Ares Capital (NASDAQ:ARCC) Shares Down 1.8% – What’s Next?
by Kim Johansen · The Markets DailyShares of Ares Capital Corporation (NASDAQ:ARCC – Get Free Report) fell 1.8% during trading on Tuesday . The company traded as low as $17.89 and last traded at $17.96. 7,854,783 shares were traded during trading, an increase of 4% from the average session volume of 7,531,544 shares. The stock had previously closed at $18.28.
Analysts Set New Price Targets
A number of research analysts have issued reports on the stock. UBS Group dropped their target price on shares of Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a report on Friday, March 13th. JPMorgan Chase & Co. decreased their price target on Ares Capital from $22.00 to $19.00 and set an “overweight” rating on the stock in a research note on Friday, March 13th. B. Riley Financial restated a “buy” rating on shares of Ares Capital in a report on Monday, February 9th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ares Capital in a report on Monday, December 29th. Finally, Wells Fargo & Company decreased their target price on Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a research report on Thursday, February 5th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Ares Capital has a consensus rating of “Moderate Buy” and an average price target of $21.38.
Check Out Our Latest Research Report on Ares Capital
Ares Capital Trading Down 1.8%
The company has a market cap of $12.90 billion, a price-to-earnings ratio of 9.66 and a beta of 0.59. The company has a debt-to-equity ratio of 1.12, a current ratio of 1.70 and a quick ratio of 1.70. The business’s 50-day simple moving average is $19.40 and its 200-day simple moving average is $20.08.
Ares Capital (NASDAQ:ARCC – Get Free Report) last released its quarterly earnings results on Wednesday, February 4th. The investment management company reported $0.50 EPS for the quarter, meeting the consensus estimate of $0.50. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The business had revenue of $793.00 million for the quarter, compared to analyst estimates of $795.20 million. During the same period in the prior year, the business earned $0.55 earnings per share. The company’s quarterly revenue was up 4.5% on a year-over-year basis. Research analysts predict that Ares Capital Corporation will post 2.19 earnings per share for the current fiscal year.
Ares Capital Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 10.7%. The ex-dividend date is Friday, March 13th. Ares Capital’s dividend payout ratio is 103.23%.
Insider Buying and Selling at Ares Capital
In related news, CEO Michael Kort Schnabel acquired 12,500 shares of Ares Capital stock in a transaction dated Thursday, February 5th. The shares were acquired at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the completion of the transaction, the chief executive officer directly owned 40,500 shares of the company’s stock, valued at $774,765. The trade was a 44.64% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Scott C. Lem acquired 5,186 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were bought at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the purchase, the chief financial officer owned 39,463 shares of the company’s stock, valued at approximately $761,241.27. The trade was a 15.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.49% of the company’s stock.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Partners Group Holding AG lifted its position in shares of Ares Capital by 4.8% in the 3rd quarter. Partners Group Holding AG now owns 1,767,154 shares of the investment management company’s stock worth $36,068,000 after buying an additional 80,885 shares during the last quarter. International Assets Investment Management LLC boosted its holdings in shares of Ares Capital by 33.9% in the 3rd quarter. International Assets Investment Management LLC now owns 275,891 shares of the investment management company’s stock valued at $5,557,000 after buying an additional 69,844 shares during the period. Prevail Innovative Wealth Advisors LLC acquired a new position in shares of Ares Capital in the 3rd quarter valued at about $1,430,000. Global Retirement Partners LLC grew its position in shares of Ares Capital by 265.3% during the 3rd quarter. Global Retirement Partners LLC now owns 74,725 shares of the investment management company’s stock valued at $1,525,000 after buying an additional 54,267 shares during the last quarter. Finally, Rathbones Group PLC grew its position in shares of Ares Capital by 27.2% during the 3rd quarter. Rathbones Group PLC now owns 438,807 shares of the investment management company’s stock valued at $8,956,000 after buying an additional 93,800 shares during the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.
About Ares Capital
Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.
Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.