Brokerages Set Ares Capital Corporation (NASDAQ:ARCC) Price Target at $20.60

Ares Capital Corporation (NASDAQ:ARCC) has been given a consensus rating of “Moderate Buy” by the eleven brokerages that are currently covering the company, Marketbeat Ratings reports. Three analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $20.60.

A number of brokerages have recently weighed in on ARCC. Oppenheimer dropped their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research note on Wednesday, April 29th. Keefe, Bruyette & Woods cut their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Thursday, April 16th. Truist Financial decreased their target price on Ares Capital from $23.00 to $22.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. JPMorgan Chase & Co. lowered their target price on Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Finally, Royal Bank Of Canada dropped their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating for the company in a research report on Wednesday, April 29th.

Ares Capital Stock Performance

NASDAQ:ARCC opened at $18.78 on Friday. Ares Capital has a fifty-two week low of $17.40 and a fifty-two week high of $23.15. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.40 and a current ratio of 1.40. The company has a 50 day moving average price of $18.66 and a 200 day moving average price of $18.95. The stock has a market capitalization of $13.48 billion, a P/E ratio of 11.52 and a beta of 0.56.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Tuesday, April 28th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01). Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The firm had revenue of $763.00 million during the quarter, compared to analysts’ expectations of $778.00 million. During the same period in the previous year, the firm earned $0.50 EPS. The firm’s revenue for the quarter was up 4.2% compared to the same quarter last year. Equities research analysts forecast that Ares Capital will post 1.9 EPS for the current year.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were paid a $0.48 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $1.92 annualized dividend and a dividend yield of 10.2%. Ares Capital’s dividend payout ratio (DPR) is presently 117.79%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Roman Butler Fullerton & Co. lifted its holdings in Ares Capital by 1.9% during the 1st quarter. Roman Butler Fullerton & Co. now owns 27,713 shares of the investment management company’s stock worth $504,000 after buying an additional 528 shares in the last quarter. First Citizens Bank & Trust Co. boosted its position in Ares Capital by 5.3% in the 4th quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock valued at $213,000 after buying an additional 532 shares during the period. Perigon Wealth Management LLC grew its stake in shares of Ares Capital by 1.6% in the fourth quarter. Perigon Wealth Management LLC now owns 34,700 shares of the investment management company’s stock worth $702,000 after acquiring an additional 547 shares in the last quarter. Diversify Advisory Services LLC grew its stake in shares of Ares Capital by 2.0% in the fourth quarter. Diversify Advisory Services LLC now owns 28,186 shares of the investment management company’s stock worth $589,000 after acquiring an additional 563 shares in the last quarter. Finally, CWS Financial Advisors LLC increased its position in shares of Ares Capital by 4.0% during the first quarter. CWS Financial Advisors LLC now owns 14,956 shares of the investment management company’s stock worth $270,000 after acquiring an additional 582 shares during the period. Institutional investors and hedge funds own 27.38% of the company’s stock.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.