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. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
Industry, Sector and Symbol
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
Phone212-750-7300
Debt
Price-To-Earnings
Sales & Book Value
Annual Sales$1.34 billion
Profitability
Miscellaneous
EmployeesN/A
Next Earnings Date5/1/2019 (Estimated)
OptionableOptionable
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital declared a quarterly dividend on Tuesday, February 12th. Investors of record on Friday, March 15th will be given a dividend of $0.40 per share on Friday, March 29th. This represents a $1.60 annualized dividend and a dividend yield of 9.36%. The ex-dividend date is Thursday, March 14th. This is a boost from Ares Capital's previous quarterly dividend of $0.39. View Ares Capital's Dividend History.
How will Ares Capital's stock buyback program work?
Ares Capital declared that its Board of Directors has approved a stock repurchase plan on Friday, April 7th 2017, which allows the company to buyback $300,000,000.00 in outstanding shares, according to EventVestor. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its shares are undervalued.
How were Ares Capital's earnings last quarter?
Ares Capital Co. (NASDAQ:ARCC) released its quarterly earnings data on Tuesday, February, 12th. The investment management company reported $0.45 earnings per share (EPS) for the quarter, beating the Zacks' consensus estimate of $0.41 by $0.04. The investment management company earned $345 million during the quarter, compared to analysts' expectations of $327.24 million. Ares Capital had a return on equity of 9.69% and a net margin of 64.17%. During the same quarter last year, the business posted $0.38 earnings per share. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
5 analysts have issued 12-month price targets for Ares Capital's stock. Their forecasts range from $17.00 to $20.00. On average, they anticipate Ares Capital's stock price to reach $18.70 in the next year. This suggests a possible upside of 9.4% from the stock's current price. View Analyst Price Targets for Ares Capital.
What is the consensus analysts' recommendation for Ares Capital?
5 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last year. There are currently 5 buy ratings for the stock, resulting in a consensus recommendation of "Buy." View Analyst Ratings for Ares Capital.
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. According to Zacks Investment Research, "Shares of Ares Capital have outperformed the industry over the past six months. Further, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Its fourth-quarter 2018 results show rise in total investment income and healthy portfolio activity. Investment income growth is expected to continue, driven by the acquisition of American Capital, rise in demand for customized financing and improving economy. Further, the company is likely to record rise in investment commitments. However, mounting expenses are expected to hurt bottom-line growth to some extent. Moreover, high debt levels remains a major concern for the company as it might hamper financials." (2/18/2019)
- 2. National Securities analysts commented, " Ares had another strong quarter, posting core NII/share of $0.45 versus our estimate of $0.42 and the consensus estimate of $0.41. The earnings beat came as a result of the company having $2.7 billion of commitments on the quarter with the economics of the origination fees recognized up-front, driving higher fee income and thus the earnings beat.
Additionally, the company’s assets acquired from ACAS at fair value finished 12/31/18 at $683mm, down from $728mm Q/Q. Management noted that the exits of non-core assets from ACAS was almost entirely complete.
The rotation into Ares’ direct originations has helped bolster all-in effective yield and thus earnings, leading management to anticipate a higher run rate of earnings going forward and thus the quarterly base dividend was increased to $0.40/share from $0.39/share. ARCC will also pay $0.02/share of special dividends each quarter of 2019 due to the significant realized gains on ACAS assets, which totaled $426mm and had a realized IRR of 37%.
We note that the dividend and earnings growth at ARCC come as the balance sheet has not been fully leveraged. We continue to expect loan market dislocation and think that Ares will benefit from this both in terms of yield and volume. Accordingly, we expect core NII to trend up and for ARCC to have another two base dividend increases in 2020.
While the rotation out of ACAS assets into direct originations has provided a good tailwind for yield and thus earnings, we now expect much of the earnings growth to come from Ares experiencing net portfolio growth and increasing ROE via increases in balance sheet leverage.
We are maintaining our 2019 core NII/share estimate of $1.75 and rolling out our 2020 core NII/share estimate of $1.78. " (2/13/2019)
Has Ares Capital been receiving favorable news coverage?
News stories about ARCC stock have trended somewhat negative this week, InfoTrie reports. InfoTrie identifies negative and positive press coverage by monitoring more than six thousand blog and news sources in real-time. The firm ranks coverage of public companies on a scale of -5 to 5, with scores nearest to five being the most favorable. Ares Capital earned a media sentiment score of -1.4 on InfoTrie's scale. They also gave news headlines about the investment management company a news buzz of 10.0 out of 10, indicating that recent press coverage is extremely likely to have an impact on the company's share price in the next few days.
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), TPG Specialty Lending (TSLX), Golub Capital BDC (GBDC), New Mountain Finance (NMFC), Pennantpark Floating Rate Capital (PFLT), PennantPark Investment (PNNT), Gladstone Investment (GAIN), Capital Southwest (CSWC), Triplepoint Venture Growth BDC (TPVG), Arlington Asset Investment (AI), Oaktree Strategic Income (OCSI), Stellus Capital Investment (SCM), Safeguard Scientifics (SFE), THL Credit (TCRD) and OFS Capital (OFS).
What other stocks do shareholders of Ares Capital own?
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Mr. Michael J. Arougheti, Exec. VP & Co-Chairman (Age 47)
- Mr. Bennett Rosenthal, Co-Founder and Co-Chairman (Age 56)
- Mr. Robert Kipp DeVeer III, Director & CEO (Age 46)
- Mr. Robert L. Rosen, Director (Age 73)
- Mr. Mitchell S. Goldstein C.P.A., CPA, Co-Pres (Age 52)
Who are Ares Capital's major shareholders?
Ares Capital's stock is owned by many different of institutional and retail investors. Top institutional shareholders include Thornburg Investment Management Inc. (3.73%), Vaughan Nelson Investment Management L.P. (1.51%), Confluence Investment Management LLC (1.22%), D. E. Shaw & Co. Inc. (0.88%), OMERS ADMINISTRATION Corp (0.73%) and 1832 Asset Management L.P. (0.62%). Company insiders that own Ares Capital stock include Bates Ann Torre, Eric B Siegel, Michael J Arougheti, Penelope F Roll, R Kipp Deveer and Steve Bartlett. View Institutional Ownership Trends for Ares Capital.
Which major investors are selling Ares Capital stock?
ARCC stock was sold by a variety of institutional investors in the last quarter, including Comerica Bank, Two Sigma Investments LP, Bank of Montreal Can, Standard Life Aberdeen plc, FMR LLC, Brown Advisory Inc., Boston Partners and Partners Group Holding AG. View Insider Buying and Selling for Ares Capital.
Which major investors are buying Ares Capital stock?
ARCC stock was purchased by a variety of institutional investors in the last quarter, including Investec Asset Management LTD, 1832 Asset Management L.P., DPM Capital LLC, Thornburg Investment Management Inc., Canada Pension Plan Investment Board, Vaughan Nelson Investment Management L.P., Shufro Rose & Co. LLC and Millennium Management LLC. Company insiders that have bought Ares Capital stock in the last two years include Bates Ann Torre, Eric B Siegel, Michael J Arougheti, Penelope F Roll, R Kipp Deveer and Steve Bartlett. View Insider Buying and Selling for Ares Capital.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $17.09.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $7.29 billion and generates $1.34 billion in revenue each year. The investment management company earns $858 million in net income (profit) each year or $1.68 on an earnings per share basis.
What is Ares Capital's official website?
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (NASDAQ ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
