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

Shares of Ares Capital Co. (NASDAQ:ARCC) reached a new 52-week high on Tuesday . The company traded as high as $23.22 and last traded at $23.38, with a volume of 18610 shares changing hands. The stock had previously closed at $23.18.

Wall Street Analysts Forecast Growth

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

Ares Capital Trading Up 0.0 %

The stock’s 50-day simple moving average is $22.04 and its two-hundred day simple moving average is $21.34. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a market capitalization of $15.11 billion, a P/E ratio of 8.99 and a beta of 1.00.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.01). Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The business had revenue of $755.00 million during the quarter, compared to analysts’ expectations of $770.45 million. During the same quarter in the previous year, the company posted $0.59 EPS. The company’s quarterly revenue was up 15.3% on a year-over-year basis. Equities research analysts expect that Ares Capital Co. will post 2.36 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 30th. Investors of record on Friday, December 13th were paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 8.21%. The ex-dividend date was Friday, December 13th. Ares Capital’s dividend payout ratio (DPR) is presently 73.85%.

Institutional Investors Weigh In On Ares Capital

Institutional investors have recently added to or reduced their stakes in the stock. Horizon Financial Services LLC bought a new position in shares of Ares Capital during the 3rd quarter valued at approximately $28,000. Blue Trust Inc. raised its stake 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 valued at $52,000 after purchasing an additional 909 shares in the last quarter. Quarry LP bought a new position in Ares Capital during the third quarter valued at $67,000. Centennial Bank AR bought a new position in Ares Capital during the third quarter valued at $102,000. Finally, Avior Wealth Management LLC grew its stake in shares of Ares Capital by 19.6% in the 4th quarter. Avior Wealth Management LLC now owns 4,900 shares of the investment management company’s stock worth $107,000 after buying an additional 803 shares in the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors.

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.