Ares Capital Corporation (NASDAQ:ARCC) Stock Rated “Moderate Buy” by Sell-Side Brokerages

Ares Capital Corporation (NASDAQ:ARCC) has earned an average recommendation of “Moderate Buy” from the eleven brokerages that are currently covering the company, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 1-year target price among analysts that have covered the stock in the last year is $20.39.

A number of equities research analysts have weighed in on the company. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a research report on Friday, September 4th. Wall Street Zen upgraded Ares Capital from a “sell” rating to a “hold” rating in a research report on Saturday, September 19th. JPMorgan Chase & Co. lowered their price target on Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a research report on Thursday, July 2nd. Keefe, Bruyette & Woods dropped their price objective on Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research note on Thursday, July 30th. Finally, Truist Financial cut their price objective on Ares Capital from $22.00 to $21.00 and set a “buy” rating for the company in a report on Thursday, July 30th.

Institutional Investors Weigh In On Ares Capital

Several hedge funds and other institutional investors have recently bought and sold shares of the business. B. Riley Wealth Advisors Inc. lifted its holdings in Ares Capital by 50.5% in the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 15,767 shares of the investment management company’s stock valued at $301,000 after acquiring an additional 5,288 shares during the last quarter. Ulrich Consultants & Investment Group LLC acquired a new position in shares of Ares Capital in the 3rd quarter worth approximately $267,000. Accel Wealth Management grew its stake in shares of Ares Capital by 2.4% in the 3rd quarter. Accel Wealth Management now owns 58,240 shares of the investment management company’s stock worth $1,112,000 after purchasing an additional 1,345 shares during the last quarter. Baldwin Wealth Partners LLC MA grew its stake in shares of Ares Capital by 33.9% in the 3rd quarter. Baldwin Wealth Partners LLC MA now owns 587,917 shares of the investment management company’s stock worth $11,229,000 after purchasing an additional 148,896 shares during the last quarter. Finally, Dupree Financial Group LLC bought a new stake in shares of Ares Capital in the 3rd quarter worth approximately $7,395,000. 27.38% of the stock is currently owned by institutional investors.

Ares Capital Trading Down 0.4%

Shares of NASDAQ:ARCC opened at $18.56 on Wednesday. The company has a 50 day moving average of $19.52 and a 200-day moving average of $18.96. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 1.14. The firm has a market cap of $13.33 billion, a P/E ratio of 13.75 and a beta of 0.61. Ares Capital has a twelve month low of $17.40 and a twelve month high of $21.14.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, meeting analysts’ consensus estimates of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The business had revenue of $768.00 million for the quarter, compared to analyst estimates of $770.19 million. During the same quarter last year, the business earned $0.50 earnings per share. As a group, analysts anticipate that Ares Capital will post 1.91 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 10.3%. The ex-dividend date of this dividend was Tuesday, September 15th. Ares Capital’s payout ratio is presently 142.22%.

Ares Capital Company Profile

Ares Capital Corporation (NASDAQ: ARCC) is a specialty finance company that operates as a business development company (BDC). It provides financing to middle-market companies, primarily through directly originated loans and other investments. Ares Capital seeks to support businesses that may require capital for acquisitions, growth initiatives, recapitalizations, refinancings and other corporate purposes.

The company invests across a range of industries and typically provides first-lien senior secured loans, second-lien loans, subordinated debt and, to a lesser extent, equity investments.