Ares Capital Co. (NASDAQ:ARCC) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of Ares Capital Co. (NASDAQ:ARCC) have been given an average rating of “Moderate Buy” by the nine analysts that are covering the firm, MarketBeat reports. Two research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $22.29.

ARCC has been the subject of several research reports. StockNews.com raised shares of Ares Capital from a “sell” rating to a “hold” rating in a research note on Tuesday, November 12th. B. Riley boosted their price target on Ares Capital from $21.00 to $22.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Finally, Wells Fargo & Company upgraded Ares Capital from an “equal weight” rating to an “overweight” rating in a report on Thursday, December 12th.

Ares Capital Price Performance

Shares of NASDAQ:ARCC opened at $21.75 on Thursday. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.29 and a current ratio of 1.29. The business’s fifty day moving average price is $21.67 and its two-hundred day moving average price is $21.12. The stock has a market cap of $14.05 billion, a PE ratio of 8.37 and a beta of 1.01. Ares Capital has a one year low of $19.32 and a one year high of $22.43.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, October 30th. The investment management company reported $0.58 earnings per share for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.01). Ares Capital had a net margin of 53.71% and a return on equity of 12.06%. The firm had revenue of $755.00 million during the quarter, compared to analyst estimates of $770.45 million. During the same period in the prior year, the firm earned $0.59 EPS. The business’s quarterly revenue was up 15.3% on a year-over-year basis. On average, analysts forecast that Ares Capital will post 2.36 EPS for the current fiscal year.

Ares Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Shareholders of record on Friday, December 13th will be given a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 8.83%. The ex-dividend date of this dividend is Friday, December 13th. Ares Capital’s dividend payout ratio (DPR) is 73.85%.

Institutional Investors Weigh In On Ares Capital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Asset Dedication LLC purchased a new position in shares of Ares Capital during the 2nd quarter valued at approximately $26,000. Horizon Financial Services LLC bought a new position in Ares Capital during the 3rd quarter valued at $28,000. nVerses Capital LLC boosted its stake in Ares Capital by 88.9% during the 2nd quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company’s stock valued at $35,000 after acquiring an additional 800 shares during the last quarter. Ridgewood Investments LLC acquired a new position in Ares Capital during the 2nd quarter worth $42,000. Finally, Blue Trust Inc. increased its position in shares of Ares Capital by 56.8% in the 3rd quarter. Blue Trust Inc. now owns 2,510 shares of the investment management company’s stock worth $52,000 after purchasing an additional 909 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

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.