Ares Capital Corporation (NASDAQ:ARCC) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Ares Capital Corporation (NASDAQ:ARCC) has been assigned a consensus rating of “Moderate Buy” from the eleven research firms that are covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $20.75.

Several brokerages recently issued reports on ARCC. Royal Bank Of Canada dropped their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. Keefe, Bruyette & Woods dropped their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Thursday, April 16th. Oppenheimer dropped their price target on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. Truist Financial dropped their price target on Ares Capital from $23.00 to $22.00 and set a “buy” rating on the stock in a research report on Wednesday, April 29th. Finally, UBS Group dropped their price target on Ares Capital from $21.00 to $19.00 and set a “neutral” rating on the stock in a research report on Friday, March 13th.

Ares Capital Stock Performance

Shares of ARCC stock opened at $18.68 on Thursday. The stock has a market capitalization of $13.41 billion, a PE ratio of 11.46 and a beta of 0.56. Ares Capital has a 52-week low of $17.40 and a 52-week high of $23.42. The stock’s 50-day moving average price is $18.60 and its 200 day moving average price is $19.40. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.13.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.01). The company had revenue of $763.00 million during the quarter, compared to analyst estimates of $778.00 million. Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The business’s revenue was up 4.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.50 EPS. As a group, equities research analysts forecast that Ares Capital will post 1.91 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 10.3%. The ex-dividend date of this dividend is Monday, June 15th. Ares Capital’s payout ratio is currently 117.79%.

Institutional Investors Weigh In On Ares Capital

A number of institutional investors have recently added to or reduced their stakes in ARCC. AQR Capital Management LLC boosted its holdings in Ares Capital by 6.5% in the 1st quarter. AQR Capital Management LLC now owns 16,502 shares of the investment management company’s stock valued at $365,000 after purchasing an additional 1,000 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Ares Capital during the 1st quarter worth approximately $273,000. Goldman Sachs Group Inc. boosted its stake in shares of Ares Capital by 14.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,835,007 shares of the investment management company’s stock worth $62,824,000 after acquiring an additional 358,829 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of Ares Capital by 139.9% during the 1st quarter. Empowered Funds LLC now owns 27,655 shares of the investment management company’s stock worth $613,000 after acquiring an additional 16,128 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in shares of Ares Capital during the 1st quarter worth approximately $14,766,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

About Ares Capital

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.