Why Compass Point Started Coverage On Ares Capital (NASDAQ:ARCC) Stock With “Buy” Rating

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London Ares Capital NASDAQ:ARCC

Ares Capital (NASDAQ:ARCC) Price Target & New Coverage by Compass Point

Compass Point revealed to clients in a recent note that it began coverage on Ares Capital (NASDAQ:ARCC) stock, with “Buy” rating and a $17.5 PT.

The initiation is well received by stock traders, as NASDAQ:ARCC is right now trading 0.38% higher at $15.83 as of 12:03 PM New York time. Ares Capital’s stock is 0% over the past 200 days. It has underperformed the Standard & Poor’s 500 index, which has gained 6.00% over the same time period.

According to data compiled by Thomson Reuters, Ares Capital (NASDAQ:ARCC)’s stock is covered by 15 equity analysts across the Street, with 0 analysts giving it a Sell rating, 12 a Buy rating, while 3 consider it a Hold. The 12-month consensus target price for the stock is $16.48, which reflects an upside potential of 4.11% over the current price.

Institutional Ownership

Muzinich & Co. Inc. had the largest stake with ownership of 3.61 million shares as of Q2 2015 for 14.38% of the US equity exposure. Greenwich Investment Management Inc. is another very bullish institutional investor who is possessing 483,607 shares of Ares Capital or 7.55% of their US equity exposure. Further, Raiff Partners Inc have 6.11% of their US equity exposure invested in the company for 300,000 shares. The Pennsylvania-based fund Penn Mutual Life Insurance Co disclosed it had purchased so far a stake worth about 5.77% of the institutional investor’s stock portfolio in Ares Capital. The Virginia-based fund Yorktown Management & Research Co Inc is also positive about the stock, possessing 509,000 shares or 5.7% of their US equity exposure.

Ares Capital (NASDAQ:ARCC) Profile

Ares Capital CorpAres Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments.

Ares Capital (NASDAQ:ARCC) traded up 0.38% on 6 December, hitting $15.83. A total of 538,241 shares of the company’s stock traded hands. This is down from average of 1.81 million shares. Ares Capital has a 52 week low of $15.01 and a 52 week high of $17.87. The company has a market cap of $6.75 billion and a P/E ratio of 12.3.

Get the latest Ares Capital (NASDAQ:ARCC) Stock Ratings at Octafinance. Completely free access to our Analyst Ratings Database for 6000+ stocks.

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