Ares Capital (NASDAQ:ARCC) Trading Up 1.3% - Still a Buy?

Ares Capital Co. (NASDAQ:ARCC - Get Free Report)'s stock price rose 1.3% during mid-day trading on Thursday . The company traded as high as $21.04 and last traded at $21.02. Approximately 760,241 shares were traded during trading, a decline of 81% from the average daily volume of 4,063,985 shares. The stock had previously closed at $20.75.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. StockNews.com cut Ares Capital from a "hold" rating to a "sell" rating in a research note on Friday, February 7th. JPMorgan Chase & Co. lowered their price objective on shares of Ares Capital from $24.50 to $22.00 and set an "overweight" rating on the stock in a research report on Thursday. Raymond James cut shares of Ares Capital from an "outperform" rating to a "market perform" rating in a report on Thursday, February 6th. Keefe, Bruyette & Woods lowered their price target on Ares Capital from $23.00 to $22.00 and set an "outperform" rating on the stock in a report on Tuesday, April 8th. Finally, UBS Group decreased their price objective on Ares Capital from $22.00 to $21.00 and set a "neutral" rating for the company in a research report on Thursday, April 17th. One research analyst has rated the stock with a sell rating, three have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, Ares Capital currently has a consensus rating of "Moderate Buy" and a consensus target price of $22.22.

Ares Capital Price Performance

The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.21 and a current ratio of 1.21. The stock's fifty day moving average price is $21.60 and its 200-day moving average price is $21.95. The firm has a market cap of $14.55 billion, a PE ratio of 8.67 and a beta of 0.77.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its quarterly earnings results on Wednesday, February 5th. The investment management company reported $0.55 EPS for the quarter, missing the consensus estimate of $0.58 by ($0.03). Ares Capital had a return on equity of 11.54% and a net margin of 50.90%. As a group, equities analysts forecast that Ares Capital Co. will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Friday, March 14th were paid a $0.48 dividend. The ex-dividend date was Friday, March 14th. This represents a $1.92 dividend on an annualized basis and a yield of 9.04%. Ares Capital's payout ratio is 78.37%.

Institutional Trading of Ares Capital

Several institutional investors and hedge funds have recently modified their holdings of the business. Cyndeo Wealth Partners LLC increased its position in Ares Capital by 2.3% during the fourth quarter. Cyndeo Wealth Partners LLC now owns 19,148 shares of the investment management company's stock worth $419,000 after buying an additional 430 shares in the last quarter. World Investment Advisors raised its stake in Ares Capital by 4.1% in the 4th quarter. World Investment Advisors now owns 12,521 shares of the investment management company's stock valued at $274,000 after purchasing an additional 488 shares during the last quarter. BankPlus Wealth Management LLC lifted its holdings in Ares Capital by 2.5% in the 1st quarter. BankPlus Wealth Management LLC now owns 19,809 shares of the investment management company's stock valued at $439,000 after purchasing an additional 492 shares in the last quarter. Fiduciary Group LLC boosted its stake in shares of Ares Capital by 2.3% during the 4th quarter. Fiduciary Group LLC now owns 21,851 shares of the investment management company's stock worth $478,000 after purchasing an additional 500 shares during the last quarter. Finally, Sheaff Brock Investment Advisors LLC grew its holdings in shares of Ares Capital by 0.9% during the fourth quarter. Sheaff Brock Investment Advisors LLC now owns 56,182 shares of the investment management company's stock worth $1,230,000 after buying an additional 512 shares in the last quarter. Hedge funds and other institutional investors 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.