Wall Street brokerages expect that Ares Capital Co. (NASDAQ:ARCC) will announce earnings of $0.44 per share for the current quarter, according to Zacks. Seven analysts have issued estimates for Ares Capital’s earnings, with the highest EPS estimate coming in at $0.45 and the lowest estimate coming in at $0.41. Ares Capital reported earnings per share of $0.39 during the same quarter last year, which indicates a positive year-over-year growth rate of 12.8%. The company is scheduled to issue its next quarterly earnings report before the market opens on Tuesday, July 30th.
According to Zacks, analysts expect that Ares Capital will report full-year earnings of $1.79 per share for the current fiscal year, with EPS estimates ranging from $1.75 to $1.83. For the next financial year, analysts expect that the business will report earnings of $1.79 per share, with EPS estimates ranging from $1.72 to $1.88. Zacks’ EPS calculations are a mean average based on a survey of sell-side research firms that that provide coverage for Ares Capital.
Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Tuesday, April 30th. The investment management company reported $0.48 earnings per share for the quarter, topping analysts’ consensus estimates of $0.42 by $0.06. The business had revenue of $373.00 million for the quarter, compared to analysts’ expectations of $337.96 million. Ares Capital had a return on equity of 10.12% and a net margin of 59.58%. During the same quarter in the prior year, the firm posted $0.57 EPS.
Shares of ARCC traded down $0.07 on Friday, reaching $18.18. The stock had a trading volume of 41,606 shares, compared to its average volume of 1,417,535. The stock has a market cap of $7.76 billion, a price-to-earnings ratio of 10.81 and a beta of 0.63. The company has a debt-to-equity ratio of 0.84, a current ratio of 2.47 and a quick ratio of 2.47. The company’s 50-day moving average is $17.95. Ares Capital has a twelve month low of $14.50 and a twelve month high of $18.29.
The business also recently announced a special dividend, which will be paid on Monday, September 30th. Investors of record on Monday, September 16th will be paid a $0.02 dividend. This represents a yield of 9.04%. The ex-dividend date of this dividend is Friday, September 13th. Ares Capital’s payout ratio is currently 95.24%.
In related news, Director Bates Ann Torre bought 9,725 shares of Ares Capital stock in a transaction that occurred on Wednesday, May 15th. The shares were purchased at an average price of $17.61 per share, with a total value of $171,257.25. Following the purchase, the director now owns 24,000 shares in the company, valued at $422,640. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Daniel G. Kelly, Jr. bought 4,500 shares of Ares Capital stock in a transaction that occurred on Monday, June 10th. The stock was bought at an average cost of $18.01 per share, for a total transaction of $81,045.00. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 20,465 shares of company stock worth $361,733. 0.53% of the stock is owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of the stock. NEXT Financial Group Inc lifted its stake in shares of Ares Capital by 40.8% during the 2nd quarter. NEXT Financial Group Inc now owns 5,483 shares of the investment management company’s stock worth $98,000 after purchasing an additional 1,589 shares during the period. Selective Wealth Management Inc. raised its position in shares of Ares Capital by 102.8% in the 2nd quarter. Selective Wealth Management Inc. now owns 43,070 shares of the investment management company’s stock worth $773,000 after buying an additional 21,830 shares during the period. Sound Income Strategies LLC raised its position in shares of Ares Capital by 31.0% in the 2nd quarter. Sound Income Strategies LLC now owns 1,293,009 shares of the investment management company’s stock worth $23,197,000 after buying an additional 306,185 shares during the period. Lantz Financial LLC raised its position in shares of Ares Capital by 2.1% in the 2nd quarter. Lantz Financial LLC now owns 57,190 shares of the investment management company’s stock worth $1,033,000 after buying an additional 1,167 shares during the period. Finally, Canton Hathaway LLC raised its position in shares of Ares Capital by 7.7% in the 2nd quarter. Canton Hathaway LLC now owns 24,280 shares of the investment management company’s stock worth $436,000 after buying an additional 1,740 shares during the period. 37.54% of the stock is currently 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.
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