Ares Capital (NASDAQ:ARCC) Releases Quarterly Earnings Results, Hits Expectations

Ares Capital (NASDAQ:ARCC) released its earnings results on Tuesday. The investment management company reported $0.50 EPS for the quarter, hitting the consensus estimate of $0.50, Zacks reports. Ares Capital had a net margin of 45.16% and a return on equity of 10.20%. The firm had revenue of $658.00 million for the quarter, compared to the consensus estimate of $766.48 million. During the same quarter in the previous year, the firm earned $0.58 earnings per share. The company’s quarterly revenue was up .9% compared to the same quarter last year.

Ares Capital Stock Up 0.2%

Shares of NASDAQ:ARCC opened at $20.61 on Thursday. The company has a market cap of $14.54 billion, a price-to-earnings ratio of 10.31 and a beta of 0.68. Ares Capital has a 12 month low of $18.26 and a 12 month high of $23.84. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 1.01. The company has a 50-day moving average price of $20.96 and a 200 day moving average price of $21.55.

Ares Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 30th. Investors of record on Monday, December 15th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Monday, December 15th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.3%. Ares Capital’s dividend payout ratio (DPR) is presently 93.66%.

Analyst Upgrades and Downgrades

ARCC has been the subject of several research analyst reports. Wells Fargo & Company cut their target price on shares of Ares Capital from $23.00 to $21.00 and set an “overweight” rating for the company in a research note on Wednesday. Weiss Ratings reissued a “buy (b)” rating on shares of Ares Capital in a report on Wednesday, October 8th. Keefe, Bruyette & Woods reduced their target price on Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Wednesday. UBS Group decreased their target price on Ares Capital from $22.50 to $21.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 14th. Finally, Capital One Financial set a $22.50 price target on Ares Capital in a research note on Friday, October 10th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Ares Capital currently has a consensus rating of “Moderate Buy” and a consensus target price of $22.25.

Institutional Investors Weigh In On Ares Capital

Institutional investors have recently modified their holdings of the stock. Advisory Services Network LLC increased its position in shares of Ares Capital by 2.7% during the 2nd quarter. Advisory Services Network LLC now owns 51,992 shares of the investment management company’s stock valued at $1,177,000 after purchasing an additional 1,352 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Ares Capital by 15.1% during the second quarter. Geneos Wealth Management Inc. now owns 58,430 shares of the investment management company’s stock worth $1,283,000 after buying an additional 7,651 shares during the period. CANADA LIFE ASSURANCE Co boosted its stake in Ares Capital by 3.6% during the second quarter. CANADA LIFE ASSURANCE Co now owns 458,074 shares of the investment management company’s stock worth $10,077,000 after buying an additional 16,081 shares during the period. DCM Advisors LLC increased its position in Ares Capital by 4.0% during the second quarter. DCM Advisors LLC now owns 23,348 shares of the investment management company’s stock valued at $471,000 after acquiring an additional 905 shares during the last quarter. Finally, Blue Chip Partners LLC purchased a new stake in shares of Ares Capital in the second quarter valued at $204,000. 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.