FY2024 EPS Estimates for Ares Capital Co. (NASDAQ:ARCC) Lifted by B. Riley

Ares Capital Co. (NASDAQ:ARCC) – Equities research analysts at B. Riley increased their FY2024 earnings per share estimates for shares of Ares Capital in a report issued on Thursday, May 2nd. B. Riley analyst B. Rowe now expects that the investment management company will earn $2.30 per share for the year, up from their previous estimate of $2.29. B. Riley currently has a “Neutral” rating and a $21.00 target price on the stock. The consensus estimate for Ares Capital’s current full-year earnings is $2.35 per share.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Wednesday, May 1st. The investment management company reported $0.59 EPS for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). The firm had revenue of $701.00 million during the quarter, compared to the consensus estimate of $703.85 million. Ares Capital had a net margin of 62.77% and a return on equity of 12.68%. Ares Capital’s revenue was up 13.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.56 earnings per share.

Several other equities research analysts have also issued reports on ARCC. JPMorgan Chase & Co. lifted their price target on Ares Capital from $21.50 to $22.00 and gave the stock an “overweight” rating in a research note on Thursday. Oppenheimer upped their price objective on shares of Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a report on Thursday. Wells Fargo & Company boosted their price target on Ares Capital from $19.00 to $20.00 and gave the stock an “equal weight” rating in a research report on Monday, January 29th. JMP Securities reaffirmed a “market outperform” rating and set a $21.00 price objective on shares of Ares Capital in a research report on Tuesday, March 26th. Finally, Truist Financial lifted their price target on Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a research report on Thursday. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $21.43.

Ares Capital Stock Performance

NASDAQ:ARCC opened at $20.61 on Friday. The business’s 50-day moving average price is $20.41 and its two-hundred day moving average price is $20.06. The stock has a market cap of $12.51 billion, a P/E ratio of 7.06 and a beta of 0.99. Ares Capital has a twelve month low of $17.53 and a twelve month high of $21.00. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.06.

Institutional Investors Weigh In On Ares Capital

A number of hedge funds have recently added to or reduced their stakes in the stock. Confluence Investment Management LLC purchased a new position in Ares Capital in the first quarter worth about $86,227,000. International Assets Investment Management LLC raised its position in Ares Capital by 1,865.8% in the fourth quarter. International Assets Investment Management LLC now owns 4,214,991 shares of the investment management company’s stock worth $844,260,000 after acquiring an additional 4,000,570 shares during the period. Van ECK Associates Corp grew its position in shares of Ares Capital by 17.4% during the 1st quarter. Van ECK Associates Corp now owns 9,719,943 shares of the investment management company’s stock valued at $202,369,000 after acquiring an additional 1,437,864 shares during the period. Melia Wealth LLC bought a new position in Ares Capital in the 4th quarter worth $13,992,000. Finally, Tudor Investment Corp Et Al bought a new stake in Ares Capital during the third quarter valued at about $11,952,000. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, June 14th will be issued a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 9.32%. The ex-dividend date is Friday, June 14th. Ares Capital’s dividend payout ratio is currently 65.75%.

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.