Ares Capital Corporation (NASDAQ:ARCC) Stock Has Consensus Price Target of $20.39 According to Brokerages

Shares of Ares Capital Corporation (NASDAQ:ARCC) have received a consensus rating of “Moderate Buy” from the eleven analysts that are presently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and nine have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $20.39.

ARCC has been the topic of a number of research analyst reports. Wall Street Zen downgraded Ares Capital from a “hold” rating to a “sell” rating in a report on Saturday. Keefe, Bruyette & Woods dropped their price target on Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a research note on Friday, September 4th. UBS Group raised shares of Ares Capital from a “neutral” rating to a “buy” rating and set a $21.00 price objective for the company in a report on Thursday, October 29th. Finally, Truist Financial lowered their target price on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating for the company in a research note on Thursday, July 30th.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE purchased a new position in Ares Capital during the 2nd quarter valued at about $165,569,000. Legal & General Group Plc purchased a new stake in shares of Ares Capital in the second quarter worth approximately $120,538,000. Advisors Capital Management LLC purchased a new position in Ares Capital during the second quarter valued at approximately $63,140,000. OMERS ADMINISTRATION Corp purchased a new position in Ares Capital during the second quarter valued at approximately $53,867,000. Finally, BlackRock Inc. acquired a new position in Ares Capital in the 2nd quarter valued at approximately $45,339,000. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Trading Down 2.1%

NASDAQ:ARCC opened at $19.01 on Friday. The business’s 50-day moving average is $19.19 and its two-hundred day moving average is $19.02. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.00 and a quick ratio of 1.00. Ares Capital has a 12 month low of $17.40 and a 12 month high of $21.14. The firm has a market capitalization of $13.73 billion, a PE ratio of 15.58 and a beta of 0.60.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Tuesday, October 27th. The investment management company reported $0.46 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.02). Ares Capital had a net margin of 28.34% and a return on equity of 9.72%. The business had revenue of $763.00 million for the quarter, compared to analyst estimates of $776.34 million. During the same quarter in the prior year, the business earned $0.50 earnings per share. The firm’s revenue was down 2.4% on a year-over-year basis. Research analysts predict that Ares Capital will post 1.88 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Tuesday, December 15th will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.1%. The ex-dividend date is Tuesday, December 15th. Ares Capital’s dividend payout ratio is presently 157.38%.

Ares Capital Company Profile

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.