Short Interest in Ares Capital Co. (NASDAQ:ARCC) Rises By 5.2%

Ares Capital Co. (NASDAQ:ARCC) saw a large increase in short interest in the month of October. As of October 31st, there was short interest totalling 17,440,000 shares, an increase of 5.2% from the October 15th total of 16,580,000 shares. Based on an average daily volume of 3,140,000 shares, the days-to-cover ratio is presently 5.6 days.

Ares Capital Stock Performance

NASDAQ ARCC opened at $21.83 on Wednesday. Ares Capital has a 52-week low of $19.32 and a 52-week high of $22.05. The company has a fifty day moving average of $21.14 and a 200-day moving average of $21.02. The company has a market capitalization of $14.10 billion, a P/E ratio of 8.40 and a beta of 1.01. 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 (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by ($0.01). The firm had revenue of $755.00 million for the quarter, compared to the consensus estimate of $770.45 million. Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The company’s revenue for the quarter was up 15.3% on a year-over-year basis. During the same period last year, the firm earned $0.59 EPS. As a group, equities research analysts predict that Ares Capital will post 2.36 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Stockholders of record on Friday, December 13th will be paid a $0.48 dividend. The ex-dividend date is Friday, December 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.80%. Ares Capital’s dividend payout ratio (DPR) is 73.85%.

Wall Street Analyst Weigh In

Several research analysts have commented on ARCC shares. StockNews.com upgraded Ares Capital from a “sell” rating to a “hold” rating in a research note on Tuesday, November 12th. 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 Monday, August 5th. JMP Securities increased their target price on shares of Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a research note on Tuesday, July 30th. UBS Group raised shares of Ares Capital to a “hold” rating in a report on Friday, August 23rd. Finally, B. Riley increased their price objective on Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Four research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $21.86.

Hedge Funds Weigh In On Ares Capital

Several institutional investors and hedge funds have recently made changes to their positions in ARCC. Jamison Private Wealth Management Inc. boosted its position in Ares Capital by 62.7% during 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 buying an additional 475 shares during the period. Asset Dedication LLC bought a new position in Ares Capital during the 2nd quarter worth approximately $26,000. Horizon Financial Services LLC purchased a new position in Ares Capital in the 3rd quarter worth approximately $28,000. Hobbs Group Advisors LLC bought a new stake in Ares Capital in the second quarter valued at approximately $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. Institutional investors 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.