Stock Traders Purchase Large Volume of Put Options on Ares Capital (ARCC)

Ares Capital Co. (NASDAQ:ARCC) was the target of some unusual options trading activity on Thursday. Investors purchased 8,843 put options on the company. This is an increase of 1,517% compared to the average daily volume of 547 put options.

In related news, CFO Penelope F. Roll sold 6,000 shares of the firm’s stock in a transaction on Tuesday, November 20th. The shares were sold at an average price of $16.76, for a total value of $100,560.00. Following the completion of the transaction, the chief financial officer now directly owns 11,147 shares of the company’s stock, valued at $186,823.72. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Eric B. Siegel bought 6,990 shares of the business’s stock in a transaction that occurred on Wednesday, September 12th. The stock was acquired at an average cost of $17.30 per share, with a total value of $120,927.00. Following the completion of the acquisition, the director now owns 36,630 shares of the company’s stock, valued at approximately $633,699. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 7,590 shares of company stock valued at $131,039. Insiders own 0.49% of the company’s stock.

A number of institutional investors and hedge funds have recently modified their holdings of ARCC. Baker Ellis Asset Management LLC bought a new stake in Ares Capital in the third quarter worth $138,000. Rehmann Capital Advisory Group lifted its position in Ares Capital by 43.5% in the second quarter. Rehmann Capital Advisory Group now owns 9,658 shares of the investment management company’s stock worth $159,000 after buying an additional 2,930 shares during the last quarter. grace capital bought a new stake in Ares Capital in the second quarter worth $165,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in Ares Capital in the second quarter worth $174,000. Finally, McKinley Carter Wealth Services Inc. bought a new stake in Ares Capital in the third quarter worth $175,000. Institutional investors own 39.45% of the company’s stock.

ARCC has been the subject of a number of recent research reports. Zacks Investment Research raised shares of Ares Capital from a “hold” rating to a “buy” rating and set a $19.00 target price for the company in a report on Thursday, November 15th. BidaskClub raised shares of Ares Capital from a “hold” rating to a “buy” rating in a report on Tuesday, November 13th. Oppenheimer set a $18.00 target price on shares of Ares Capital and gave the company a “buy” rating in a report on Thursday, November 1st. National Securities reissued a “buy” rating and issued a $19.00 target price on shares of Ares Capital in a report on Thursday, November 1st. Finally, Citigroup initiated coverage on shares of Ares Capital in a report on Thursday, August 23rd. They issued a “buy” rating and a $19.00 target price for the company. Two investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $18.42.

ARCC stock opened at $16.71 on Friday. Ares Capital has a fifty-two week low of $15.03 and a fifty-two week high of $17.63. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $7.21 billion, a P/E ratio of 12.02, a price-to-earnings-growth ratio of 3.46 and a beta of 0.58.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, October 31st. The investment management company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $342.00 million during the quarter, compared to the consensus estimate of $320.15 million. Ares Capital had a return on equity of 9.34% and a net margin of 72.13%. Ares Capital’s revenue was up 16.3% on a year-over-year basis. During the same period last year, the company earned $0.36 earnings per share. Analysts predict that Ares Capital will post 1.63 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, December 28th. Investors of record on Friday, December 14th will be given a $0.39 dividend. The ex-dividend date of this dividend is Thursday, December 13th. This represents a $1.56 dividend on an annualized basis and a yield of 9.34%. Ares Capital’s dividend payout ratio is presently 112.23%.

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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.

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