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

Ares Capital (NASDAQ:ARCC) posted its earnings results on Wednesday. The investment management company reported $0.55 earnings per share for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.03), Zacks reports. Ares Capital had a return on equity of 12.06% and a net margin of 53.71%.

Ares Capital Trading Down 4.7 %

ARCC stock traded down $1.12 during mid-day trading on Wednesday, reaching $22.70. The company’s stock had a trading volume of 4,684,182 shares, compared to its average volume of 4,213,276. Ares Capital has a 12 month low of $19.32 and a 12 month high of $23.84. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 1.06. The business’s 50 day moving average price is $22.35 and its 200 day moving average price is $21.49. The company has a market cap of $14.66 billion, a price-to-earnings ratio of 8.71 and a beta of 1.01.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 14th will be given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 8.46%. Ares Capital’s payout ratio is 73.85%.

Wall Street Analysts Forecast Growth

ARCC has been the topic of a number of recent research reports. JPMorgan Chase & Co. lifted their price target on shares of Ares Capital from $23.00 to $24.50 and gave the stock an “overweight” rating in a report on Monday. StockNews.com upgraded Ares Capital from a “sell” rating to a “hold” rating in a research report on Tuesday, November 12th. Wells Fargo & Company increased their price target on Ares Capital from $23.00 to $24.00 and gave the company an “overweight” rating in a research note on Wednesday, January 29th. Finally, B. Riley lifted their price objective on Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Three research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $22.79.

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.