Ann Torre Bates, a director at Ares Capital Corp (NASDAQ:ARCC), acquired 6,000 shares of the company’s common stock on February 11, according to a recent SEC filing. The shares were purchased at a price of $22.75 each, totaling approximately $136,500. Following this transaction, Bates directly owns 30,000 shares of Ares Capital, with an additional 8,000 shares held indirectly by her spouse. According to InvestingPro, analysts maintain a bullish stance on ARCC with price targets ranging from $22 to $26, and the company maintains a "GOOD" overall financial health score.
In other recent news, Ares Capital Corporation has seen several significant developments. Raymond (NSE:RYMD) James has adjusted its rating for Ares Capital from Outperform to Market Perform, based on the stock’s valuation. Despite the downgrade, the corporation’s robust credit quality and sustainable dividend were acknowledged, reflecting an attractive risk/reward profile.
In addition, Ares Capital has issued $1 billion in senior notes due 2032. The proceeds from this issuance are intended to repay existing debt under the company’s credit facilities, possibly allowing for reborrowing for general corporate purposes. The notes, unsecured and ranking pari passu with other unsecured and unsubordinated indebtedness, adhere to certain asset coverage requirements.
Keefe, Bruyette & Woods has maintained a positive stance on Ares Capital, reasserting an Outperform rating. The investment firm highlighted the corporation’s low leverage and its at-the-market equity program as strategic advantages. The firm’s dividend coverage is projected to be robust, potentially allowing for the distribution of special dividends.
Ares Capital has also amended its financing arrangement with Sumitomo Mitsui (NYSE:SMFG) Banking Corporation. The amendment includes an extension of the reinvestment period and the maturity date of the facility, along with a reduction in the interest rate charged.
Finally, Wells Fargo (NYSE:WFC) upgraded shares of Ares Capital from Equal Weight to Overweight, reflecting a positive outlook on the company’s consistent credit performance. The new price target is based on a 10% yield on forward net operating income, assuming a continued benign credit trajectory and the company’s ability to utilize balance sheet leverage.
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