Ares Capital Co. (NASDAQ:ARCC - Get Free Report) shares were down 0.8% during mid-day trading on Wednesday . The stock traded as low as $21.54 and last traded at $21.61. Approximately 856,338 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 4,143,295 shares. The stock had previously closed at $21.78.
Wall Street Analysts Forecast Growth
Several research analysts have recently commented on the company. StockNews.com lowered Ares Capital from a "hold" rating to a "sell" rating in a research report on Friday, February 7th. Raymond James cut Ares Capital from an "outperform" rating to a "market perform" rating in a research report on Thursday, February 6th. Royal Bank of Canada decreased their target price on Ares Capital from $24.00 to $23.00 and set an "outperform" rating for the company in a research report on Tuesday, May 6th. UBS Group lowered their price target on Ares Capital from $22.00 to $21.00 and set a "neutral" rating on the stock in a report on Thursday, April 17th. Finally, Wells Fargo & Company lowered their price objective on shares of Ares Capital from $23.00 to $22.00 and set an "overweight" rating on the stock in a research report on Monday, April 28th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, Ares Capital currently has a consensus rating of "Moderate Buy" and a consensus price target of $22.00.
Check Out Our Latest Stock Report on ARCC
Ares Capital Stock Performance
The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 1.03. The company has a market capitalization of $14.90 billion, a price-to-earnings ratio of 8.82 and a beta of 0.70. The stock has a 50-day simple moving average of $21.08 and a 200-day simple moving average of $21.89.
Ares Capital (NASDAQ:ARCC - Get Free Report) last released its earnings results on Tuesday, April 29th. The investment management company reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.54 by ($0.04). Ares Capital had a return on equity of 11.54% and a net margin of 50.90%. The firm had revenue of $599.00 million for the quarter, compared to the consensus estimate of $769.32 million. During the same period in the prior year, the business earned $0.59 EPS. The company's quarterly revenue was up 4.4% on a year-over-year basis. On average, analysts anticipate that Ares Capital Co. will post 2.19 earnings per share for the current year.
Ares Capital Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Shareholders of record on Friday, June 13th will be paid a dividend of $0.48 per share. The ex-dividend date is Friday, June 13th. This represents a $1.92 annualized dividend and a yield of 8.88%. Ares Capital's payout ratio is 93.66%.
Institutional Investors Weigh In On Ares Capital
A number of institutional investors have recently added to or reduced their stakes in the company. Elequin Capital LP acquired a new stake in shares of Ares Capital in the first quarter valued at $30,000. Montag & Caldwell LLC acquired a new stake in Ares Capital during the fourth quarter valued at approximately $33,000. VSM Wealth Advisory LLC bought a new stake in Ares Capital during the fourth quarter worth approximately $35,000. Continuum Advisory LLC grew its position in Ares Capital by 320.7% in the first 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 during the last quarter. Finally, Investment Management Corp VA ADV increased its holdings in shares of Ares Capital by 193.9% in the first quarter. Investment Management Corp VA ADV now owns 1,828 shares of the investment management company's stock valued at $41,000 after buying an additional 1,206 shares in the last quarter. 27.38% of the stock is currently owned by institutional investors and hedge funds.
About Ares Capital
(
Get Free Report)
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.
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