JMP Securities Raises 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 brokerage currently has a “market outperform” rating on the investment management company’s stock. JMP Securities’ target price would suggest a potential upside of 4.51% from the stock’s current price.

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

Ares Capital Stock Performance

Ares Capital stock traded up $0.16 during trading hours on Tuesday, hitting $21.05. The stock had a trading volume of 891,644 shares, compared to its average volume of 3,392,030. The company has a 50-day moving average of $21.06 and a two-hundred day moving average of $20.65. The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 0.99. The company has a market cap of $12.94 billion, a PE ratio of 7.21 and a beta of 1.01. Ares Capital has a fifty-two week low of $18.55 and a fifty-two week high of $21.84.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, May 1st. The investment management company reported $0.59 EPS for the quarter, missing the consensus estimate of $0.60 by ($0.01). The company had revenue of $701.00 million for the quarter, compared to the consensus estimate of $703.85 million. Ares Capital had a return on equity of 12.37% and a net margin of 62.77%. Ares Capital’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same quarter last year, the business earned $0.56 EPS. On average, equities research analysts anticipate that Ares Capital will post 2.34 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jamison Private Wealth Management Inc. grew its stake in Ares Capital by 62.7% in the second quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock valued at $26,000 after acquiring an additional 475 shares during the period. Capital Investment Advisors LLC lifted its holdings in shares of Ares Capital by 1.6% in the second quarter. Capital Investment Advisors LLC now owns 32,691 shares of the investment management company’s stock valued at $681,000 after purchasing an additional 499 shares in the last quarter. Lewis Asset Management LLC lifted its holdings in shares of Ares Capital by 2.1% in the first quarter. Lewis Asset Management LLC now owns 24,805 shares of the investment management company’s stock valued at $516,000 after purchasing an additional 500 shares in the last quarter. Chapin Davis Inc. lifted its holdings in shares of Ares Capital by 2.2% in the first quarter. Chapin Davis Inc. now owns 22,966 shares of the investment management company’s stock valued at $478,000 after purchasing an additional 501 shares in the last quarter. Finally, Lincoln National Corp lifted its holdings in shares of Ares Capital by 3.0% in the fourth quarter. Lincoln National Corp now owns 17,665 shares of the investment management company’s stock valued at $354,000 after purchasing an additional 520 shares in the last quarter. 27.38% of the stock is owned by institutional investors and hedge funds.

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.