Ares Capital (NASDAQ:ARCC) Price Target Raised to $22.00

Ares Capital (NASDAQ:ARCC) had its target price raised by JPMorgan Chase & Co. from $21.50 to $22.00 in a research report released on Thursday morning, Benzinga reports. They currently have an overweight rating on the investment management company’s stock.

A number of other research firms have also recently commented on ARCC. Truist Financial upped their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the company a buy rating in a research report on Thursday. Oppenheimer raised their price target on Ares Capital from $21.00 to $22.00 and gave the stock an outperform rating in a research report on Thursday. B. Riley downgraded shares of Ares Capital from a buy rating to a neutral rating and set a $21.00 price objective for the company. in a research report on Monday, January 8th. Wells Fargo & Company lifted their target price on Ares Capital from $19.00 to $20.00 and gave the company an equal weight rating in a research report on Monday, January 29th. Finally, JMP Securities reiterated a market outperform rating and issued a $21.00 price target on shares of Ares Capital in a research note on Tuesday, March 26th. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of Moderate Buy and a consensus target price of $21.43.

Ares Capital Stock Up 0.3 %

Shares of NASDAQ ARCC opened at $20.61 on Thursday. Ares Capital has a 1 year low of $17.53 and a 1 year high of $21.00. The firm’s 50-day moving average is $20.42 and its 200-day moving average is $20.07. The company has a current ratio of 1.63, a quick ratio of 1.24 and a debt-to-equity ratio of 0.99. The firm has a market capitalization of $12.53 billion, a PE ratio of 7.06 and a beta of 0.99.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Wednesday, May 1st. The investment management company reported $0.59 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.01). Ares Capital had a return on equity of 12.37% and a net margin of 62.77%. The firm had revenue of $701.00 million for the quarter, compared to the consensus estimate of $703.85 million. During the same period in the previous year, the business earned $0.56 EPS. The firm’s revenue was up 13.4% compared to the same quarter last year. Equities analysts expect that Ares Capital will post 2.34 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Shareholders 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 9.32%. The ex-dividend date of this dividend is Friday, June 14th. Ares Capital’s dividend payout ratio is 65.75%.

Hedge Funds Weigh In On Ares Capital

Several large investors have recently modified their holdings of ARCC. Van ECK Associates Corp raised its holdings in Ares Capital by 17.4% in 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. International Assets Investment Management LLC increased its stake in shares of Ares Capital by 1,865.8% during 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 purchasing an additional 4,000,570 shares during the period. Confluence Investment Management LLC acquired a new stake in Ares Capital during the 1st quarter worth approximately $86,227,000. Advisors Capital Management LLC boosted its stake in Ares Capital by 0.8% in the 3rd quarter. Advisors Capital Management LLC now owns 3,043,209 shares of the investment management company’s stock valued at $59,251,000 after purchasing an additional 23,276 shares during the period. Finally, Sound Income Strategies LLC grew its holdings in Ares Capital by 5.4% in the 1st quarter. Sound Income Strategies LLC now owns 2,060,063 shares of the investment management company’s stock valued at $42,891,000 after buying an additional 105,277 shares in the last quarter. 27.38% of the stock is owned by institutional investors.

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.