Ares Capital snaps its 6-day winning streak

Business development company Ares Capital (NASDAQ:ARCC) snapped its 6-day winning streak, losing 1.53% of its value to close at $19.99 Thursday after market hours.

The stock had gained 2.69% over the course of the last 6 trading days, with the highest gain recorded yesterday. ARCC closed 0.93% higher on Wednesday from its previous close.

Ares Capital is trading 2% above its 200-day simple moving average, but 1% below its 20-day simple moving average. The company is trading close to its 52-week high of $20.86. Short float on the stock stands at 4.84%.

Notably, peer Blue Owl Capital (OBDC) is also down today after 6 straight sessions of gain.

ARCC currently is appropriately valued from a stock price perspective, but is being close to being undervalued, according to Seeking Alpha author Scott Kennedy. Kennedy's current price target for the company is $22.20. The author rates OBDC as a Buy.

SA analysts grade the stock a Hold on average, while the Quant Rating system rates it as Buy. The sell-side analysts also give the stock a Buy rating, with an average price target of $21.63.

A lender to the middle-market companies, ARCC, went ex-dividend today. The company paid a quarterly dividend of $0.48 per share, in line with the previous quarters. The company had posted better-than-expected Q4 earnings as interest income from its investments bolstered its net investment income.