Q2 2024 EPS Estimates for Ares Capital Co. (NASDAQ:ARCC) Raised by Zacks Research

Ares Capital Co. (NASDAQ:ARCC) – Equities research analysts at Zacks Research raised their Q2 2024 earnings per share (EPS) estimates for shares of Ares Capital in a research note issued on Tuesday, May 21st. Zacks Research analyst R. Department now expects that the investment management company will post earnings of $0.58 per share for the quarter, up from their prior estimate of $0.57. The consensus estimate for Ares Capital’s current full-year earnings is $2.34 per share. Zacks Research also issued estimates for Ares Capital’s Q4 2024 earnings at $0.57 EPS, FY2024 earnings at $2.31 EPS, Q1 2025 earnings at $0.56 EPS, Q2 2025 earnings at $0.56 EPS, FY2025 earnings at $2.22 EPS and Q1 2026 earnings at $0.55 EPS.

A number of other equities analysts have also weighed in on ARCC. Oppenheimer upped their target price on Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a research note on Thursday, May 2nd. Truist Financial upped their target price on Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a research note on Thursday, May 2nd. JMP Securities restated a “market outperform” rating and issued a $21.00 target price on shares of Ares Capital in a research note on Tuesday, March 26th. Wells Fargo & Company upped their target price on Ares Capital from $19.00 to $20.00 and gave the stock an “equal weight” rating in a research note on Monday, January 29th. Finally, JPMorgan Chase & Co. upped their price objective on Ares Capital from $21.50 to $22.00 and gave the stock an “overweight” rating in a report on Thursday, May 2nd. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $21.43.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $21.37 on Wednesday. The firm has a market capitalization of $13.13 billion, a P/E ratio of 7.32 and a beta of 0.99. The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 0.99. The stock’s 50-day simple moving average is $20.61 and its two-hundred day simple moving average is $20.26. Ares Capital has a twelve month low of $18.00 and a twelve month high of $21.53.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Wednesday, May 1st. The investment management company reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). The company had revenue of $701.00 million for 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 12.37%. The business’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.56 earnings per share.

Institutional Investors Weigh In On Ares Capital

Institutional investors have recently bought and sold shares of the stock. Nemes Rush Group LLC purchased a new stake in Ares Capital in the 4th quarter worth approximately $25,000. Valley National Advisers Inc. lifted its holdings in Ares Capital by 323.3% in the 1st quarter. Valley National Advisers Inc. now owns 1,435 shares of the investment management company’s stock worth $29,000 after buying an additional 1,096 shares during the period. Pingora Partners LLC purchased a new stake in Ares Capital in the 4th quarter worth approximately $30,000. Cape Investment Advisory Inc. raised its position in shares of Ares Capital by 411.0% in the 3rd quarter. Cape Investment Advisory Inc. now owns 1,952 shares of the investment management company’s stock worth $38,000 after acquiring an additional 1,570 shares in the last quarter. Finally, First Horizon Advisors Inc. raised its position in shares of Ares Capital by 93.9% in the 4th quarter. First Horizon Advisors Inc. now owns 1,922 shares of the investment management company’s stock worth $38,000 after acquiring an additional 931 shares in the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

Ares Capital Dividend Announcement

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 dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 8.98%. The ex-dividend date is Friday, June 14th. Ares Capital’s dividend payout ratio is presently 65.75%.

About Ares Capital

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.