Ares Capital Corporation (NASDAQ:ARCC) Given Average Recommendation of “Moderate Buy” by Brokerages

Shares of Ares Capital Corporation (NASDAQ:ARCC) have earned a consensus rating of “Moderate Buy” from the eleven analysts that are presently covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation and eight have issued a buy recommendation on the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $20.60.

A number of equities research analysts have weighed in on ARCC shares. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a research report on Tuesday, June 9th. Keefe, Bruyette & Woods lowered 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. Wells Fargo & Company reiterated an “equal weight” rating and set a $19.00 price target (down from $20.00) on shares of Ares Capital in a research report on Friday, June 12th. JPMorgan Chase & Co. dropped their price objective on Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a research note on Thursday, July 2nd. Finally, Royal Bank Of Canada cut their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Wednesday, April 29th.

Hedge Funds Weigh In On Ares Capital

Several large investors have recently made changes to their positions in the business. Palladiem LLC bought a new stake in shares of Ares Capital in the 4th quarter worth approximately $26,000. SWAN Capital LLC bought a new stake in Ares Capital during the third quarter worth approximately $27,000. Sankala Group LLC bought a new stake in Ares Capital during the fourth quarter worth approximately $28,000. Core Wealth Advisors LLC acquired a new position in Ares Capital in the fourth quarter worth approximately $33,000. Finally, Quarry LP acquired a new position in Ares Capital in the third quarter worth approximately $33,000. Institutional investors own 27.38% of the company’s stock.

Ares Capital Stock Down 1.3%

ARCC stock opened at $18.61 on Friday. The firm’s 50-day moving average is $18.66 and its two-hundred day moving average is $18.97. The company has a market capitalization of $13.36 billion, a price-to-earnings ratio of 11.42 and a beta of 0.56. Ares Capital has a 52 week low of $17.40 and a 52 week high of $23.16. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.13.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data 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). Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The company had revenue of $763.00 million during the quarter, compared to the consensus estimate of $778.00 million. During the same quarter last year, the business earned $0.50 earnings per share. The company’s revenue was up 4.2% on a year-over-year basis. On average, analysts forecast that Ares Capital will post 1.9 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were given a $0.48 dividend. The ex-dividend date was Monday, June 15th. This represents a $1.92 annualized dividend and a yield of 10.3%. Ares Capital’s payout ratio is 117.79%.

Ares Capital Company Profile

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.