Ares Capital (NASDAQ:ARCC) Reaches New 52-Week High – Here’s Why

Ares Capital Co. (NASDAQ:ARCC)’s share price reached a new 52-week high on Tuesday . The stock traded as high as $23.22 and last traded at $23.38, with a volume of 18610 shares changing hands. The stock had previously closed at $23.18.

Analyst Ratings Changes

Several brokerages have recently issued reports on ARCC. Wells Fargo & Company raised Ares Capital from an “equal weight” rating to an “overweight” rating in a research report on Thursday, December 12th. StockNews.com upgraded Ares Capital from a “sell” rating to a “hold” rating in a report on Tuesday, November 12th. Finally, B. Riley boosted their target price on shares of Ares Capital from $21.00 to $22.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Three research analysts have rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $22.29.

Ares Capital Trading Up 0.0 %

The stock has a market cap of $15.11 billion, a PE ratio of 8.99 and a beta of 1.00. The firm has a 50-day moving average price of $22.04 and a 200-day moving average price of $21.34. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.29 and a current ratio of 1.29.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by ($0.01). Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The firm had revenue of $755.00 million during the quarter, compared to analysts’ expectations of $770.45 million. During the same period last year, the firm posted $0.59 earnings per share. The firm’s quarterly revenue was up 15.3% on a year-over-year basis. As a group, equities analysts anticipate that Ares Capital Co. will post 2.36 EPS for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 30th. Shareholders of record on Friday, December 13th were paid a dividend of $0.48 per share. The ex-dividend date of this dividend was Friday, December 13th. This represents a $1.92 annualized dividend and a yield of 8.21%. Ares Capital’s dividend payout ratio is 73.85%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. ProShare Advisors LLC raised its position in Ares Capital by 10.6% in the 2nd quarter. ProShare Advisors LLC now owns 49,405 shares of the investment management company’s stock worth $1,030,000 after buying an additional 4,749 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Ares Capital by 26.0% during the second quarter. EverSource Wealth Advisors LLC now owns 11,020 shares of the investment management company’s stock valued at $231,000 after purchasing an additional 2,275 shares during the last quarter. Bank of Montreal Can lifted its position in Ares Capital by 39.7% during the second quarter. Bank of Montreal Can now owns 20,510 shares of the investment management company’s stock valued at $441,000 after purchasing an additional 5,832 shares during the period. Sfmg LLC boosted its holdings in Ares Capital by 1.1% in the second quarter. Sfmg LLC now owns 421,447 shares of the investment management company’s stock worth $8,783,000 after purchasing an additional 4,744 shares during the last quarter. Finally, Cubist Systematic Strategies LLC purchased a new stake in Ares Capital in the second quarter worth approximately $2,083,000. Hedge funds and other institutional investors own 27.38% of the company’s stock.

Ares Capital 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.