Ares Capital (NASDAQ:ARCC) Announces Quarterly Earnings Results

Ares Capital (NASDAQ:ARCC) announced its earnings results on Wednesday. The investment management company reported $0.58 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.01), Briefing.com reports. Ares Capital had a return on equity of 12.31% and a net margin of 53.71%. The business had revenue of $755.00 million for the quarter, compared to analyst estimates of $770.45 million. During the same period in the previous year, the company earned $0.59 earnings per share. The company’s quarterly revenue was up 15.3% compared to the same quarter last year.

Ares Capital Stock Down 0.7 %

NASDAQ ARCC opened at $21.00 on Friday. The business’s fifty day simple moving average is $21.00 and its 200-day simple moving average is $20.94. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.05. The firm has a market cap of $13.24 billion, a PE ratio of 8.08 and a beta of 1.01. Ares Capital has a 52 week low of $19.24 and a 52 week high of $22.05.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Friday, December 13th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, December 13th. This represents a $1.92 dividend on an annualized basis and a yield of 9.14%. Ares Capital’s payout ratio is 73.85%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on ARCC. Compass Point raised shares of Ares Capital to a “strong-buy” rating in a report on Tuesday, July 30th. UBS Group raised shares of Ares Capital to a “hold” rating in a research note on Friday, August 23rd. B. Riley boosted 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. Royal Bank of Canada reissued an “outperform” rating and set a $22.00 target price on shares of Ares Capital in a report on Monday, August 5th. Finally, 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 report on Tuesday, July 30th. Three equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $21.86.

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.