Oppenheimer Assigns a Buy Rating on Ares Capital (ARCC)

Oppenheimer analyst Chris Kotowski assigned a Buy rating to Ares Capital (ARCC) today and set a price target of $16.00. The company’s shares closed last Tuesday at $14.22.

According to TipRanks.com, Kotowski is a 4-star analyst with an average return of 4.0% and a 57.4% success rate. Kotowski covers the Financial sector, focusing on stocks such as Apollo Global Management, JPMorgan Chase & Co., and New Mountain Finance.

Ares Capital has an analyst consensus of Strong Buy, with a price target consensus of $16.05, representing a 13.1% upside. In a report released today, Janney Montgomery also upgraded the stock to Buy with a $16.50 price target.

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Based on Ares Capital’s latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $333 million and net profit of $277 million. In comparison, last year the company earned revenue of $256 million and had a net profit of $200 million.

Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ARCC in relation to earlier this year.

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Ares Capital Corp. is a closed-end, non-diversified management investment company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company was founded on April 1, 2004 and is headquartered in New York, NY.