Ares Capital Corporation (NASDAQ:ARCC) Given Consensus Rating of “Moderate Buy” by Brokerages

Ares Capital Corporation (NASDAQ:ARCC) has earned an average recommendation of “Moderate Buy” from the eleven brokerages that are currently covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $20.40.

ARCC has been the topic of a number of analyst reports. Wells Fargo & Company reiterated an “equal weight” rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a research note on Friday, June 12th. Oppenheimer decreased their target price on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th. Royal Bank Of Canada lowered their price target on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a report on Wednesday, April 29th. B. Riley Financial dropped their price target on shares of Ares Capital from $22.00 to $20.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a report on Thursday, July 2nd.

Ares Capital Price Performance

ARCC stock opened at $20.05 on Tuesday. The firm has a market cap of $14.40 billion, a P/E ratio of 14.85 and a beta of 0.56. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.28 and a current ratio of 1.28. Ares Capital has a 1 year low of $17.40 and a 1 year high of $22.51. The stock has a 50-day simple moving average of $18.96 and a 200-day simple moving average of $18.82.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, hitting the consensus estimate of $0.47. The firm had revenue of $768.00 million for the quarter, compared to analyst estimates of $770.19 million. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.During the same period in the previous year, the company posted $0.50 EPS. On average, equities analysts predict that Ares Capital will post 1.91 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.6%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital’s payout ratio is presently 142.22%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Orion Capital Management LLC purchased a new stake in Ares Capital during the 2nd quarter worth approximately $25,000. Palladiem LLC acquired a new position in shares of Ares Capital in the 4th quarter valued at approximately $26,000. SWAN Capital LLC purchased a new position in shares of Ares Capital during the 3rd quarter valued at approximately $27,000. Sankala Group LLC purchased a new position in shares of Ares Capital during the 4th quarter valued at approximately $28,000. Finally, Continuum Advisory LLC purchased a new position in shares of Ares Capital during the 2nd quarter valued at approximately $30,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.