Ares Capital Corporation (NASDAQ:ARCC) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Ares Capital Corporation (NASDAQ:ARCC) has received an average rating of “Moderate Buy” from the nine brokerages that are covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $21.3750.

ARCC has been the topic of a number of analyst reports. JPMorgan Chase & Co. reduced their price target on Ares Capital from $22.00 to $19.00 and set an “overweight” rating on the stock in a research report on Friday, March 13th. Wall Street Zen downgraded Ares Capital from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Royal Bank Of Canada lowered their price target on Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a report on Monday, February 9th. B. Riley Financial restated a “buy” rating on shares of Ares Capital in a report on Monday, February 9th. Finally, Wells Fargo & Company decreased their price objective on shares of Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th.

Ares Capital Stock Performance

Shares of ARCC stock opened at $17.45 on Friday. The firm has a 50 day moving average of $19.17 and a two-hundred day moving average of $19.98. The stock has a market capitalization of $12.53 billion, a PE ratio of 9.38 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 has a 52 week low of $17.40 and a 52 week high of $23.42.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.50. The business 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 9.89% and a net margin of 42.56%.The company’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 earnings per share. On average, research analysts predict that Ares Capital will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The company 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 of this dividend is Friday, March 13th. Ares Capital’s dividend payout ratio is presently 103.23%.

Insider Buying and Selling at Ares Capital

In other Ares Capital news, CEO Michael Kort Schnabel bought 12,500 shares of Ares Capital stock in a transaction dated Thursday, February 5th. The stock was acquired at an average cost of $19.13 per share, with a total value of $239,125.00. Following the completion of the acquisition, the chief executive officer owned 40,500 shares of the company’s stock, valued at approximately $774,765. This represents a 44.64% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Scott C. Lem purchased 5,186 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were bought at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the acquisition, the chief financial officer owned 39,463 shares of the company’s stock, valued at approximately $761,241.27. The trade was a 15.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.49% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Ares Capital

Large investors have recently modified their holdings of the stock. Canal Capital Management LLC increased its stake in Ares Capital by 1.6% in the 4th quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company’s stock valued at $667,000 after buying an additional 520 shares during the period. BKM Wealth Management LLC boosted its stake in shares of Ares Capital by 1.3% in the third quarter. BKM Wealth Management LLC now owns 42,394 shares of the investment management company’s stock valued at $865,000 after buying an additional 525 shares in the last quarter. FSC Wealth Advisors LLC grew its holdings in Ares Capital by 10.0% during the second quarter. FSC Wealth Advisors LLC now owns 5,830 shares of the investment management company’s stock worth $128,000 after acquiring an additional 530 shares during the period. First Citizens Bank & Trust Co. lifted its holdings in Ares Capital by 5.3% in the fourth quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock valued at $213,000 after acquiring an additional 532 shares during the period. Finally, Perigon Wealth Management LLC grew its stake in shares of Ares Capital by 1.6% during the 4th quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock worth $702,000 after purchasing an additional 547 shares during the period. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Company Profile

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.