Ares Capital Co. (NASDAQ:ARCC) Sees Large Decrease in Short Interest

Ares Capital Co. (NASDAQ:ARCCGet Rating) was the target of a significant decrease in short interest in the month of August. As of August 15th, there was short interest totalling 17,850,000 shares, a decrease of 7.7% from the July 31st total of 19,340,000 shares. Based on an average trading volume of 2,890,000 shares, the days-to-cover ratio is currently 6.2 days.

Insider Activity

In other news, EVP Michael J. Arougheti bought 300,000 shares of Ares Capital stock in a transaction dated Tuesday, June 14th. The shares were acquired at an average price of $17.75 per share, with a total value of $5,325,000.00. Following the completion of the purchase, the executive vice president now owns 1,782,709 shares in the company, valued at approximately $31,643,084.75. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. In related news, Director Steven B. Mckeever purchased 2,775 shares of the business’s stock in a transaction dated Wednesday, June 15th. The shares were purchased at an average cost of $17.95 per share, for a total transaction of $49,811.25. Following the completion of the acquisition, the director now owns 44,944 shares in the company, valued at approximately $806,744.80. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Michael J. Arougheti purchased 300,000 shares of the business’s stock in a transaction dated Tuesday, June 14th. The stock was bought at an average price of $17.75 per share, for a total transaction of $5,325,000.00. Following the completion of the acquisition, the executive vice president now owns 1,782,709 shares of the company’s stock, valued at approximately $31,643,084.75. The disclosure for this purchase can be found here. Over the last quarter, insiders have bought 327,775 shares of company stock valued at $5,869,061. 0.59% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Ares Capital

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sierra Capital LLC raised its position in shares of Ares Capital by 0.3% in the 4th quarter. Sierra Capital LLC now owns 159,812 shares of the investment management company’s stock valued at $3,386,000 after purchasing an additional 493 shares during the last quarter. Indie Asset Partners LLC raised its position in shares of Ares Capital by 4.1% in the 4th quarter. Indie Asset Partners LLC now owns 12,895 shares of the investment management company’s stock valued at $273,000 after purchasing an additional 510 shares during the last quarter. Cutter & CO Brokerage Inc. raised its position in shares of Ares Capital by 0.9% in the 2nd quarter. Cutter & CO Brokerage Inc. now owns 65,111 shares of the investment management company’s stock valued at $1,167,000 after purchasing an additional 559 shares during the last quarter. Private Wealth Strategies L.L.C. raised its position in shares of Ares Capital by 2.1% in the 1st quarter. Private Wealth Strategies L.L.C. now owns 27,105 shares of the investment management company’s stock valued at $568,000 after purchasing an additional 568 shares during the last quarter. Finally, Merriman Wealth Management LLC raised its position in shares of Ares Capital by 2.4% in the 2nd quarter. Merriman Wealth Management LLC now owns 25,417 shares of the investment management company’s stock valued at $456,000 after purchasing an additional 588 shares during the last quarter. 33.79% of the stock is owned by hedge funds and other institutional investors.

Ares Capital Price Performance

NASDAQ:ARCC opened at $19.30 on Friday. Ares Capital has a fifty-two week low of $17.03 and a fifty-two week high of $23.00. The stock has a market capitalization of $9.58 billion, a P/E ratio of 8.73 and a beta of 0.99. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.80 and a current ratio of 0.80. The company’s 50-day simple moving average is $19.51 and its 200-day simple moving average is $20.01.

Ares Capital (NASDAQ:ARCCGet Rating) last released its quarterly earnings results on Tuesday, July 26th. The investment management company reported $0.46 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.02. Ares Capital had a net margin of 54.92% and a return on equity of 10.15%. During the same period in the previous year, the company posted $0.53 EPS. On average, equities analysts anticipate that Ares Capital will post 1.91 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have recently commented on ARCC. Oppenheimer cut their price target on shares of Ares Capital to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, July 27th. StockNews.com upgraded shares of Ares Capital from a “sell” rating to a “hold” rating in a report on Thursday, July 28th. JMP Securities dropped their target price on shares of Ares Capital from $24.00 to $22.00 and set a “market outperform” rating on the stock in a report on Thursday, July 28th. Hovde Group dropped their target price on shares of Ares Capital to $19.00 in a report on Friday, May 20th. Finally, TheStreet cut shares of Ares Capital from a “b-” rating to a “c+” rating in a report on Monday, May 23rd. One research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat, Ares Capital presently has an average rating of “Moderate Buy” and an average target price of $21.88.

About Ares Capital

(Get Rating)

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.

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