Ares Capital (NASDAQ:ARCC) Reaches New 12-Month Low – Here’s What Happened

Ares Capital Corporation (NASDAQ:ARCC)’s stock price hit a new 52-week low during mid-day trading on Friday . The company traded as low as $17.57 and last traded at $17.5450, with a volume of 4604900 shares changing hands. The stock had previously closed at $17.92.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on ARCC shares. Wells Fargo & Company dropped their price target on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a research note on Thursday, February 5th. Wall Street Zen lowered shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. UBS Group cut their target price on shares of Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a research note on Friday, March 13th. B. Riley Financial reaffirmed a “buy” rating on shares of Ares Capital in a research note on Monday, February 9th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Ares Capital in a report on Monday, December 29th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $21.38.

Ares Capital Stock Performance

The stock has a 50-day moving average of $19.24 and a 200 day moving average of $20.02. The stock has a market cap of $12.58 billion, a PE ratio of 9.43 and a beta of 0.59. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.12.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, meeting the consensus estimate of $0.50. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The company had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. During the same period in the previous year, the business posted $0.55 EPS. Ares Capital’s revenue was up 4.5% on a year-over-year basis. Equities analysts predict that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be issued a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 11.0%. The ex-dividend date is Friday, March 13th. Ares Capital’s dividend payout ratio is currently 103.23%.

Insider Buying and Selling

In other news, CEO Michael Kort Schnabel purchased 12,500 shares of the firm’s stock in a transaction on Thursday, February 5th. The shares were bought at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the purchase, the chief executive officer directly owned 40,500 shares of the company’s stock, valued at approximately $774,765. This trade represents a 44.64% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Scott C. Lem purchased 5,186 shares of the stock in a transaction dated Friday, February 6th. The shares were purchased at an average price of $19.29 per share, with a total value of $100,037.94. Following the completion of the transaction, the chief financial officer owned 39,463 shares of the company’s stock, valued at approximately $761,241.27. This trade represents a 15.13% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Ares Capital

Hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC boosted its stake in shares of Ares Capital by 6.5% in the first quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company’s stock valued at $365,000 after purchasing an additional 1,000 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Ares Capital during the first quarter worth about $273,000. Goldman Sachs Group Inc. lifted its stake in Ares Capital by 14.5% in the first quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company’s stock valued at $62,824,000 after buying an additional 358,829 shares during the last quarter. Empowered Funds LLC raised its position in Ares Capital by 139.9% in the 1st quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company’s stock valued at $613,000 after purchasing an additional 16,128 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in shares of Ares Capital in the first quarter valued at about $14,766,000. 27.38% of the stock is currently owned by hedge funds and other 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.