Stock Worth Watching: American Capital Ltd.’s Trend Up, Especially After Today’s 52-Week High Milestone

Stock Worth Watching: American Capital Ltd.'s Trend Up, Especially After Today's 52 Week High Milestone

The stock of American Capital Ltd. (NASDAQ:ACAS) hit a new 52-week high and has $18.74 target or 8.00% above today’s $17.35 share price. The 8 months bullish chart indicates low risk for the $3.76B company. The 1-year high was reported on Nov, 25 by If the $18.74 price target is reached, the company will be worth $300.80 million more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 225,402 shares traded hands. American Capital Ltd. (NASDAQ:ACAS) has risen 9.47% since April 22, 2016 and is uptrending. It has outperformed by 4.06% the S&P500.

Analysts await American Capital Ltd. (NASDAQ:ACAS) to report earnings on February, 15. They expect $0.14 earnings per share, down 41.67% or $0.10 from last year’s $0.24 per share. ACAS’s profit will be $30.34M for 30.98 P/E if the $0.14 EPS becomes a reality. After $0.15 actual earnings per share reported by American Capital Ltd. for the previous quarter, Wall Street now forecasts -6.67% negative EPS growth.

American Capital Ltd. (NASDAQ:ACAS) Ratings Coverage

Out of 3 analysts covering American Capital (NASDAQ:ACAS), 2 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 67% are positive. $18 is the highest target while $15 is the lowest. The $16.25 average target is -6.34% below today’s ($17.35) stock price. American Capital has been the topic of 6 analyst reports since August 6, 2015 according to StockzIntelligence Inc. The firm has “Buy” rating given on Tuesday, December 8 by Compass Point. Zacks upgraded American Capital Ltd. (NASDAQ:ACAS) rating on Monday, August 10. Zacks has “Hold” rating and $15 price target. The stock of American Capital Ltd. (NASDAQ:ACAS) has “Hold” rating given on Thursday, August 6 by Cantor Fitzgerald. JP Morgan downgraded American Capital Ltd. (NASDAQ:ACAS) on Thursday, August 4 to “Neutral” rating. On Friday, November 6 the stock rating was upgraded by Cantor Fitzgerald to “Buy”.

According to Zacks Investment Research, “AMERICAN CAPITAL STRATEGIES LTD. is the only private equity fund and the largest alternative asset management company in the S&P 500. American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest chiefly in companies located in North America and Europe. As a publicly traded company, they offer shareholders an opportunity to invest in privately held middle market companies through ownership of their stock.”

Insitutional Activity: The institutional sentiment increased to 0.78 in Q2 2016. Its up 0.12, from 0.66 in 2016Q1. The ratio is positive, as 45 funds sold all American Capital Ltd. shares owned while 62 reduced positions. 35 funds bought stakes while 36 increased positions. They now own 120.07 million shares or 15.51% less from 142.12 million shares in 2016Q1.
Springbok Mngmt Limited Liability has 29,979 shares for 0.07% of their US portfolio. Westchester Capital Management Lc has invested 1.18% of its portfolio in American Capital Ltd. (NASDAQ:ACAS). Fsi Grp Ltd has 1.94% invested in the company for 200,000 shares. Perella Weinberg Partners Capital Mgmt L P accumulated 0.75% or 95,583 shares. Walleye Trading Lc last reported 178,542 shares in the company. The New York-based Seven Eight Limited Liability Company has invested 0.29% in American Capital Ltd. (NASDAQ:ACAS). Wolverine Asset Ltd Liability accumulated 0.01% or 30,000 shares. The Connecticut-based Westport Res has invested 0.03% in American Capital Ltd. (NASDAQ:ACAS). Moreover, Rivernorth Cap Mgmt Llc has 3.7% invested in American Capital Ltd. (NASDAQ:ACAS) for 3.61 million shares. The Arkansas-based Stephens Inc Ar has invested 0.02% in American Capital Ltd. (NASDAQ:ACAS). Quinn Opportunity Prtn Ltd Company owns 84,100 shares or 0.52% of their US portfolio. Gratia Cap Limited Company last reported 2.93% of its portfolio in the stock. Hap Trading Ltd Liability Corp holds 0.03% of its portfolio in American Capital Ltd. (NASDAQ:ACAS) for 36,827 shares. Fmr has invested 0% of its portfolio in American Capital Ltd. (NASDAQ:ACAS). West Family Invs has 0.11% invested in the company for 38,500 shares.

Insider Transactions: Since July 28, 2016, the stock had 0 insider buys, and 1 sale for $10,315 net activity. Lindsey Mark Wayne had sold 628 shares worth $10,315 on Thursday, July 28.

ACAS Company Profile

American Capital, Ltd. (American Capital), incorporated on February 10, 1986, is a global asset manager and private equity firm. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy and structured products. It primarily invests in senior and mezzanine debt and equity in buyouts of private companies sponsored by the Company (American Capital One Stop Buyouts) or sponsored by other private equity funds and provide capital directly to early-stage and mature private and small public companies (Sponsor Finance and Other Investments). It also invests in first and second lien floating rate loans to the United States companies (Senior Floating Rate Loans or SFRL) and structured finance investments (Structured Products), including collateralized loan obligation (CLO) securities and commercial mortgages, and commercial mortgage backed securities (CMBS).

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