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

Ares Capital Corporation (NASDAQ:ARCC) has earned an average recommendation of “Moderate Buy” from the ten brokerages that are covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $22.25.

A number of equities research analysts have commented on ARCC shares. Citigroup reissued a “market outperform” rating on shares of Ares Capital in a report on Thursday, October 30th. Capital One Financial set a $22.50 target price on Ares Capital in a research note on Friday, October 10th. JPMorgan Chase & Co. lowered their price target on Ares Capital from $23.00 to $22.00 and set an “overweight” rating on the stock in a report on Wednesday, October 1st. Royal Bank Of Canada cut their price objective on shares of Ares Capital from $24.00 to $23.00 and set an “outperform” rating for the company in a report on Wednesday, October 29th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Ares Capital in a research report on Monday, December 29th.

Insider Activity at Ares Capital

In other news, CEO Michael Kort Schnabel acquired 13,000 shares of the business’s stock in a transaction dated Friday, October 31st. The stock was purchased at an average price of $20.39 per share, for a total transaction of $265,070.00. Following the completion of the transaction, the chief executive officer directly owned 28,000 shares in the company, valued at approximately $570,920. This trade represents a 86.67% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.48% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ares Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. City Holding Co. raised its position in Ares Capital by 444.4% in the third quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock worth $25,000 after acquiring an additional 1,000 shares during the period. SWAN Capital LLC bought a new position in shares of Ares Capital during the 3rd quarter valued at approximately $27,000. Fourth Dimension Wealth LLC purchased a new stake in shares of Ares Capital during the 2nd quarter worth approximately $29,000. NBT Bank N A NY purchased a new stake in shares of Ares Capital during the 3rd quarter worth approximately $31,000. Finally, Quarry LP bought a new stake in shares of Ares Capital in the 3rd quarter worth approximately $33,000. 27.38% of the stock is owned by institutional investors.

Ares Capital Stock Performance

ARCC opened at $20.44 on Monday. The firm has a market cap of $14.63 billion, a P/E ratio of 10.22 and a beta of 0.58. Ares Capital has a 1-year low of $18.26 and a 1-year high of $23.84. The company has a 50 day simple moving average of $20.32 and a two-hundred day simple moving average of $21.22. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.20 and a quick ratio of 2.20.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Tuesday, October 28th. The investment management company reported $0.50 EPS for the quarter, meeting the consensus estimate of $0.50. Ares Capital had a net margin of 45.16% and a return on equity of 10.08%. The firm had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $766.48 million. During the same period last year, the firm earned $0.58 EPS. The company’s revenue was up .9% on a year-over-year basis. Equities analysts forecast that Ares Capital will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th were issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a yield of 9.4%. The ex-dividend date was Monday, December 15th. Ares Capital’s payout ratio is currently 96.00%.

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.