Ares Capital Corporation (NASDAQ:ARCC) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Ares Capital Corporation (NASDAQ:ARCC) has received a consensus rating of "Moderate Buy", with eight analysts issuing buy ratings and two holding the stock.
• The company's average 12-month price target is $22.6250, with recent price targets set between $22.00 and $23.00 by various analysts.
• Ares Capital announced a quarterly dividend of $0.48 per share, equating to an annualized dividend yield of 9.6%, with a payout ratio of 93.66%.

Ares Capital Corporation (NASDAQ:ARCC - Get Free Report) has earned an average recommendation of "Moderate Buy" from the ten analysts that are covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $22.6250.

A number of analysts have recently commented on the company. Citigroup restated an "outperform" rating on shares of Ares Capital in a report on Thursday, July 31st. Keefe, Bruyette & Woods upped their price objective on Ares Capital from $22.00 to $23.00 and gave the company an "outperform" rating in a research note on Wednesday, July 30th. JPMorgan Chase & Co. decreased their target price on Ares Capital from $23.00 to $22.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 1st. Capital One Financial set a $22.50 target price on Ares Capital in a research report on Friday, October 10th. Finally, Wells Fargo & Company upped their target price on Ares Capital from $22.00 to $23.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th.

Ares Capital Stock Up 1.6%

Shares of Ares Capital stock opened at $19.91 on Wednesday. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.01. Ares Capital has a 12 month low of $18.26 and a 12 month high of $23.84. The business has a fifty day simple moving average of $21.22 and a 200 day simple moving average of $21.52. The stock has a market cap of $14.04 billion, a PE ratio of 9.71 and a beta of 0.68.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, July 29th. The investment management company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.01). The business had revenue of $614.00 million for the quarter, compared to the consensus estimate of $748.76 million. Ares Capital had a return on equity of 10.48% and a net margin of 44.94%.During the same quarter in the prior year, the firm posted $0.61 earnings per share. Research analysts predict that Ares Capital will post 2.19 EPS for the current year.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.6%. The ex-dividend date of this dividend was Monday, September 15th. Ares Capital's dividend payout ratio (DPR) is currently 93.66%.

Institutional Investors Weigh In On Ares Capital

Hedge funds have recently modified their holdings of the company. Fourth Dimension Wealth LLC bought a new position in shares of Ares Capital in the 2nd quarter worth about $29,000. Elequin Capital LP bought a new position in shares of Ares Capital during the 1st quarter worth approximately $30,000. Continuum Advisory LLC lifted its position in shares of Ares Capital by 320.7% during the 1st quarter. Continuum Advisory LLC now owns 1,628 shares of the investment management company's stock worth $36,000 after buying an additional 1,241 shares in the last quarter. CNB Bank bought a new position in shares of Ares Capital during the 2nd quarter worth approximately $36,000. Finally, WFA of San Diego LLC bought a new stake in shares of Ares Capital in the 2nd quarter worth approximately $36,000. Institutional investors and hedge funds own 27.38% of the company's stock.

Ares Capital Company Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.