Ares Capital Co. (NASDAQ:ARCC) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Ares Capital Co. (NASDAQ:ARCC) have been given an average rating of “Moderate Buy” by the eleven brokerages that are currently covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $22.94.

Several research firms have recently weighed in on ARCC. Royal Bank of Canada boosted their target price on Ares Capital from $23.00 to $24.00 and gave the company an “outperform” rating in a report on Friday, February 7th. StockNews.com downgraded Ares Capital from a “hold” rating to a “sell” rating in a report on Friday, February 7th. JPMorgan Chase & Co. boosted their target price on Ares Capital from $23.00 to $24.50 and gave the company an “overweight” rating in a report on Monday, February 3rd. Wells Fargo & Company reduced their price objective on Ares Capital from $24.00 to $23.00 and set an “overweight” rating for the company in a research note on Thursday, February 6th. Finally, Keefe, Bruyette & Woods upped their price objective on Ares Capital from $22.00 to $23.00 and gave the company an “outperform” rating in a research note on Friday, February 7th.

Ares Capital Stock Up 1.7 %

Shares of NASDAQ ARCC opened at $21.65 on Tuesday. The company has a market capitalization of $14.76 billion, a price-to-earnings ratio of 8.84 and a beta of 1.00. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.21 and a quick ratio of 1.21. The business has a 50-day moving average of $22.87 and a two-hundred day moving average of $21.91. Ares Capital has a 1 year low of $19.32 and a 1 year high of $23.84.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, February 5th. The investment management company reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.58 by ($0.03). Ares Capital had a net margin of 50.90% and a return on equity of 11.54%. On average, analysts forecast that Ares Capital will post 2.19 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, March 31st. Shareholders 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 yield of 8.87%. The ex-dividend date is Friday, March 14th. Ares Capital’s payout ratio is 78.37%.

Hedge Funds Weigh In On Ares Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cyndeo Wealth Partners LLC increased its position in Ares Capital by 2.3% during the 4th quarter. Cyndeo Wealth Partners LLC now owns 19,148 shares of the investment management company’s stock worth $419,000 after purchasing an additional 430 shares during the period. World Investment Advisors grew its holdings in shares of Ares Capital by 4.1% in the 4th quarter. World Investment Advisors now owns 12,521 shares of the investment management company’s stock worth $274,000 after acquiring an additional 488 shares during the period. Fiduciary Group LLC grew its holdings in shares of Ares Capital by 2.3% in the 4th quarter. Fiduciary Group LLC now owns 21,851 shares of the investment management company’s stock worth $478,000 after acquiring an additional 500 shares during the period. Sheaff Brock Investment Advisors LLC grew its holdings in shares of Ares Capital by 0.9% in the 4th quarter. Sheaff Brock Investment Advisors LLC now owns 56,182 shares of the investment management company’s stock worth $1,230,000 after acquiring an additional 512 shares during the period. Finally, Western Financial Corp CA grew its holdings in shares of Ares Capital by 2.2% in the 4th quarter. Western Financial Corp CA now owns 26,387 shares of the investment management company’s stock worth $578,000 after acquiring an additional 564 shares during the period. Institutional investors and hedge funds own 27.38% of the company’s stock.

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.