Ares Capital Co. (NASDAQ:ARCC - Get Free Report) saw a large growth in short interest in the month of April. As of April 15th, there was short interest totalling 16,930,000 shares, a growth of 5.2% from the March 31st total of 16,090,000 shares. Based on an average trading volume of 3,610,000 shares, the days-to-cover ratio is presently 4.7 days.
Ares Capital Price Performance
Shares of NASDAQ:ARCC traded up $0.24 on Wednesday, hitting $20.85. The company's stock had a trading volume of 3,898,991 shares, compared to its average volume of 3,530,152. The company has a 50-day simple moving average of $20.38 and a 200 day simple moving average of $20.05. Ares Capital has a 1 year low of $17.53 and a 1 year high of $21.00. The company has a market capitalization of $12.65 billion, a PE ratio of 7.78 and a beta of 1.00. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.24 and a quick ratio of 1.24.
Ares Capital (NASDAQ:ARCC - Get Free Report) last released its quarterly earnings results on Wednesday, February 7th. The investment management company reported $0.63 earnings per share for the quarter, beating the consensus estimate of $0.60 by $0.03. Ares Capital had a return on equity of 12.50% and a net margin of 58.22%. The firm had revenue of $707.00 million for the quarter, compared to analysts' expectations of $669.78 million. During the same quarter last year, the firm posted $0.68 EPS. The company's revenue was up 10.5% compared to the same quarter last year. Sell-side analysts forecast that Ares Capital will post 2.35 EPS for the current fiscal year.
Ares Capital Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, June 14th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.21%. Ares Capital's dividend payout ratio is 71.91%.
Wall Street Analysts Forecast Growth
ARCC has been the topic of a number of recent research reports. B. Riley cut Ares Capital from a "buy" rating to a "neutral" rating and set a $21.00 price objective on the stock. in a report on Monday, January 8th. Wells Fargo & Company increased their price objective on Ares Capital from $19.00 to $20.00 and gave the stock an "equal weight" rating in a report on Monday, January 29th. Finally, JMP Securities reissued a "market outperform" rating and set a $21.00 price objective on shares of Ares Capital in a report on Tuesday, March 26th. Three research analysts have rated the stock with a hold rating and two have issued a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $20.80.
Read Our Latest Report on ARCC
Hedge Funds Weigh In On Ares Capital
Large investors have recently modified their holdings of the company. Nemes Rush Group LLC purchased a new position in shares of Ares Capital during the 4th quarter valued at about $25,000. Valley National Advisers Inc. raised its holdings in shares of Ares Capital by 323.3% during the 1st quarter. Valley National Advisers Inc. now owns 1,435 shares of the investment management company's stock valued at $29,000 after buying an additional 1,096 shares in the last quarter. Pingora Partners LLC purchased a new position in shares of Ares Capital during the 4th quarter valued at about $30,000. Cape Investment Advisory Inc. raised its holdings in shares of Ares Capital by 411.0% during the 3rd quarter. Cape Investment Advisory Inc. now owns 1,952 shares of the investment management company's stock valued at $38,000 after buying an additional 1,570 shares in the last quarter. Finally, First Horizon Advisors Inc. raised its holdings in shares of Ares Capital by 93.9% during the 4th quarter. First Horizon Advisors Inc. now owns 1,922 shares of the investment management company's stock valued at $38,000 after buying an additional 931 shares in the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors.
Ares Capital Company Profile
(
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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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