Ares Capital (NASDAQ:ARCC) Posts Quarterly Earnings Results, Hits Estimates

Ares Capital (NASDAQ:ARCC) posted its earnings results on Wednesday. The investment management company reported $0.50 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.50, FiscalAI reports. The firm had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. Ares Capital had a return on equity of 10.08% and a net margin of 45.16%.Ares Capital’s revenue was up 4.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.55 EPS.

Ares Capital Stock Performance

Shares of Ares Capital stock traded up $0.11 during trading on Wednesday, reaching $19.24. The company’s stock had a trading volume of 936,773 shares, compared to its average volume of 5,290,155. The business’s 50-day moving average price is $20.46 and its 200-day moving average price is $20.93. Ares Capital has a 52 week low of $18.26 and a 52 week high of $23.63. The company has a quick ratio of 2.20, a current ratio of 2.20 and a debt-to-equity ratio of 1.09. The firm has a market cap of $13.77 billion, a PE ratio of 9.62 and a beta of 0.59.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Citigroup restated a “market outperform” rating on shares of Ares Capital in a report on Thursday, October 30th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a research note on Monday, December 29th. Wells Fargo & Company lowered their price target on Ares Capital from $23.00 to $21.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 29th. Wall Street Zen upgraded shares of Ares Capital from a “sell” rating to a “hold” rating in a research note on Sunday, October 19th. Finally, Keefe, Bruyette & Woods dropped their price target on Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a research note on Wednesday, October 29th. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Ares Capital currently has a consensus rating of “Moderate Buy” and an average target price of $22.25.

Institutional Trading of Ares Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. SWAN Capital LLC purchased a new position in Ares Capital in the third quarter valued at about $27,000. Quarry LP purchased a new stake in shares of Ares Capital during the 3rd quarter valued at $33,000. WFA of San Diego LLC bought a new position in shares of Ares Capital during the 2nd quarter valued at about $36,000. Russell Investments Group Ltd. lifted its stake in shares of Ares Capital by 61.7% in the 3rd quarter. Russell Investments Group Ltd. now owns 3,853 shares of the investment management company’s stock valued at $79,000 after acquiring an additional 1,470 shares during the last quarter. Finally, Blue Chip Partners LLC bought a new position in shares of Ares Capital during the second quarter valued at about $204,000. 27.38% of the stock is owned by institutional investors.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.