[Zacks] American Capital Ltd (NASDAQ:ACAS)(TREND ANALYSIS) announced the repurchase of its common stock worth $134.6 million. The company repurchased a total of 9.7 million shares of its common stock at an average price of $13.82 per share. Number of shares repurchased represent 3.6% of the company’s outstanding shares of common stock as of Jun 30, 2015.
Beginning in the third quarter of 2015, American Capital’s board of directors changed its share repurchase program. Under the new program, $300 million to $600 million of common stock will be bought at price per share below 85% of the company’s most recent quarterly net asset value per share, subject to some conditions. Notably, the repurchases will be made before the spin-off of American Capital Income by the company.
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American Capital Ltd (NASDAQ:ACAS) stock is currently trading 20.68% below its 52-week-high, 7.13% above its 52-week-low. The 1-year stock price history is in the range of $11.92 – $16.1. American Capital Ltd (ACAS) has a price to earnings ratio of 15.61 versus Financial sector average of 16.17. ACAS stock price has underperformed the Nasdaq by 22.1%. The Investment company is currently valued at $3.42 billion and its share price closed the last trading session at $12.77. The stock has a 50-day moving average of $12.75 and a 200-day moving average of $13.73.
American Capital Ltd (ACAS) current short interest stands at 3.76 million shares. It has increased by 7% from the same period of last month. Around 2% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.33 million shares, the number of days required to cover the short positions stand at 1.7 days.
The company is expected to announce this quarter earnings on November 04, at consensus estimate of $0.27. American Capital Ltd (ACAS) reported last quarter earnings on August 05. The Investment company announced earnings per share of $0.24 against a consensus Street estimate of $0.23, beating the average estimate by $0.01. This corresponds to an increase of $0.14 compared to the same quarter of the previous fiscal year.
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There are currently six analysts that cover American Capital Ltd stock. Of those six, three have a Buy rating, three have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $17.5.
A recent analyst activity consisted of Cantor Fitzgerald who initiated their coverage on the stock with Hold rating on July 1. Cantor Fitzgerald fixed their price target at $16. This corresponds to a 25.29% upside from the last closing price. On the date of report, the stock closed at $13.49.
JP Morgan reiterated their Overweight stance on May 8, and decreased their price target from $19.5 to $18.5. This corresponds to a 44.87% upside from the last closing price. On the date of report, the stock closed at $14.51.
Another research firm was Keefe Bruyette& Woods who reiterated their Market Perform stance on May 7. Keefe Bruyette& Woods decreased price target from $18 to $17.5. This translates to a 37.04% upside from the last closing price. On the date of report, the stock closed at $14.49.
American Capital Ltd. is an alternative asset manager. The Company, directly and through its global asset management business, invests in employee and management buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides debt and equity to fund growth, acquisitions, recapitalizations, and securitizations.