Ares Capital Corporation (NASDAQ:ARCC) Receives $20.75 Average PT from Analysts

Shares of Ares Capital Corporation (NASDAQ:ARCC) have received an average rating of “Moderate Buy” from the eleven research firms that are covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $20.75.

A number of equities research analysts have issued reports on ARCC shares. B. Riley Financial decreased their price objective on Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a research report on Wednesday, April 29th. Truist Financial decreased their price target on Ares Capital from $23.00 to $22.00 and set a “buy” rating on the stock in a report on Wednesday, April 29th. Royal Bank Of Canada decreased their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Keefe, Bruyette & Woods decreased their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday, April 16th. Finally, Citizens Jmp decreased their price target on Ares Capital from $23.00 to $22.00 and set a “market outperform” rating on the stock in a report on Wednesday, April 22nd.

Ares Capital Stock Up 0.1%

Shares of NASDAQ:ARCC opened at $19.04 on Thursday. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.13. Ares Capital has a 12 month low of $17.40 and a 12 month high of $23.42. The company has a 50-day moving average price of $18.70 and a 200 day moving average price of $19.37. The company has a market cap of $13.67 billion, a price-to-earnings ratio of 11.68 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01). Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The business had revenue of $763.00 million during the quarter, compared to the consensus estimate of $778.00 million. During the same period in the previous year, the business posted $0.50 EPS. The firm’s revenue was up 4.2% on a year-over-year basis. As a group, equities research analysts predict that Ares Capital will post 1.91 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 10.1%. The ex-dividend date is Monday, June 15th. Ares Capital’s dividend payout ratio is presently 117.79%.

Institutional Trading of Ares Capital

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Palladiem LLC purchased a new stake in Ares Capital during the 4th quarter valued at $26,000. SWAN Capital LLC purchased a new stake in Ares Capital during the 3rd quarter valued at $27,000. Sankala Group LLC purchased a new stake in Ares Capital during the 4th quarter valued at $28,000. Core Wealth Advisors LLC bought a new position in Ares Capital in the 4th quarter valued at $33,000. Finally, Quarry LP bought a new position in Ares Capital in the 3rd quarter valued at $33,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

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.