Ares Capital (NASDAQ:ARCC) Reaches New 1-Year High at $21.04

Ares Capital Co. (NASDAQ:ARCC)’s share price reached a new 52-week high on Tuesday . The company traded as high as $21.04 and last traded at $20.83, with a volume of 569736 shares traded. The stock had previously closed at $20.89.

Wall Street Analysts Forecast Growth

ARCC has been the topic of several research analyst reports. B. Riley downgraded Ares Capital from a “buy” rating to a “neutral” rating and set a $21.00 price target on the stock. in a research report on Monday, January 8th. Truist Financial lifted their price target on Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a research report on Thursday, May 2nd. Wells Fargo & Company increased their price objective on Ares Capital from $19.00 to $20.00 and gave the company an “equal weight” rating in a research report on Monday, January 29th. JMP Securities reaffirmed a “market outperform” rating and set a $21.00 target price on shares of Ares Capital in a research report on Tuesday, March 26th. Finally, Oppenheimer upped their target price on shares of Ares Capital from $21.00 to $22.00 and gave the company an “outperform” rating in a research note on Thursday, May 2nd. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $21.43.

Ares Capital Stock Down 0.3 %

The firm has a market capitalization of $12.66 billion, a price-to-earnings ratio of 7.15 and a beta of 0.99. The business has a 50 day moving average of $20.44 and a 200 day moving average of $20.09. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.63 and a quick ratio of 1.63.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Wednesday, May 1st. The investment management company reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). Ares Capital had a net margin of 62.77% and a return on equity of 12.37%. The business had revenue of $701.00 million during the quarter, compared to analyst estimates of $703.85 million. During the same quarter in the prior year, the company posted $0.56 EPS. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. On average, equities analysts anticipate that Ares Capital Co. will post 2.34 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be paid a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 9.22%. The ex-dividend date is Thursday, June 13th. Ares Capital’s dividend payout ratio is 65.75%.

Institutional Investors Weigh In On Ares Capital

Large investors have recently modified their holdings of the stock. Confluence Investment Management LLC bought a new stake in Ares Capital in the first quarter valued at $86,227,000. International Assets Investment Management LLC grew its holdings in shares of Ares Capital by 1,865.8% in the 4th quarter. International Assets Investment Management LLC now owns 4,214,991 shares of the investment management company’s stock worth $844,260,000 after purchasing an additional 4,000,570 shares during the last quarter. Van ECK Associates Corp increased its position in shares of Ares Capital by 17.4% during the 1st quarter. Van ECK Associates Corp now owns 9,719,943 shares of the investment management company’s stock worth $202,369,000 after purchasing an additional 1,437,864 shares in the last quarter. Melia Wealth LLC bought a new position in Ares Capital during the 4th quarter valued at about $13,992,000. Finally, Tudor Investment Corp Et Al acquired a new position in Ares Capital in the third quarter valued at about $11,952,000. 27.38% of the stock is currently owned by institutional investors.

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.