Ares Capital (NASDAQ:ARCC) had its price objective raised by analysts at Wedbush from $20.00 to $21.00 in a research report issued on Wednesday, Benzinga reports. The firm currently has an "outperform" rating on the investment management company's stock. Wedbush's target price would suggest a potential upside of 10.41% from the stock's current price. Wedbush also issued estimates for Ares Capital's Q2 2021 earnings at $0.45 EPS and FY2021 earnings at $1.80 EPS.
Other equities analysts have also issued reports about the company. TheStreet raised Ares Capital from a "c+" rating to a "b-" rating in a research note on Friday, April 30th. Zacks Investment Research lowered Ares Capital from a "buy" rating to a "hold" rating and set a $20.00 price target for the company. in a research note on Tuesday, April 13th. JPMorgan Chase & Co. raised their price target on Ares Capital from $18.00 to $19.00 and gave the stock a "neutral" rating in a research note on Wednesday, March 17th. Citigroup raised their price target on Ares Capital from $17.00 to $20.00 in a research note on Thursday, February 11th. Finally, Raymond James raised their price target on Ares Capital from $19.00 to $20.00 and gave the stock an "outperform" rating in a research note on Thursday, April 29th. Three research analysts have rated the stock with a hold rating and six have issued a buy rating to the company's stock. Ares Capital presently has a consensus rating of "Buy" and a consensus target price of $18.56.
Ares Capital stock traded up $0.02 during midday trading on Wednesday, reaching $19.02. 18,263 shares of the stock traded hands, compared to its average volume of 2,138,654. The stock's fifty day moving average is $19.06 and its 200-day moving average is $17.34. Ares Capital has a 12 month low of $12.18 and a 12 month high of $19.76. The stock has a market cap of $8.32 billion, a P/E ratio of 25.27 and a beta of 1.20. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 1.08.
Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, April 27th. The investment management company reported $0.43 EPS for the quarter, beating analysts' consensus estimates of $0.42 by $0.01. Ares Capital had a return on equity of 10.05% and a net margin of 21.28%. The company had revenue of $390.00 million during the quarter, compared to analyst estimates of $385.85 million. During the same period in the prior year, the company earned $0.41 earnings per share. The firm's revenue was up 5.7% on a year-over-year basis. On average, equities analysts predict that Ares Capital will post 1.59 EPS for the current fiscal year.
Hedge funds have recently modified their holdings of the company. Core Wealth Advisors Inc. acquired a new position in shares of Ares Capital in the 4th quarter valued at about $25,000. Montag A & Associates Inc. purchased a new position in shares of Ares Capital in the 4th quarter valued at about $25,000. Perigon Wealth Management LLC purchased a new position in shares of Ares Capital in the 4th quarter valued at about $37,000. Fieldpoint Private Securities LLC purchased a new position in shares of Ares Capital in the 4th quarter valued at about $39,000. Finally, Parkside Financial Bank & Trust purchased a new position in shares of Ares Capital in the 4th quarter valued at about $46,000. 31.33% of the stock is owned by institutional investors and hedge funds.
About Ares Capital
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.
Featured Story: Intrinsic Value and Stock Selection
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 [email protected]
Featured Article: What’s a Black Swan?7 Cyclical Stocks That Can Help You Play Defense
A cyclical stock is one that produces returns that are influenced by macroeconomic or systematic changes in the broader economy. In strong economic times, these stocks show generally strong growth because they are influenced by discretionary consumer spending. Of course, that means the opposite is true as well. When the economy is weak, these stocks may pull back further than other stocks.
Cyclical stocks cover many sectors, but travel and entertainment stocks come to mind. Airlines, hotels, and restaurants are all examples of cyclical sectors that do well during times of economic growth but are among the first to pull back in recessionary times.
Why do cyclical stocks deserve a place in an investor’s portfolio? Believe it or not, it’s for the relative predictability that they provide. Investors may enjoy speculating in growth stocks, but these are prone to bubbles. This isn’t to say that cyclical stocks are not volatile, but they offer price movement that is a bit more predictable.
In this special presentation, we’re looking at cyclical stocks that are looking strong as we come out of the pandemic. And some of these stocks held up well during the pandemic which means they’re starting from a stronger base.View the "7 Cyclical Stocks That Can Help You Play Defense "