In yesterday’s Wall Street session, Ares Capital Corporation (NASDAQ:ARCC) shares traded at $19.07, down -0.05% from the previous session.
As of this writing, 15 analysts cover Ares Capital Corporation (NASDAQ:ARCC). The consensus rating among analysts is ‘Buy’. As we calculate the median target price by taking the range between a high of $24.00 and a low of $18.00, we find $20.00. Given the previous closing price of $19.08, this indicates a potential upside of 4.82 percent. ARCC stock price is now 4.07% away from the 50-day moving average and 1.63% away from the 200-day moving average. The market capitalization of the company currently stands at $10.39B.
There are 2 analysts who have given it a hold rating, whereas 12 have given it a buy rating. Brokers who have rated the stock have averaged $20.43 as their price target over the next twelve months.
With the price target reduced from $20 to $18, Wells Fargo Downgraded its rating from Overweight to Equal Weight for Ares Capital Corporation (NASDAQ: ARCC).
In other news, SCHNABEL MICHAEL KORT, Co-President bought 15,000 shares of the company’s stock on May 02. The stock was bought for $267,600 at an average price of $17.84. Upon completion of the transaction, the Co-President now directly owns 15,000 shares in the company, valued at $0.29 million. An SEC document containing details of the transaction can be found on the SEC’s website. On Mar 16, Chief Financial Officer ROLL PENELOPE F bought 3,000 shares of the business’s stock. A total of $52,320 was incurred on buying the stock at an average price of $17.44. This leaves the insider owning 60,500 shares of the company worth $1.15 million. A total of 1.38% of the company’s stock is owned by insiders.
There have been several recent changes in the stakes of large investors in ARCC stock. A new stake in Ares Capital Corporation shares was purchased by FARMER STEVEN PATRICK during the first quarter worth $84,346,000. CINCTIVE CAPITAL MANAGEMENT LP invested $7,110,000 in shares of ARCC during the first quarter. In the first quarter, PARALLAX VOLATILITY ADVISERS, L.P. acquired a new stake in Ares Capital Corporation valued at approximately $6,484,000. JANUS HENDERSON GROUP PLC acquired a new stake in ARCC for approximately $3,315,000. CUBIST SYSTEMATIC STRATEGIES, LLC purchased a new stake in ARCC valued at around $2,981,000 in the second quarter. In total, there are 716 active investors with 31.45% ownership of the company’s stock.
Tuesday morning saw Ares Capital Corporation (NASDAQ: ARCC) opened at $19.08. During the past 12 months, Ares Capital Corporation has had a low of $16.51 and a high of $20.69. The fifty day moving average price for ARCC is $18.36 and a two-hundred day moving average price translates $18.77 for the stock.
The latest earnings results from Ares Capital Corporation (NASDAQ: ARCC) was released for Mar, 2023. According to the Asset Management Company, earnings per share came in at $0.57, missing analysts’ expectations of $0.59 by -0.02. This compares to $0.43 EPS in the same period last year. The company reported revenue of $618.0 million for the quarter, compared to $440.0 million a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue rose 40.45 percent. For the current quarter, analysts expect ARCC to generate $621.81M in revenue.
Moreover, the firm recently paid out its quarterly dividend on 06/30/2023. Investors who held shares on 06/15/2023 were paid a $0.48 dividend. On an annualized basis, this represents a $1.92 dividend and a 10.07% percent yield. There was an ex-dividend date of 06/14/2023 for this dividend. In terms of dividend payout ratio, ARCC is presently at 156.83%.
Ares Capital Corporation(ARCC) 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. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.