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

Shares of Ares Capital Corporation (NASDAQ:ARCC) have been given an average rating of “Moderate Buy” by the eleven brokerages that are presently covering the company, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $20.65.

ARCC has been the subject of several research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Capital in a research note on Tuesday, June 9th. Royal Bank Of Canada lowered their price objective on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th. B. Riley Financial lowered their price objective on shares of Ares Capital from $22.00 to $20.00 and set a “buy” rating for the company in a research note on Wednesday, April 29th. UBS Group reduced their target price on shares of Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a report on Friday, March 13th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Ares Capital from $22.00 to $19.00 and set an “overweight” rating for the company in a report on Friday, March 13th.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Canal Capital Management LLC raised its holdings in shares of Ares Capital by 1.6% during the fourth quarter. Canal Capital Management LLC now owns 32,955 shares of the investment management company’s stock worth $667,000 after purchasing an additional 520 shares during the last quarter. Roman Butler Fullerton & Co. raised its holdings in shares of Ares Capital by 1.9% during the first quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company’s stock worth $504,000 after purchasing an additional 528 shares during the last quarter. First Citizens Bank & Trust Co. raised its holdings in shares of Ares Capital by 5.3% during the fourth quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock worth $213,000 after purchasing an additional 532 shares during the last quarter. Perigon Wealth Management LLC raised its holdings in shares of Ares Capital by 1.6% during the fourth quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock worth $702,000 after purchasing an additional 547 shares during the last quarter. Finally, Diversify Advisory Services LLC raised its holdings in shares of Ares Capital by 2.0% during the fourth quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company’s stock worth $589,000 after purchasing an additional 563 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Trading Up 0.1%

NASDAQ:ARCC opened at $18.21 on Monday. Ares Capital has a 12 month low of $17.40 and a 12 month high of $23.42. The firm has a fifty day simple moving average of $18.73 and a 200-day simple moving average of $19.18. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.13. The company has a market capitalization of $13.08 billion, a P/E ratio of 11.17 and a beta of 0.56.

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

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 10.5%. The ex-dividend date of this dividend is Monday, June 15th. Ares Capital’s dividend payout ratio (DPR) 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.