Ares Capital (NASDAQ:ARCC) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Ares Capital (NASDAQ:ARCC) had its target price upped by research analysts at Wells Fargo & Company from $23.00 to $24.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has an “overweight” rating on the investment management company’s stock. Wells Fargo & Company‘s price target suggests a potential upside of 2.32% from the stock’s current price.

ARCC has been the topic of a number of other reports. B. Riley raised their price target on shares of Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. StockNews.com raised shares of Ares Capital from a “sell” rating to a “hold” rating in a report on Tuesday, November 12th. Three investment analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $22.43.

Ares Capital Stock Performance

NASDAQ:ARCC traded down $0.09 during mid-day trading on Wednesday, hitting $23.46. The stock had a trading volume of 657,985 shares, compared to its average volume of 3,830,306. The company’s 50 day simple moving average is $22.19 and its 200 day simple moving average is $21.40. The stock has a market cap of $15.15 billion, a price-to-earnings ratio of 9.02 and a beta of 1.00. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.29 and a current ratio of 1.29. Ares Capital has a twelve month low of $19.32 and a twelve month high of $23.56.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Wednesday, October 30th. The investment management company reported $0.58 EPS for the quarter, missing the consensus estimate of $0.59 by ($0.01). Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The company had revenue of $755.00 million for the quarter, compared to the consensus estimate of $770.45 million. During the same period in the previous year, the firm posted $0.59 EPS. The business’s quarterly revenue was up 15.3% on a year-over-year basis. On average, equities research analysts forecast that Ares Capital will post 2.36 earnings per share for the current year.

Institutional Trading of Ares Capital

Hedge funds have recently added to or reduced their stakes in the stock. Franklin Resources Inc. lifted its stake in shares of Ares Capital by 24.3% in the 3rd quarter. Franklin Resources Inc. now owns 650,163 shares of the investment management company’s stock valued at $13,900,000 after acquiring an additional 127,219 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in Ares Capital by 4.6% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 885,406 shares of the investment management company’s stock valued at $18,540,000 after purchasing an additional 38,559 shares during the last quarter. CCLA Investment Management boosted its stake in shares of Ares Capital by 31.6% during the fourth quarter. CCLA Investment Management now owns 2,211,955 shares of the investment management company’s stock valued at $48,419,000 after purchasing an additional 531,305 shares in the last quarter. Romano Brothers AND Company grew its holdings in shares of Ares Capital by 11.2% during the fourth quarter. Romano Brothers AND Company now owns 354,237 shares of the investment management company’s stock worth $7,754,000 after purchasing an additional 35,659 shares during the last quarter. Finally, Confluence Investment Management LLC increased its stake in shares of Ares Capital by 1.7% in the third quarter. Confluence Investment Management LLC now owns 3,836,573 shares of the investment management company’s stock valued at $80,338,000 after buying an additional 63,999 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.