Ares Capital (NASDAQ:ARCC) Hits New 1-Year High – Here’s What Happened

Ares Capital Co. (NASDAQ:ARCC)’s share price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $22.11 and last traded at $22.11, with a volume of 15877 shares changing hands. The stock had previously closed at $22.02.

Analyst Ratings Changes

Several equities analysts recently commented on ARCC shares. Compass Point raised shares of Ares Capital to a “strong-buy” rating in a report on Tuesday, July 30th. JMP Securities raised their price objective on Ares Capital from $21.00 to $22.00 and gave the company a “market outperform” rating in a research note on Tuesday, July 30th. B. Riley boosted their target price on Ares Capital from $21.00 to $22.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. UBS Group upgraded Ares Capital to a “hold” rating in a research report on Friday, August 23rd. Finally, Royal Bank of Canada reaffirmed an “outperform” rating and issued a $22.00 price target on shares of Ares Capital in a research note on Monday, August 5th. Four investment analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $21.86.

Ares Capital Stock Performance

The business has a fifty day moving average of $21.22 and a 200-day moving average of $21.04. The company has a market cap of $14.30 billion, a PE ratio of 8.47 and a beta of 1.01. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 1.06.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data 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). Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The company had revenue of $755.00 million during the quarter, compared to the consensus estimate of $770.45 million. During the same quarter last year, the company posted $0.59 earnings per share. The firm’s revenue for the quarter was up 15.3% compared to the same quarter last year. Equities research analysts anticipate that Ares Capital Co. will post 2.36 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 30th. Stockholders of record on Friday, December 13th will be issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.68%. The ex-dividend date of this dividend is Friday, December 13th. Ares Capital’s dividend payout ratio (DPR) is presently 73.85%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Jamison Private Wealth Management Inc. grew its holdings in Ares Capital by 62.7% in the second quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock worth $26,000 after purchasing an additional 475 shares during the period. Asset Dedication LLC bought a new position in Ares Capital during the 2nd quarter valued at approximately $26,000. Horizon Financial Services LLC purchased a new position in Ares Capital during the third quarter valued at $28,000. Hobbs Group Advisors LLC purchased a new stake in shares of Ares Capital in the second quarter worth $32,000. Finally, nVerses Capital LLC increased its holdings in shares of Ares Capital by 88.9% during the second quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company’s stock valued at $35,000 after acquiring an additional 800 shares in the last quarter. 27.38% of the stock is currently owned by institutional investors.

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.