Ares Capital Corporation (NASDAQ:ARCC) Stock Rated “Moderate Buy” by Sell-Side Analysts

Shares of Ares Capital Corporation (NASDAQ:ARCC) have been given an average rating of “Moderate Buy” by the eleven analysts that are covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and nine have given a buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $20.39.

Several research firms recently issued reports on ARCC. UBS Group upgraded Ares Capital from a “neutral” rating to a “buy” rating and set a $21.00 price objective on the stock in a report on Thursday, October 29th. Citigroup reissued a “market outperform” rating on shares of Ares Capital in a research report on Wednesday, October 28th. Keefe, Bruyette & Woods reduced their price target on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. Truist Financial lowered their price objective on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Finally, Wall Street Zen cut shares of Ares Capital from a “hold” rating to a “sell” rating in a report on Saturday, October 31st.

Hedge Funds Weigh In On Ares Capital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bank of America Corp DE acquired a new stake in shares of Ares Capital during the 2nd quarter worth about $165,569,000. Legal & General Group Plc acquired a new position in Ares Capital in the second quarter valued at approximately $120,538,000. Advisors Capital Management LLC acquired a new position in Ares Capital in the second quarter valued at approximately $63,140,000. OMERS ADMINISTRATION Corp purchased a new position in Ares Capital in the second quarter valued at approximately $53,867,000. Finally, BlackRock Inc. purchased a new position in Ares Capital in the second quarter valued at approximately $45,339,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital Trading Down 0.6%

Shares of Ares Capital stock opened at $19.35 on Friday. The stock has a 50 day moving average of $19.17 and a 200 day moving average of $19.00. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market capitalization of $13.97 billion, a price-to-earnings ratio of 15.86 and a beta of 0.60. Ares Capital has a fifty-two week low of $17.40 and a fifty-two week high of $21.14.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Tuesday, October 27th. The investment management company reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.02). Ares Capital had a net margin of 28.34% and a return on equity of 9.72%. The company had revenue of $763.00 million during the quarter, compared to analysts’ expectations of $776.34 million. During the same quarter last year, the firm posted $0.50 earnings per share. The firm’s quarterly revenue was down 2.4% on a year-over-year basis. As a group, research analysts predict that Ares Capital will post 1.88 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, December 29th. Shareholders of record on Tuesday, December 15th will be issued a dividend of $0.48 per share. The ex-dividend date is Tuesday, December 15th. This represents a $1.92 dividend on an annualized basis and a yield of 9.9%. Ares Capital’s dividend payout ratio is 157.38%.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.