Traders Buy High Volume of Ares Capital Corporation Call Options (NASDAQ:ARCC)

Ares Capital Corporation (NASDAQ:ARCC) saw some unusual options trading on Friday. Traders purchased 10,606 call options on the stock. This represents an increase of approximately Infinity compared to the typical daily volume of 0 call options.

Shares of Ares Capital Corporation (NASDAQ:ARCC) traded down $0.05 during mid-day trading on Wednesday, hitting $16.17. The stock had a trading volume of 1,405,300 shares, compared to its average volume of 2,083,655. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.66. Ares Capital Corporation has a twelve month low of $15.38 and a twelve month high of $17.87. The firm has a market cap of $6,890.00, a P/E ratio of 11.26, a price-to-earnings-growth ratio of 3.92 and a beta of 0.63.

Ares Capital Corporation (NASDAQ:ARCC) last issued its quarterly earnings results on Thursday, November 2nd. The investment management company reported $0.36 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.35 by $0.01. Ares Capital Corporation had a return on equity of 8.60% and a net margin of 45.78%. The firm had revenue of $294.00 million during the quarter, compared to analysts’ expectations of $295.02 million. During the same period in the previous year, the business earned $0.43 earnings per share. research analysts forecast that Ares Capital Corporation will post 1.38 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, December 29th. Investors of record on Friday, December 15th will be given a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 9.40%. The ex-dividend date is Thursday, December 14th. Ares Capital Corporation’s payout ratio is 120.63%.

In other Ares Capital Corporation news, Director Michael J. Arougheti purchased 8,365 shares of the company’s stock in a transaction dated Friday, November 3rd. The shares were acquired at an average price of $15.85 per share, for a total transaction of $132,585.25. Following the completion of the purchase, the director now owns 937,054 shares of the company’s stock, valued at $14,852,305.90. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders acquired 8,965 shares of company stock worth $142,283 in the last quarter. 0.45% of the stock is owned by insiders.

Large investors have recently modified their holdings of the business. Oppenheimer Asset Management Inc. grew its holdings in Ares Capital Corporation by 70.3% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 21,746 shares of the investment management company’s stock valued at $356,000 after buying an additional 8,974 shares in the last quarter. Alpha Windward LLC lifted its stake in Ares Capital Corporation by 4,144.7% during the 3rd quarter. Alpha Windward LLC now owns 29,925 shares of the investment management company’s stock worth $490,000 after acquiring an additional 29,220 shares in the last quarter. Summit X LLC lifted its stake in Ares Capital Corporation by 61.8% during the 3rd quarter. Summit X LLC now owns 19,270 shares of the investment management company’s stock worth $315,000 after acquiring an additional 7,360 shares in the last quarter. Elliott Management Corp acquired a new stake in Ares Capital Corporation in the 2nd quarter valued at about $18,343,000. Finally, Intl Fcstone Inc. acquired a new stake in Ares Capital Corporation in the 2nd quarter valued at about $1,084,000. Institutional investors own 44.76% of the company’s stock.

A number of research firms recently commented on ARCC. TheStreet downgraded Ares Capital Corporation from a “b” rating to a “c+” rating in a report on Monday. BidaskClub downgraded Ares Capital Corporation from a “sell” rating to a “strong sell” rating in a report on Tuesday, August 8th. Jefferies Group LLC reaffirmed a “buy” rating and set a $19.50 target price on shares of Ares Capital Corporation in a report on Friday, November 3rd. Zacks Investment Research downgraded Ares Capital Corporation from a “hold” rating to a “sell” rating in a report on Wednesday, August 2nd. Finally, National Securities reaffirmed a “buy” rating and set a $19.00 target price on shares of Ares Capital Corporation in a report on Monday, August 7th. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and eight have assigned a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus target price of $18.06.

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About Ares Capital Corporation

Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.

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