Ares Capital (NASDAQ:ARCC) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Ares Capital (NASDAQ:ARCC) released its quarterly earnings data on Tuesday. The investment management company reported $0.61 earnings per share for the quarter, beating analysts’ consensus estimates of $0.58 by $0.03, Briefing.com reports. Ares Capital had a net margin of 62.77% and a return on equity of 12.37%. The business had revenue of $755.00 million during the quarter, compared to analyst estimates of $714.27 million. During the same period last year, the business earned $0.58 EPS.

Ares Capital Price Performance

ARCC traded down $0.34 during trading hours on Wednesday, hitting $20.94. The company’s stock had a trading volume of 4,454,810 shares, compared to its average volume of 3,422,751. The stock has a market cap of $12.87 billion, a price-to-earnings ratio of 7.17 and a beta of 1.01. The business’s 50-day moving average price is $21.05 and its 200-day moving average price is $20.66. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 0.99. Ares Capital has a 12 month low of $18.55 and a 12 month high of $21.84.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 30th. Investors of record on Friday, September 13th will be issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.17%. The ex-dividend date of this dividend is Friday, September 13th. Ares Capital’s dividend payout ratio (DPR) is presently 65.75%.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on ARCC shares. Royal Bank of Canada restated an “outperform” rating and issued a $22.00 price objective on shares of Ares Capital in a report on Thursday, May 23rd. JMP Securities boosted their price target on Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a research note on Tuesday. JPMorgan Chase & Co. increased their price objective on Ares Capital from $21.50 to $22.00 and gave the company an “overweight” rating in a research report on Thursday, May 2nd. Truist Financial boosted their target price on Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a research report on Thursday, May 2nd. Finally, Oppenheimer raised their price target on shares of Ares Capital from $21.00 to $22.00 and gave the company an “outperform” rating in a report on Thursday, May 2nd. Three analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $21.71.

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.