Ares Capital Co. (NASDAQ:ARCC) declared a quarterly dividend on Tuesday, February 12th, RTT News reports. Investors of record on Friday, March 15th will be given a dividend of 0.40 per share by the investment management company on Friday, March 29th. This represents a $1.60 annualized dividend and a yield of 9.64%. This is a positive change from Ares Capital’s previous quarterly dividend of $0.39.
Ares Capital has raised its dividend payment by an average of 0.4% per year over the last three years. Ares Capital has a payout ratio of 98.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Analysts expect Ares Capital to earn $1.68 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 92.9%.
NASDAQ ARCC opened at $16.60 on Tuesday. The stock has a market cap of $7.08 billion, a P/E ratio of 11.94, a PEG ratio of 3.27 and a beta of 0.62. Ares Capital has a 52-week low of $14.50 and a 52-week high of $17.63. The company has a debt-to-equity ratio of 0.62, a current ratio of 2.41 and a quick ratio of 2.41.
Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Tuesday, February 12th. The investment management company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.04. Ares Capital had a net margin of 72.13% and a return on equity of 9.34%. During the same quarter in the previous year, the company earned $0.38 earnings per share. As a group, sell-side analysts predict that Ares Capital will post 1.63 EPS for the current fiscal year.
Several research analysts have weighed in on ARCC shares. BidaskClub upgraded shares of Ares Capital from a “sell” rating to a “hold” rating in a research report on Tuesday, October 16th. Zacks Investment Research upgraded shares of Ares Capital from a “hold” rating to a “buy” rating and set a $18.00 target price on the stock in a research report on Wednesday, October 24th. National Securities restated a “buy” rating and set a $19.00 target price on shares of Ares Capital in a research report on Thursday, November 1st. Finally, Oppenheimer set a $18.00 target price on shares of Ares Capital and gave the stock a “buy” rating in a research report on Thursday, November 1st. Two research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $18.25.
In related news, CEO R. Kipp Deveer bought 50,000 shares of the stock in a transaction on Friday, December 14th. The shares were bought at an average cost of $16.02 per share, for a total transaction of $801,000.00. Following the completion of the transaction, the chief executive officer now owns 225,000 shares of the company’s stock, valued at approximately $3,604,500. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Penelope F. Roll sold 6,000 shares of the company’s stock in a transaction dated Tuesday, November 20th. The stock was sold at an average price of $16.76, for a total transaction of $100,560.00. Following the transaction, the chief financial officer now owns 11,147 shares in the company, valued at $186,823.72. The disclosure for this sale can be found here. Insiders have acquired 50,600 shares of company stock worth $810,730 over the last 90 days. 0.49% of the stock is currently owned by company insiders.
Ares Capital Company Profile
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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