Wedbush Comments on Ares Capital Co.’s FY2018 Earnings (ARCC)
Ares Capital Co. (NASDAQ:ARCC) – Investment analysts at Wedbush boosted their FY2018 earnings per share estimates for shares of Ares Capital in a report released on Monday, November 5th. Wedbush analyst H. Coffey now expects that the investment management company will post earnings per share of $1.64 for the year, up from their prior estimate of $1.58. Wedbush also issued estimates for Ares Capital’s Q3 2019 earnings at $0.41 EPS, FY2019 earnings at $1.62 EPS, Q2 2020 earnings at $0.41 EPS and FY2020 earnings at $1.66 EPS.
Several other equities analysts have also issued reports on the company. Citigroup started coverage on Ares Capital in a research note on Thursday, August 23rd. They issued a “buy” rating and a $19.00 price target on the stock. BidaskClub lowered Ares Capital from a “hold” rating to a “sell” rating in a research note on Tuesday, October 9th. National Securities restated a “buy” rating and set a $19.00 price objective on shares of Ares Capital in a report on Monday, August 6th. Finally, Oppenheimer set a $18.00 price objective on Ares Capital and gave the company a “buy” rating in a report on Thursday, November 1st. Two equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus price target of $18.13.
Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, October 31st. The investment management company reported $0.45 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.05. Ares Capital had a return on equity of 9.34% and a net margin of 72.13%. The firm had revenue of $342.00 million for the quarter, compared to analyst estimates of $320.15 million. During the same period in the previous year, the firm earned $0.36 earnings per share. The company’s revenue was up 16.3% compared to the same quarter last year.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Legacy Advisors LLC grew its holdings in Ares Capital by 869.0% during the second quarter. Legacy Advisors LLC now owns 9,060 shares of the investment management company’s stock worth $149,000 after buying an additional 8,125 shares in the last quarter. Rehmann Capital Advisory Group grew its holdings in Ares Capital by 43.5% during the second quarter. Rehmann Capital Advisory Group now owns 9,658 shares of the investment management company’s stock worth $159,000 after buying an additional 2,930 shares in the last quarter. grace capital bought a new stake in Ares Capital during the second quarter worth $165,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in Ares Capital during the second quarter worth $174,000. Finally, McKinley Carter Wealth Services Inc. bought a new stake in Ares Capital during the third quarter worth $175,000. Hedge funds and other institutional investors own 40.47% of the company’s stock.
In other news, Director Bates Ann Torre acquired 9,000 shares of the firm’s stock in a transaction dated Wednesday, August 29th. The stock was purchased at an average price of $17.44 per share, for a total transaction of $156,960.00. Following the completion of the acquisition, the director now directly owns 20,000 shares in the company, valued at approximately $348,800. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Eric B. Siegel acquired 6,990 shares of the firm’s stock in a transaction dated Wednesday, September 12th. The shares were purchased at an average price of $17.30 per share, with a total value of $120,927.00. Following the acquisition, the director now owns 36,630 shares of the company’s stock, valued at $633,699. The disclosure for this purchase can be found here. In the last 90 days, insiders have bought 16,590 shares of company stock valued at $288,055. Corporate insiders own 0.49% of the company’s stock.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 28th. Stockholders of record on Friday, December 14th will be issued a dividend of $0.39 per share. The ex-dividend date is Thursday, December 13th. This represents a $1.56 annualized dividend and a dividend yield of 8.91%. Ares Capital’s dividend payout ratio is 112.23%.
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.
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