Stock traders buy large volume of put options on Ares Capital (NASDAQ:ARCC)

Ares Capital Co. (NASDAQ:ARCC – Get Rating) saw unusually heavy options trading activity on Tuesday. Traders bought 10,397 put options on the company. This is a 58% increase from the average daily volume of 6,597 puts.

Ares Capital Price Performance

ARCC stock traded down $0.12 during Tuesday’s trading, hitting $19.18. 46,286 shares of the company were traded, compared to its average volume of 1,991,622. Ares Capital has a 52-week low of $17.03 and a 52-week high of $23.00. The company has a debt ratio of 1.26, a quick ratio of 0.80 and a current ratio of 0.80. The company has a fifty-day simple moving average of $19.51 and a 200-day simple moving average of $20.01. The stock has a market capitalization of $9.52 billion, a price-earnings ratio of 8.64 and a beta of 0.97.

Ares Capital (NASDAQ:ARCC – Get Rating) last released its results on Tuesday July 26th. The investment management firm reported earnings per share (EPS) of $0.46 for the quarter, beating the consensus estimate of $0.44 by $0.02. Ares Capital had a net margin of 54.92% and a return on equity of 10.15%. During the same period last year, the company posted earnings per share of $0.53. As a group, research analysts expect Ares Capital to post EPS of 1.93 for the current fiscal year.

Insider Trading at Ares Capital

A d Investment trends

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Separately, Executive Vice President Michael J. Arougheti acquired 300,000 shares of the company in a transaction dated Tuesday, June 14. The stock was purchased at an average cost of $17.75 per share, with a total value of $5,325,000.00. Following the acquisition, the executive vice president now owns 1,782,709 shares of the company, valued at approximately $31,643,084.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, accessible via the SEC’s website. In other Ares Capital news, Executive Vice President Michael J. Arougheti purchased 300,000 shares of the company in a transaction that took place on Tuesday, June 14. The shares were purchased at an average price of $17.75 per share, for a total transaction of $5,325,000.00. Following the transaction, the executive vice president now directly owns 1,782,709 shares of the company, valued at $31,643,084.75. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available on the SEC’s website. Additionally, director Steven B. Mckeever purchased 2,775 shares of the company in a transaction that took place on Wednesday, June 15. The stock was acquired at an average price of $17.95 per share, for a total transaction of $49,811.25. Following the transaction, the administrator now owns 44,944 shares of the company, valued at $806,744.80. Disclosure of this purchase can be found here. Over the past ninety days, insiders have purchased 327,775 shares of the company valued at $5,869,061. Insiders own 0.59% of the shares of the company.

Institutional entries and exits

Several institutional investors have recently increased or reduced their stake in the stock. Wagner Wealth Management LLC bought a new position in Ares Capital during Q2 worth approximately $27,000. Financial Management Professionals Inc. increased its position in Ares Capital by 70.7% during the 1st quarter. Financial Management Professionals Inc. now owns 1,775 shares of the investment management company valued at $37,000 after purchasing an additional 735 shares during the period. Hardy Reed LLC bought a new position in Ares Capital during Q1 worth approximately $42,000. Larson Financial Group LLC increased its position in Ares Capital by 1,098.9% during the 2nd quarter. Larson Financial Group LLC now owns 2,098 shares of the investment management firm valued at $38,000 after purchasing an additional 1,923 shares during the period. Finally, Western Pacific Wealth Management LP bought a new position in Ares Capital during Q4, valued at around $47,000. Hedge funds and other institutional investors own 33.79% of the company’s shares.

Analyst upgrades and downgrades

Several equity analysts have recently published reports on ARCC shares. TheStreet upgraded Ares Capital shares from a “b-” to a “c+” rating in a Monday, May 23 research report. JMP Securities lowered its price target on Ares Capital shares from $24.00 to $22.00 and set a “market outperformance” rating on the stock in a Thursday, July 28 research note. StockNews.com upgraded Ares Capital shares from a “sell” rating to a “hold” rating in a Thursday, July 28 research note. Oppenheimer lowered his price target on Ares Capital stock to $21.00 and set an “outperform” rating on the stock in a Wednesday, July 27 research note. Finally, Hovde Group lowered its target price on Ares Capital shares to $19.00 in a Friday May 20 research note. One equity research analyst gave the stock a hold rating and eight gave the company’s stock a buy rating. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $21.88.

Ares Capital Company Profile

(Get a rating)

Ares Capital Corporation is a business development firm specializing in the acquisition, recapitalization, mezzanine debt, restructurings, rescue financing and leveraged buyout transactions of middle market companies. He also does growth capital and general refinancing. He prefers to invest in companies active in basic and growth manufacturing, business services, consumer products, healthcare products and services, and information technology services.

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