Ares Capital (NASDAQ:ARCC) Hits New 52-Week Low – What’s Next?

Ares Capital Corporation (NASDAQ:ARCC) shares hit a new 52-week low during trading on Friday . The stock traded as low as $17.57 and last traded at $17.5450, with a volume of 4604900 shares traded. The stock had previously closed at $17.92.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. UBS Group dropped their price target on Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a report on Friday, March 13th. Royal Bank Of Canada decreased their target price on Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Monday, February 9th. B. Riley Financial restated a “buy” rating on shares of Ares Capital in a research note on Monday, February 9th. Wall Street Zen cut Ares Capital from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Ares Capital in a research report on Monday, December 29th. Seven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Ares Capital presently has a consensus rating of “Moderate Buy” and an average target price of $21.38.

Ares Capital Stock Down 2.6%

The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70. The firm’s 50-day moving average is $19.17 and its two-hundred day moving average is $19.96. The stock has a market cap of $12.53 billion, a P/E ratio of 9.38 and a beta of 0.59.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.50. The firm had revenue of $793.00 million for the quarter, compared to the consensus estimate of $795.20 million. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The business’s revenue for the quarter was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.55 EPS. On average, equities research analysts anticipate that Ares Capital Corporation will post 2.19 earnings per share for the current year.

Ares Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 11.0%. The ex-dividend date of this dividend is Friday, March 13th. Ares Capital’s dividend payout ratio is 103.23%.

Insider Activity

In other Ares Capital news, CFO Scott C. Lem bought 5,186 shares of the business’s stock in a transaction on Friday, February 6th. The shares were bought at an average cost of $19.29 per share, for a total transaction of $100,037.94. Following the transaction, the chief financial officer owned 39,463 shares in the company, valued at approximately $761,241.27. This trade represents a 15.13% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael Kort Schnabel bought 12,500 shares of Ares Capital stock in a transaction dated Thursday, February 5th. The stock was acquired at an average cost of $19.13 per share, for a total transaction of $239,125.00. Following the purchase, the chief executive officer directly owned 40,500 shares in the company, valued at approximately $774,765. The trade was a 44.64% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.49% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ares Capital

A number of institutional investors and hedge funds have recently modified their holdings of ARCC. City Holding Co. lifted its holdings in Ares Capital by 444.4% in the third quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock valued at $25,000 after buying an additional 1,000 shares during the period. Palladiem LLC acquired a new stake in Ares Capital during the 4th quarter worth $26,000. SWAN Capital LLC acquired a new stake in Ares Capital during the 3rd quarter worth $27,000. Sankala Group LLC bought a new stake in shares of Ares Capital during the 4th quarter valued at $28,000. Finally, NBT Bank N A NY bought a new stake in shares of Ares Capital during the 3rd quarter valued at $31,000. 27.38% of the stock is owned by institutional investors.

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.