Ares Capital (NASDAQ:ARCC) Sets New 1-Year High – What’s Next?

Ares Capital Co. (NASDAQ:ARCC) reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $23.53 and last traded at $23.46, with a volume of 365268 shares. The stock had previously closed at $23.30.

Wall Street Analyst Weigh In

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

Ares Capital Trading Up 0.7 %

The firm has a market cap of $15.15 billion, a P/E ratio of 9.01 and a beta of 1.00. The company has a 50 day moving average of $22.15 and a 200 day moving average of $21.39. 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 EPS for the quarter, missing the consensus estimate of $0.59 by ($0.01). The firm had revenue of $755.00 million during the quarter, compared to the consensus estimate of $770.45 million. Ares Capital had a net margin of 53.71% and a return on equity of 12.06%. The company’s quarterly revenue was up 15.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.59 EPS. Analysts predict that Ares Capital Co. will post 2.36 EPS for the current fiscal year.

Ares Capital Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 30th. Investors of record on Friday, December 13th were paid a $0.48 dividend. The ex-dividend date of this dividend was Friday, December 13th. This represents a $1.92 annualized dividend and a dividend yield of 8.19%. Ares Capital’s payout ratio is 73.85%.

Institutional Investors Weigh In On Ares Capital

Several large investors have recently made changes to their positions in ARCC. Horizon Financial Services LLC bought a new stake in Ares Capital during the third quarter worth approximately $28,000. Blue Trust Inc. boosted its position in Ares Capital by 56.8% during the third quarter. Blue Trust Inc. now owns 2,510 shares of the investment management company’s stock worth $52,000 after purchasing an additional 909 shares during the period. Quarry LP bought a new stake in Ares Capital during the third quarter worth approximately $67,000. Centennial Bank AR bought a new stake in Ares Capital during the third quarter worth approximately $102,000. Finally, Avior Wealth Management LLC boosted its position in Ares Capital by 19.6% during the fourth quarter. Avior Wealth Management LLC now owns 4,900 shares of the investment management company’s stock worth $107,000 after purchasing an additional 803 shares during the period. 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.