Short Interest in Ares Capital Co. (NASDAQ:ARCC) Declines By 10.6%

Ares Capital Co. (NASDAQ:ARCC) saw a large drop in short interest in November. As of November 15th, there was short interest totalling 15,590,000 shares, a drop of 10.6% from the October 31st total of 17,440,000 shares. Based on an average trading volume of 3,350,000 shares, the days-to-cover ratio is presently 4.7 days.

Ares Capital Stock Performance

NASDAQ:ARCC traded up $0.14 during mid-day trading on Monday, reaching $22.15. The company’s stock had a trading volume of 2,812,726 shares, compared to its average volume of 3,408,283. The firm’s fifty day moving average price is $21.38 and its two-hundred day moving average price is $21.07. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 1.06. The stock has a market cap of $14.31 billion, a P/E ratio of 8.52 and a beta of 1.01. Ares Capital has a 12-month low of $19.32 and a 12-month high of $22.21.

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

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 30th. Stockholders of record on Friday, December 13th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, December 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.67%. Ares Capital’s dividend payout ratio is currently 73.85%.

Hedge Funds Weigh In On Ares Capital

Institutional investors and hedge funds have recently modified their holdings of the stock. Jamison Private Wealth Management Inc. raised its position in Ares Capital by 62.7% in the 2nd quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock worth $26,000 after purchasing an additional 475 shares during the period. Asset Dedication LLC bought a new stake in shares of Ares Capital during the 2nd quarter worth approximately $26,000. Horizon Financial Services LLC purchased a new position in Ares Capital during the 3rd quarter valued at $28,000. Hobbs Group Advisors LLC bought a new position in Ares Capital in the 2nd quarter valued at $32,000. Finally, nVerses Capital LLC boosted its stake in shares of Ares Capital by 88.9% during the second quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company’s stock valued at $35,000 after purchasing an additional 800 shares during the period. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on ARCC shares. Royal Bank of Canada reaffirmed an “outperform” rating and set a $22.00 target price on shares of Ares Capital in a research note on Monday, August 5th. B. Riley raised their price objective on Ares Capital from $21.00 to $22.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Wells Fargo & Company raised Ares Capital from an “equal weight” rating to an “overweight” rating and set a $23.00 target price on the stock in a research note on Monday. StockNews.com upgraded shares of Ares Capital from a “sell” rating to a “hold” rating in a research note on Tuesday, November 12th. Finally, UBS Group raised shares of Ares Capital to a “hold” rating in a research report on Friday, August 23rd. Three research 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. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $22.29.

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.