick ratio of 2.47.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Tuesday, April 30th. The investment management company reported $0.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.06. The firm had revenue of $373.00 million for the quarter, compared to analysts’ expectations of $337.96 million. Ares Capital had a return on equity of 10.12% and a net margin of 59.58%. During the same period in the prior year, the business earned $0.57 EPS. Sell-side analysts expect that Ares Capital will post 1.79 earnings per share for the current fiscal year.

The company also recently announced a special dividend, which will be paid on Monday, September 30th. Investors of record on Monday, September 16th will be issued a $0.02 dividend. This represents a dividend yield of 9.04%. The ex-dividend date of this dividend is Friday, September 13th. Ares Capital’s dividend payout ratio is currently 95.24%.

In other Ares Capital news, Director Steven B. Mckeever purchased 5,640 shares of the business’s stock in a transaction on Monday, May 13th. The shares were purchased at an average cost of $17.52 per share, for a total transaction of $98,812.80. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Daniel G. Kelly, Jr. purchased 4,500 shares of the business’s stock in a transaction on Monday, June 10th. The shares were acquired at an average price of $18.01 per share, for a total transaction of $81,045.00. The disclosure for this purchase can be found here. Insiders have acquired a total of 20,465 shares of company stock valued at $361,733 in the last three months. Insiders own 0.53% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the stock. Stephens Inc. AR lifted its holdings in shares of Ares Capital by 0.4% in the 1st quarter. Stephens Inc. AR now owns 161,135 shares of the investment management company’s stock worth $2,762,000 after purchasing an additional 565 shares in the last quarter. Nordea Investment Management AB lifted its holdings in shares of Ares Capital by 50.9% in the 1st quarter. Nordea Investment Management AB now owns 1,684 shares of the investment management company’s stock worth $29,000 after purchasing an additional 568 shares in the last quarter. Nwam LLC lifted its holdings in shares of Ares Capital by 4.2% in the 1st quarter. Nwam LLC now owns 19,461 shares of the investment management company’s stock worth $334,000 after purchasing an additional 780 shares in the last quarter. SeaBridge Investment Advisors LLC lifted its holdings in shares of Ares Capital by 0.6% in the 1st quarter. SeaBridge Investment Advisors LLC now owns 126,010 shares of the investment management company’s stock worth $2,160,000 after purchasing an additional 800 shares in the last quarter. Finally, DAVENPORT & Co LLC lifted its holdings in shares of Ares Capital by 0.6% in the 2nd quarter. DAVENPORT & Co LLC now owns 124,897 shares of the investment management company’s stock worth $2,241,000 after purchasing an additional 804 shares in the last quarter. Institutional investors own 37.58% 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: Fundamental Analysis and Individual Investors

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