Traders Purchase Large Volume of Ares Capital Put Options (NASDAQ:ARCC)
by Renee Jackson · The Cerbat GemAres Capital Corporation (NASDAQ:ARCC – Get Free Report) was the target of some unusual options trading activity on Tuesday. Traders acquired 21,338 put options on the company. This represents an increase of approximately 315% compared to the average volume of 5,139 put options.
Wall Street Analyst Weigh In
A number of equities research analysts have recently commented on the company. Royal Bank Of Canada dropped their target price on Ares Capital from $24.00 to $23.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 29th. Wells Fargo & Company cut their target price on Ares Capital from $23.00 to $21.00 and set an “overweight” rating for the company in a research note on Wednesday, October 29th. UBS Group lowered their price target on Ares Capital from $22.50 to $21.00 and set a “neutral” rating for the company in a report on Tuesday, October 14th. JPMorgan Chase & Co. dropped their target price on shares of Ares Capital from $23.00 to $22.00 and set an “overweight” rating for the company in a report on Wednesday, October 1st. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Ares Capital in a research note on Monday. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $22.25.
Read Our Latest Analysis on ARCC
Ares Capital Price Performance
Shares of ARCC traded up $0.12 during trading hours on Tuesday, reaching $20.29. 5,891,337 shares of the company traded hands, compared to its average volume of 4,705,671. The stock has a market capitalization of $14.52 billion, a PE ratio of 10.14 and a beta of 0.59. The company has a quick ratio of 2.20, a current ratio of 2.20 and a debt-to-equity ratio of 1.09. Ares Capital has a fifty-two week low of $18.26 and a fifty-two week high of $23.84. The stock has a fifty day simple moving average of $20.29 and a 200 day simple moving average of $21.25.
Ares Capital (NASDAQ:ARCC – Get Free Report) last released its earnings results on Tuesday, October 28th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.50. The firm had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $766.48 million. Ares Capital had a net margin of 45.16% and a return on equity of 10.08%. Ares Capital’s revenue was up .9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.58 earnings per share. As a group, research analysts predict that Ares Capital will post 2.19 EPS for the current fiscal year.
Ares Capital Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th will be paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 9.5%. The ex-dividend date is Monday, December 15th. Ares Capital’s dividend payout ratio (DPR) is 96.00%.
Insider Transactions at Ares Capital
In related news, CEO Michael Kort Schnabel purchased 13,000 shares of the business’s stock in a transaction dated Friday, October 31st. The shares were purchased at an average cost of $20.39 per share, for a total transaction of $265,070.00. Following the completion of the acquisition, the chief executive officer owned 28,000 shares in the company, valued at approximately $570,920. This trade represents a 86.67% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.48% of the stock is currently owned by insiders.
Institutional Trading of Ares Capital
Institutional investors and hedge funds have recently modified their holdings of the business. Aurora Private Wealth Inc. grew its position in Ares Capital by 1.5% in the 2nd quarter. Aurora Private Wealth Inc. now owns 28,983 shares of the investment management company’s stock worth $636,000 after purchasing an additional 436 shares during the last quarter. Community Trust & Investment Co. lifted its holdings in shares of Ares Capital by 0.3% during the second quarter. Community Trust & Investment Co. now owns 150,072 shares of the investment management company’s stock valued at $3,296,000 after purchasing an additional 454 shares during the last quarter. Prostatis Group LLC boosted its holdings in shares of Ares Capital by 2.1% in the first quarter. Prostatis Group LLC now owns 21,768 shares of the investment management company’s stock worth $482,000 after buying an additional 457 shares during the period. Fountainhead AM LLC raised its stake in Ares Capital by 5.5% during the 2nd quarter. Fountainhead AM LLC now owns 9,728 shares of the investment management company’s stock valued at $214,000 after purchasing an additional 511 shares during the period. Finally, Fiduciary Alliance LLC increased its holdings in shares of Ares Capital by 3.1% in the 2nd quarter. Fiduciary Alliance LLC now owns 17,236 shares of the investment management company’s stock valued at $379,000 after purchasing an additional 516 shares during the period. 27.38% of the stock is owned by institutional investors and hedge funds.
About Ares Capital
Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.
Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.