Ares Capital Co. (NASDAQ:ARCC) – Equities researchers at Oppenheimer raised their FY2018 earnings per share (EPS) estimates for Ares Capital in a report issued on Tuesday. Oppenheimer analyst L. Rudary now forecasts that the investment management company will post earnings of $1.52 per share for the year, up from their prior forecast of $1.49. Oppenheimer currently has a “Buy” rating and a $18.00 target price on the stock. Oppenheimer also issued estimates for Ares Capital’s FY2019 earnings at $1.57 EPS.
A number of other brokerages have also recently commented on ARCC. TheStreet upgraded Ares Capital from a “c+” rating to a “b-” rating in a report on Tuesday, December 12th. Wedbush began coverage on Ares Capital in a report on Monday, November 27th. They set an “outperform” rating and a $18.00 target price on the stock. BidaskClub cut Ares Capital from a “sell” rating to a “strong sell” rating in a report on Tuesday, December 5th. Zacks Investment Research cut Ares Capital from a “hold” rating to a “sell” rating in a report on Monday, November 6th. Finally, Compass Point started coverage on Ares Capital in a report on Wednesday, December 6th. They set a “buy” rating and a $17.50 price objective on the stock. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and eight have given a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average price target of $18.00.
Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Tuesday, February 13th. The investment management company reported $0.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.37 by $0.01. The business had revenue of $307.00 million for the quarter, compared to analysts’ expectations of $301.38 million. Ares Capital had a return on equity of 8.45% and a net margin of 57.50%. The company’s revenue was up 17.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.42 EPS.
The company also recently announced a quarterly dividend, which will be paid on Friday, March 30th. Investors of record on Thursday, March 15th will be given a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 9.57%. The ex-dividend date is Wednesday, March 14th. Ares Capital’s dividend payout ratio (DPR) is currently 96.82%.
Institutional investors and hedge funds have recently modified their holdings of the stock. Bessemer Group Inc. raised its position in shares of Ares Capital by 14,542.3% in the 4th quarter. Bessemer Group Inc. now owns 7,614 shares of the investment management company’s stock worth $120,000 after buying an additional 7,562 shares during the period. Legacy Advisors LLC purchased a new position in shares of Ares Capital in the 3rd quarter worth $128,000. Joel Isaacson & Co. LLC purchased a new position in shares of Ares Capital in the 3rd quarter worth $164,000. Van Cleef Asset Management Inc purchased a new position in shares of Ares Capital in the 4th quarter worth $157,000. Finally, Sumitomo Mitsui Trust Holdings Inc. purchased a new position in shares of Ares Capital in the 3rd quarter worth $167,000. 43.62% of the stock is currently owned by institutional investors and hedge funds.
About Ares Capital
Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.
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