Brokers Issue Forecasts for Ares Capital Co.’s Q3 2024 Earnings (NASDAQ:ARCC)

Ares Capital Co. (NASDAQ:ARCC) – B. Riley decreased their Q3 2024 earnings per share estimates for Ares Capital in a report released on Thursday, May 2nd. B. Riley analyst B. Rowe now anticipates that the investment management company will post earnings per share of $0.57 for the quarter, down from their prior estimate of $0.58. B. Riley currently has a “Neutral” rating and a $21.00 target price on the stock. The consensus estimate for Ares Capital’s current full-year earnings is $2.34 per share.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, May 1st. The investment management company reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). The firm had revenue of $701.00 million for the quarter, compared to analysts’ expectations of $703.85 million. Ares Capital had a net margin of 62.77% and a return on equity of 12.37%. The company’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.56 EPS.

A number of other brokerages have also issued reports on ARCC. Oppenheimer lifted their target price on Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a research report on Thursday. JPMorgan Chase & Co. upped their target price on Ares Capital from $21.50 to $22.00 and gave the company an “overweight” rating in a research report on Thursday. JMP Securities reissued a “market outperform” rating and set a $21.00 price target on shares of Ares Capital in a research report on Tuesday, March 26th. Truist Financial lifted their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Wells Fargo & Company increased their price objective on shares of Ares Capital from $19.00 to $20.00 and gave the company an “equal weight” rating in a research note on Monday, January 29th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $21.43.

Ares Capital Stock Performance

Shares of ARCC stock opened at $20.61 on Monday. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.63 and a quick ratio of 1.24. The company’s fifty day moving average price is $20.42 and its two-hundred day moving average price is $20.07. The firm has a market capitalization of $12.53 billion, a P/E ratio of 7.06 and a beta of 0.99. Ares Capital has a 12 month low of $17.53 and a 12 month high of $21.00.

Ares Capital Announces Dividend

The firm also recently announced 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. The ex-dividend date of this dividend is Friday, June 14th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.32%. Ares Capital’s dividend payout ratio (DPR) is 65.75%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Lewis Asset Management LLC raised its position in shares of Ares Capital by 2.1% during the 1st quarter. Lewis Asset Management LLC now owns 24,805 shares of the investment management company’s stock worth $516,000 after purchasing an additional 500 shares during the period. Chapin Davis Inc. grew its stake in Ares Capital by 2.2% during the 1st quarter. Chapin Davis Inc. now owns 22,966 shares of the investment management company’s stock worth $478,000 after buying an additional 501 shares during the last quarter. Lincoln National Corp increased its position in Ares Capital by 3.0% in the fourth quarter. Lincoln National Corp now owns 17,665 shares of the investment management company’s stock worth $354,000 after buying an additional 520 shares during the period. Baron Financial Group LLC lifted its stake in Ares Capital by 3.0% in the fourth quarter. Baron Financial Group LLC now owns 18,366 shares of the investment management company’s stock valued at $368,000 after buying an additional 543 shares during the last quarter. Finally, Syntal Capital Partners LLC boosted its holdings in shares of Ares Capital by 3.3% during the third quarter. Syntal Capital Partners LLC now owns 17,346 shares of the investment management company’s stock valued at $338,000 after acquiring an additional 551 shares during the period. 27.38% of the stock is owned by institutional investors and hedge funds.

About Ares Capital

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.