JMP Securities Boosts Ares Capital (NASDAQ:ARCC) Price Target to $22.00

Ares Capital (NASDAQ:ARCC) had its price target raised by equities researchers at JMP Securities from $21.00 to $22.00 in a research note issued on Tuesday, Benzinga reports. The firm currently has a “market outperform” rating on the investment management company’s stock. JMP Securities’ target price suggests a potential upside of 4.51% from the stock’s previous close.

Several other equities research analysts have also recently weighed in on the stock. JPMorgan Chase & Co. boosted their price target on shares of Ares Capital from $21.50 to $22.00 and gave the stock an “overweight” rating in a research report on Thursday, May 2nd. Royal Bank of Canada reaffirmed an “outperform” rating and set a $22.00 price objective on shares of Ares Capital in a research note on Thursday, May 23rd. Truist Financial lifted their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a research note on Thursday, May 2nd. Finally, Oppenheimer increased their target price on shares of Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a report on Thursday, May 2nd. Three analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $21.71.

Ares Capital Price Performance

ARCC traded up $0.16 during trading hours on Tuesday, hitting $21.05. The company’s stock had a trading volume of 891,644 shares, compared to its average volume of 3,392,030. The business’s 50-day moving average price is $21.06 and its 200-day moving average price is $20.65. Ares Capital has a 12 month low of $18.55 and a 12 month high of $21.84. The stock has a market cap of $12.94 billion, a price-to-earnings ratio of 7.21 and a beta of 1.01. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 0.99.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Wednesday, May 1st. The investment management company reported $0.59 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.01). Ares Capital had a return on equity of 12.37% and a net margin of 62.77%. The business had revenue of $701.00 million during the quarter, compared to the consensus estimate of $703.85 million. During the same quarter in the prior year, the firm posted $0.56 EPS. The company’s revenue for the quarter was up 13.4% on a year-over-year basis. Sell-side analysts expect that Ares Capital will post 2.34 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ares Capital

A number of institutional investors have recently added to or reduced their stakes in the stock. Van ECK Associates Corp boosted its stake in Ares Capital by 17.4% during the 1st quarter. Van ECK Associates Corp now owns 9,719,943 shares of the investment management company’s stock worth $202,369,000 after purchasing an additional 1,437,864 shares during the last quarter. International Assets Investment Management LLC raised its holdings in shares of Ares Capital by 1,865.8% during the 4th quarter. International Assets Investment Management LLC now owns 4,214,991 shares of the investment management company’s stock worth $844,260,000 after acquiring an additional 4,000,570 shares during the period. Confluence Investment Management LLC purchased a new position in shares of Ares Capital during the 1st quarter worth $86,227,000. Advisors Capital Management LLC raised its holdings in shares of Ares Capital by 7.8% during the 1st quarter. Advisors Capital Management LLC now owns 3,099,134 shares of the investment management company’s stock worth $64,524,000 after acquiring an additional 223,245 shares during the period. Finally, Sound Income Strategies LLC raised its holdings in shares of Ares Capital by 3.8% during the 2nd quarter. Sound Income Strategies LLC now owns 2,138,203 shares of the investment management company’s stock worth $44,560,000 after acquiring an additional 78,140 shares during the period. Institutional investors and hedge funds own 27.38% 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.