Ares Capital Co. (NASDAQ:ARCC) Short Interest Update

Ares Capital Co. (NASDAQ:ARCC - Get Free Report) experienced a notable rise in short interest during the month of November. As of November 30th, the total short interest reached 17,310,000 shares, marking an increase of 11.0% from the prior total of 15,590,000 shares reported on November 15th. With an average trading volume of 3,490,000 shares, the current short-interest ratio stands at 5.0 days.

Ares Capital Stock Performance

On Friday, shares of NASDAQ ARCC opened at $21.69. The stock has seen fluctuations with a 12-month low of $19.32 and a 12-month high of $22.43. The company holds a market capitalization of $14.01 billion, a PE ratio of 8.34, and a beta of 1.01. Current ratios stand at 1.29 for both current and quick ratios, with a debt-to-equity ratio of 1.06. Additionally, Ares Capital has a 50-day moving average of $21.64 and a 200-day moving average of $21.13.

Earnings Report

Ares Capital (NASDAQ:ARCC - Get Free Report) released its latest quarterly earnings on October 30th. The investment management company reported earnings per share (EPS) of $0.58, slightly below the consensus expectation of $0.59, falling short by $0.01. The firm posted a net margin of 53.71% and a return on equity of 12.06%. Revenue for the quarter was recorded at $755.00 million, lower than the analysts' forecast of $770.45 million. In the same quarter of the previous year, the company reported an EPS of $0.59, reflecting a year-over-year revenue growth of 15.3%. Analysts predict that Ares Capital will achieve an EPS of 2.36 for the current fiscal year.

Dividend Announcement

Additionally, Ares Capital has announced a quarterly dividend to be paid on December 30th. Shareholders who are on record by December 13th will receive a dividend payment of $0.48. This dividend translates to an annualized amount of $1.92, equating to a yield of 8.85%. The payout ratio for Ares Capital stands at 73.85%.

Analyst Ratings Updates

Various research analysts have recently reviewed Ares Capital stock. Wells Fargo upgraded shares from an "equal weight" to an "overweight" rating in a report issued on Thursday. StockNews.com raised its rating from "sell" to "hold" on November 12th. B. Riley adjusted its target price from $21.00 to $22.00, maintaining a "neutral" rating on October 31st. UBS Group also upgraded their rating to "hold" on August 23rd. Currently, three analysts rate the stock as a hold, six as a buy, and one as a strong buy. According to MarketBeat, Ares Capital holds an average rating of "Moderate Buy" with a consensus price target of $22.29.

Hedge Fund Activity

Institutional investors and hedge funds have recently adjusted their positions regarding Ares Capital. Asset Dedication LLC purchased a new stake in the company valued at approximately $26,000 during the second quarter. Horizon Financial Services LLC similarly acquired a new position worth around $28,000 in the third quarter. Other notable purchases include Hobbs Group Advisors LLC, nVerses Capital LLC, and Ridgewood Investments LLC, reflecting a growing interest among institutional investors. Currently, 27.38% of Ares Capital stock is held by these investors.

About Ares Capital

Ares Capital Corporation is a business development company that focuses on a variety of financial activities, including acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyouts targeting middle-market companies. The company is also engaged in providing growth capital and general refinancing, favoring investments in sectors such as manufacturing, business services, consumer products, healthcare, and information technology services.

Ares, Capital, Stocks