Brokerages Set Ares Capital Corporation (NASDAQ:ARCC) PT at $20.40

Shares of Ares Capital Corporation (NASDAQ:ARCC) have been assigned an average recommendation of “Moderate Buy” from the eleven analysts that are presently covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $20.40.

A number of brokerages have commented on ARCC. Weiss Ratings reissued a “hold (c)” rating on shares of Ares Capital in a research note on Tuesday, June 9th. Oppenheimer decreased their target price on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. JPMorgan Chase & Co. dropped their price target on Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a research report on Thursday, July 2nd. Royal Bank Of Canada reduced their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 29th. Finally, Wells Fargo & Company restated an “equal weight” rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th.

Ares Capital Stock Performance

NASDAQ:ARCC opened at $19.78 on Tuesday. The company has a market cap of $14.20 billion, a price-to-earnings ratio of 14.65 and a beta of 0.56. Ares Capital has a 1 year low of $17.40 and a 1 year high of $22.53. The stock’s 50 day simple moving average is $18.92 and its two-hundred day simple moving average is $18.81. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The firm had revenue of $768.00 million during the quarter, compared to analyst estimates of $770.19 million. During the same period last year, the firm posted $0.50 earnings per share. As a group, equities analysts anticipate that Ares Capital will post 1.91 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 9.7%. Ares Capital’s payout ratio is currently 142.22%.

Institutional Trading of Ares Capital

A number of institutional investors have recently bought and sold shares of the stock. Orion Capital Management LLC purchased a new stake in shares of Ares Capital in the second quarter valued at $25,000. Palladiem LLC bought a new position in Ares Capital during the 4th quarter valued at about $26,000. SWAN Capital LLC purchased a new stake in Ares Capital in the 3rd quarter worth about $27,000. Sankala Group LLC bought a new stake in Ares Capital in the fourth quarter worth about $28,000. Finally, Core Wealth Advisors LLC bought a new stake in Ares Capital in the fourth quarter worth about $33,000. 27.38% of the stock is currently owned by institutional investors.

Ares Capital Company Profile

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.