Raymond James Issues a Buy Rating on Ares Capital (ARCC)

In a report released today, Robert Dodd from Raymond James assigned a Buy rating to Ares Capital (ARCC), with a price target of $16.00. The company’s shares closed last Tuesday at $14.22.

According to TipRanks.com, Dodd is a 4-star analyst with an average return of 4.5% and a 65.2% success rate. Dodd covers the Financial sector, focusing on stocks such as Investcorp Credit Management BDC, Compass Diversified Holdings, and Fortress Transportation.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Ares Capital with a $16.05 average price target, which is a 13.1% upside from current levels. 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.