Ares Capital (NASDAQ:ARCC) Sets New 12-Month High – Here’s Why

Ares Capital Co. (NASDAQ:ARCC)’s stock price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $22.44 and last traded at $22.27, with a volume of 4963648 shares. The stock had previously closed at $22.21.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. UBS Group raised shares of Ares Capital to a “hold” rating in a research note on Friday, August 23rd. Wells Fargo & Company raised Ares Capital from an “equal weight” rating to an “overweight” rating and set a $23.00 target price on the stock in a research note on Monday, December 2nd. StockNews.com raised Ares Capital from a “sell” rating to a “hold” rating in a research report on Tuesday, November 12th. Finally, B. Riley increased their price target on shares of Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Three equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $22.29.

Ares Capital Stock Performance

The company has a market capitalization of $14.39 billion, a PE ratio of 8.57 and a beta of 1.01. The stock’s 50-day simple moving average is $21.52 and its 200 day simple moving average is $21.10. 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 announced its quarterly earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.01). Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The business had revenue of $755.00 million for the quarter, compared to analysts’ expectations of $770.45 million. During the same period last year, the firm earned $0.59 earnings per share. The firm’s quarterly revenue was up 15.3% on a year-over-year basis. As a group, research analysts expect that Ares Capital Co. will post 2.36 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Stockholders of record on Friday, December 13th will be given a dividend of $0.48 per share. The ex-dividend date is Friday, December 13th. This represents a $1.92 annualized dividend and a dividend yield of 8.62%. Ares Capital’s dividend payout ratio is presently 73.85%.

Hedge Funds Weigh In On Ares Capital

Several hedge funds have recently made changes to their positions in ARCC. JBR Co Financial Management Inc grew its stake in shares of Ares Capital by 1.5% in the 3rd quarter. JBR Co Financial Management Inc now owns 33,047 shares of the investment management company’s stock valued at $692,000 after purchasing an additional 500 shares during the last quarter. Onyx Bridge Wealth Group LLC increased its stake in Ares Capital by 1.2% in the 3rd quarter. Onyx Bridge Wealth Group LLC now owns 43,609 shares of the investment management company’s stock valued at $913,000 after buying an additional 531 shares during the period. Centaurus Financial Inc. raised its position in Ares Capital by 3.9% during the 2nd quarter. Centaurus Financial Inc. now owns 14,428 shares of the investment management company’s stock worth $301,000 after buying an additional 542 shares during the last quarter. Western Financial Corp CA lifted its stake in shares of Ares Capital by 2.3% in the 3rd quarter. Western Financial Corp CA now owns 25,823 shares of the investment management company’s stock worth $541,000 after acquiring an additional 579 shares during the period. Finally, Sequoia Financial Advisors LLC boosted its holdings in shares of Ares Capital by 6.2% in the third quarter. Sequoia Financial Advisors LLC now owns 10,842 shares of the investment management company’s stock valued at $227,000 after acquiring an additional 629 shares in the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

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.