Ares Capital (NASDAQ:ARCC) Announces Quarterly Earnings Results

Ares Capital (NASDAQ:ARCC - Get Free Report) announced its earnings results on Tuesday. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.01), FiscalAI reports. The firm had revenue of $763.00 million during the quarter, compared to analysts' expectations of $779.10 million. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.

Ares Capital Stock Down 0.3%

ARCC stock opened at $18.61 on Tuesday. Ares Capital has a twelve month low of $17.40 and a twelve month high of $23.42. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.12. The stock has a market cap of $13.36 billion, a P/E ratio of 10.01 and a beta of 0.58. The business's 50-day moving average price is $18.53 and its 200-day moving average price is $19.61.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.3%. The ex-dividend date of this dividend was Friday, March 13th. Ares Capital's payout ratio is presently 103.23%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on ARCC shares. Wall Street Zen cut Ares Capital from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. B. Riley Financial reissued a "buy" rating on shares of Ares Capital in a research report on Monday, February 9th. Citizens Jmp lowered their price objective on Ares Capital from $23.00 to $22.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 22nd. Wells Fargo & Company lowered their price objective on Ares Capital from $21.00 to $20.00 and set an "overweight" rating on the stock in a research report on Thursday, February 5th. Finally, Keefe, Bruyette & Woods lowered their price objective on Ares Capital from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Thursday, April 16th. Seven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Ares Capital currently has a consensus rating of "Moderate Buy" and an average target price of $21.13.

Insider Transactions at Ares Capital

In related news, CFO Scott C. Lem acquired 5,186 shares of the stock in a transaction dated Friday, February 6th. The shares were purchased at an average cost of $19.29 per share, with a total value of $100,037.94. Following the transaction, the chief financial officer directly owned 39,463 shares in the company, valued at approximately $761,241.27. This represents a 15.13% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Michael Kort Schnabel bought 12,500 shares of the firm's stock in a transaction that occurred on Thursday, February 5th. The shares were acquired at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the purchase, the chief executive officer directly owned 40,500 shares in the company, valued at $774,765. This trade represents a 44.64% increase in their position. The SEC filing for this purchase provides additional information. 0.49% of the stock is owned by insiders.

Institutional Trading of Ares Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in ARCC. AQR Capital Management LLC raised its stake in Ares Capital by 6.5% during the 1st 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 bought a new stake in Ares Capital during the 1st quarter valued at approximately $273,000. Goldman Sachs Group Inc. raised its stake in Ares Capital by 14.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company's stock valued at $62,824,000 after purchasing an additional 358,829 shares during the period. Empowered Funds LLC raised its stake in Ares Capital by 139.9% during 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 period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new stake in Ares Capital during the 1st quarter valued at approximately $14,766,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.