Analysts Set Ares Capital Co. (NASDAQ:ARCC) Price Target at $20.60

Ares Capital Co. (NASDAQ:ARCCGet Free Report) has been given an average recommendation of “Moderate Buy” by the four brokerages that are presently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and two have given a buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $20.60.

ARCC has been the subject of a number of analyst reports. B. Riley lowered Ares Capital from a “buy” rating to a “neutral” rating and set a $21.00 price objective for the company. in a research note on Monday, January 8th. JPMorgan Chase & Co. increased their price objective on Ares Capital from $20.50 to $21.00 and gave the company an “overweight” rating in a research note on Wednesday, October 25th. Finally, Wells Fargo & Company increased their price objective on Ares Capital from $19.00 to $20.00 and gave the company an “equal weight” rating in a research note on Monday, January 29th.

Check Out Our Latest Report on ARCC

Ares Capital Stock Up 1.3 %

ARCC stock opened at $20.19 on Monday. The company has a current ratio of 1.62, a quick ratio of 1.62 and a debt-to-equity ratio of 1.07. The company’s 50 day moving average is $20.10 and its 200 day moving average is $19.64. The stock has a market cap of $11.50 billion, a price-to-earnings ratio of 8.74 and a beta of 1.01. Ares Capital has a 1-year low of $16.95 and a 1-year high of $20.65.

Ares Capital (NASDAQ:ARCCGet Free Report) last issued its quarterly earnings results on Wednesday, February 7th. The investment management company reported $0.63 EPS for the quarter, beating analysts’ consensus estimates of $0.60 by $0.03. Ares Capital had a net margin of 50.37% and a return on equity of 12.78%. The business had revenue of $707.00 million for the quarter, compared to analysts’ expectations of $669.78 million. During the same period last year, the business earned $0.68 earnings per share. The business’s quarterly revenue was up 10.5% on a year-over-year basis. Sell-side analysts predict that Ares Capital will post 2.34 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 29th. Stockholders of record on Friday, March 15th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 9.51%. Ares Capital’s payout ratio is presently 83.12%.

Hedge Funds Weigh In On Ares Capital

Several institutional investors and hedge funds have recently modified their holdings of the stock. D.B. Root & Company LLC bought a new stake in Ares Capital in the 3rd quarter worth about $1,260,000. Allspring Global Investments Holdings LLC increased its holdings in Ares Capital by 29.8% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 241,231 shares of the investment management company’s stock worth $4,697,000 after buying an additional 55,386 shares in the last quarter. D.A. Davidson & CO. grew its stake in shares of Ares Capital by 19.3% during the 3rd quarter. D.A. Davidson & CO. now owns 729,271 shares of the investment management company’s stock valued at $14,199,000 after purchasing an additional 117,953 shares during the period. Nomura Asset Management Co. Ltd. grew its stake in shares of Ares Capital by 4.5% during the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 1,378,882 shares of the investment management company’s stock valued at $26,847,000 after purchasing an additional 59,808 shares during the period. Finally, SS&H Financial Advisors Inc. bought a new stake in shares of Ares Capital during the 3rd quarter valued at about $262,000. 29.32% of the stock is currently owned by institutional investors.

Ares Capital Company Profile

(Get Free Report

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.

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