Ares Capital (NASDAQ:ARCC) Shares Up 0.5% – What’s Next?

Ares Capital Co. (NASDAQ:ARCC) shares shot up 0.5% during mid-day trading on Thursday . The company traded as high as $22.33 and last traded at $22.35. 356,851 shares were traded during mid-day trading, a decline of 90% from the average session volume of 3,699,176 shares. The stock had previously closed at $22.23.

Analyst Ratings Changes

ARCC has been the subject of several recent analyst reports. JPMorgan Chase & Co. raised their price objective on shares of Ares Capital from $23.00 to $24.50 and gave the company an “overweight” rating in a research note on Monday, February 3rd. Keefe, Bruyette & Woods lifted their price target on shares of Ares Capital from $22.00 to $23.00 and gave the company an “outperform” rating in a research report on Friday, February 7th. Wells Fargo & Company lowered their price target on Ares Capital from $24.00 to $23.00 and set an “overweight” rating on the stock in a report on Thursday, February 6th. Raymond James cut Ares Capital from an “outperform” rating to a “market perform” rating in a report on Thursday, February 6th. Finally, Royal Bank of Canada boosted their target price on Ares Capital from $23.00 to $24.00 and gave the stock an “outperform” rating in a research report on Friday, February 7th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $22.94.

Ares Capital Stock Performance

The firm has a market cap of $15.15 billion, a price-to-earnings ratio of 9.07 and a beta of 1.00. The business has a 50 day moving average of $22.84 and a 200 day moving average of $21.95. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 1.03.

Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, February 5th. The investment management company reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.58 by ($0.03). Ares Capital had a return on equity of 11.54% and a net margin of 50.90%. On average, research analysts forecast that Ares Capital Co. will post 2.19 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Friday, March 14th will be issued a $0.48 dividend. The ex-dividend date is Friday, March 14th. This represents a $1.92 annualized dividend and a yield of 8.64%. Ares Capital’s dividend payout ratio (DPR) is presently 78.37%.

Hedge Funds Weigh In On Ares Capital

Several large investors have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Ares Capital by 14.5% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 305,583 shares of the investment management company’s stock worth $6,689,000 after acquiring an additional 38,624 shares during the period. Palogic Value Management L.P. increased its position in Ares Capital by 5.0% during the fourth quarter. Palogic Value Management L.P. now owns 104,565 shares of the investment management company’s stock worth $2,289,000 after purchasing an additional 4,970 shares during the last quarter. Sculati Wealth Management LLC raised its stake in Ares Capital by 2.3% during the fourth quarter. Sculati Wealth Management LLC now owns 111,642 shares of the investment management company’s stock worth $2,444,000 after purchasing an additional 2,487 shares during the period. Integrated Advisors Network LLC purchased a new position in Ares Capital during the fourth quarter worth approximately $308,000. Finally, United Advisor Group LLC boosted its holdings in shares of Ares Capital by 0.7% in the 4th quarter. United Advisor Group LLC now owns 102,316 shares of the investment management company’s stock valued at $2,240,000 after purchasing an additional 725 shares during the last quarter. 27.38% of the stock is currently owned by hedge funds and other 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.