Ares Capital stock traders are buying a large number of put options (NASDAQ:ARCC)
Ares Capital Company (NASDAQ:ARCC) options trading saw an extremely high volume of trading activity on Wednesday due to the firm’s popularity. As a result, market participants purchased 20,004 put options relating to the company. This represents a 181% increase from the typical volume of 7,122 put options.
Ares Capital’s (NASDAQ:ARCC) latest quarterly earnings report was released on October 25, which is a Tuesday. The investment management company’s quarterly earnings per share (EPS) came in at $0.50, $0.01 above the average forecast of $0.49. Earnings were reported on a per share basis. Ares Capital achieved a return on equity of 10.15% while maintaining a net margin of 54.92%. The company reported earnings of $0.47 per share in the same period last year compared to the current year. The majority opinion of professionals in the relevant field is that each share of Ares Capital will earn $1.94 in 2018.
On Wednesday, the price of the NASDAQ ARCC rose $0.43, taking it to $19.48. The total number of shares traded by the company was 100,700, significantly lower than the daily volume of 2,830,184 shares. The moving average price of the stock over the past 200 days is $19.26, while the moving average price of the stock over the past 50 days is $18.74. The company’s stock has an earnings to price ratio that currently sits at 8.62, and its beta currently sits at 1.03, giving it a market value that currently sits at $9.67 billion. There is a debt ratio of 1.26, a quick ratio of 0.80 and a current ratio of 0.80. Each of these ratios is also equal to the other. Ares Capital hit a 52-week high of $23.00 and a 52-week low of $16.53 during the time period covered by this report.
Several equity research analysts have written recent reports on the company. These studies focus on more recent events. On October 12, a Wednesday, StockNews.com’s reporting was expanded to include Ares Capital, and they advised clients to “sell” the company’s stock. According to Hovde Group’s announcement, Ares Capital will now have a price target of $19.00, which was made public in a research note published on October 5 and available online. In a research report released Thursday, July 28, JMP Securities lowered its price target on Ares Capital from $24.00 to $22.00. Additionally, they lowered their “market outperforming” rating to the “market outperforming” company. Ares Capital now has an “underperforming” rating from Raymond James, and the investment firm has lowered its price target for the company from $21.00 to $20.50. A research note published on Wednesday brought both of these changes to the general public for the first time. Oppenheimer gave Ares Capital an “outperforming” rating in a research report released Wednesday, July 27. However, the report said the brokerage had lowered its price target on the stock to $21.00. This was the final and most important change that took place. The majority of financial analysts who reviewed the company advised investors to buy shares in it, and only one advised investors to sell. According to Bloomberg, the company’s current consensus rating is “Moderate Buy” and the current consensus price target for the company’s stock is $21.06 per share. Both of these figures are based on the opinions of market participants.
Additionally, the company recently announced that it will implement a quarterly dividend, which is due to be paid on December 29. On Friday, December 16, shareholders of record on Thursday, December 15 will be eligible to receive a dividend payment of $0.48 per share. Ares Capital increased the dollars and forty-two cents ($0.42) it has always paid out as a quarterly dividend. Therefore, the dividend yield is calculated at 9.86% and the annual dividend is calculated at $1.92. Currently, Ares Capital Corporation has a dividend payout ratio of 77.83%.
Penelope F. Roll, CFO, purchased 25,000 shares of the company on August 3, which is another relevant event for this discussion. The cost to purchase all shares was $494,250.00, which equates to $19.77 for each individual share. As a result of the transaction, the company’s chief financial officer now owns 52,000 common shares of the company. The price at which these shares are currently trading in the market gives them an approximate value of $1,028,040. By clicking on the link, which will take you to a document filed with the Securities and Exchange Commission, you will have the opportunity to obtain additional information regarding the acquisition. Penelope F. Roll, chief financial officer of Ares Capital, bought 2,500 shares of the company on September 14, another recent development involving the investment firm. It was purchased for $47,000.00 worth of shares, which works out to an average price of $19.04 per share. As a result of the transaction, the CFO now directly owns 54,500 shares of the company. Based on the current stock price, these shares are worth approximately $1,037,680. When you follow this link, you will be redirected to the SEC filing which contains more information about the acquisition. Additionally, on August 3, the company’s chief financial officer, Penelope F. Roll, made an additional purchase of 25,000 shares of the company. The cost to purchase all the shares was a total of $494,250.00, with each share costing an average of $19.77. After the transaction was completed, the CFO now has direct control over 52,000 shares of the company. These shares have a value of approximately $1,028,040. You should visit this location if you are looking for disclosure related to this transaction. The total number of shares of the company are held by insiders, holding 0.59% of these shares.