Ares Capital Corporation (NASDAQ:ARCC) Receives $20.60 Consensus Price Target from Brokerages

Shares of Ares Capital Corporation (NASDAQ:ARCC) have earned an average recommendation of “Moderate Buy” from the eleven analysts that are presently covering the company, Marketbeat Ratings reports. Three equities research 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 ratings on the stock in the last year is $20.60.

ARCC has been the topic of a number of recent research reports. UBS Group lifted their target price on Ares Capital from $19.00 to $21.00 and gave the stock a “neutral” rating in a report on Tuesday, September 1st. Wall Street Zen raised Ares Capital from a “sell” rating to a “hold” rating in a report on Saturday. Keefe, Bruyette & Woods decreased their price target on Ares Capital from $21.00 to $20.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. JPMorgan Chase & Co. dropped their price target on Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a research note on Thursday, July 2nd. Finally, Wells Fargo & Company restated an “equal weight” rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th.

Ares Capital Stock Down 1.3%

ARCC stock opened at $19.40 on Friday. Ares Capital has a 12 month low of $17.40 and a 12 month high of $21.64. The firm has a market cap of $13.93 billion, a PE ratio of 14.37 and a beta of 0.57. The firm has a 50 day simple moving average of $19.52 and a 200 day simple moving average of $18.89. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The firm had revenue of $768.00 million for the quarter, compared to analyst estimates of $770.19 million. During the same quarter in the previous year, the business posted $0.50 earnings per share. Equities research analysts forecast that Ares Capital will post 1.91 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 9.9%. The ex-dividend date of this dividend is Tuesday, September 15th. Ares Capital’s dividend payout ratio (DPR) is 142.22%.

Hedge Funds Weigh In On Ares Capital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Orion Capital Management LLC purchased a new stake in shares of Ares Capital in the second quarter valued at $25,000. Palladiem LLC purchased a new stake in Ares Capital in the 4th quarter worth about $26,000. Sankala Group LLC purchased a new position in Ares Capital during the 4th quarter valued at about $28,000. Continuum Advisory LLC acquired a new position in shares of Ares Capital in the 2nd quarter valued at about $30,000. Finally, TOP Private Wealth LLC. acquired a new position in shares of Ares Capital in the 2nd quarter valued at about $31,000. Institutional investors and hedge funds own 27.38% of the company’s stock.

Ares Capital Company Profile

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company invests primarily in privately originated loans and other debt investments, helping businesses fund acquisitions, recapitalizations, refinancings, growth initiatives and other corporate purposes.

Its investment portfolio generally includes senior secured loans, subordinated debt and mezzanine financing, along with selected equity investments. Ares Capital focuses on companies with established operations across a variety of industries and typically works with private equity sponsors, management teams and other financial partners.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of global alternative investment manager Ares Management Corporation.