B. Riley Research Analysts Lower Earnings Estimates for Ares Capital Co. (NASDAQ:ARCC)

Ares Capital Co. (NASDAQ:ARCC) – Stock analysts at B. Riley dropped their Q3 2024 earnings estimates for shares of Ares Capital in a research note issued on Thursday, May 2nd. B. Riley analyst B. Rowe now expects that the investment management company will post earnings of $0.57 per share for the quarter, down from their prior forecast of $0.58. The consensus estimate for Ares Capital’s current full-year earnings is $2.34 per share.

ARCC has been the topic of several other research reports. JMP Securities reaffirmed a “market outperform” rating and issued a $21.00 price target on shares of Ares Capital in a report on Tuesday, March 26th. Truist Financial upped their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a report on Thursday, May 2nd. JPMorgan Chase & Co. upped their target price on shares of Ares Capital from $21.50 to $22.00 and gave the stock an “overweight” rating in a research report on Thursday, May 2nd. Oppenheimer increased their price objective on Ares Capital from $21.00 to $22.00 and gave the company an “outperform” rating in a research report on Thursday, May 2nd. Finally, Wells Fargo & Company boosted their target price on Ares Capital from $19.00 to $20.00 and gave the stock an “equal weight” rating in a research report on Monday, January 29th. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $21.43.

Ares Capital Trading Down 0.4 %

Shares of ARCC stock opened at $20.80 on Monday. The stock has a market capitalization of $12.64 billion, a price-to-earnings ratio of 7.12 and a beta of 0.99. Ares Capital has a 1 year low of $18.00 and a 1 year high of $21.04. The company’s fifty day simple moving average is $20.45 and its two-hundred day simple moving average is $20.10. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.63 and a quick ratio of 1.63.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Wednesday, May 1st. The investment management company reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). Ares Capital had a net margin of 62.77% and a return on equity of 12.37%. The business had revenue of $701.00 million for the quarter, compared to the consensus estimate of $703.85 million. During the same period in the previous year, the firm earned $0.56 EPS. The company’s revenue was up 13.4% compared to the same quarter last year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Friday, June 14th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Thursday, June 13th. This represents a $1.92 annualized dividend and a dividend yield of 9.23%. Ares Capital’s payout ratio is 65.75%.

Hedge Funds Weigh In On Ares Capital

A number of institutional investors and hedge funds have recently modified their holdings of the company. Confluence Investment Management LLC purchased a new position in shares of Ares Capital in the first quarter worth approximately $86,227,000. International Assets Investment Management LLC grew its position in shares of Ares Capital by 1,865.8% during the 4th quarter. International Assets Investment Management LLC now owns 4,214,991 shares of the investment management company’s stock valued at $844,260,000 after acquiring an additional 4,000,570 shares during the period. Van ECK Associates Corp raised its holdings in Ares Capital by 17.4% in the 1st quarter. Van ECK Associates Corp now owns 9,719,943 shares of the investment management company’s stock worth $202,369,000 after purchasing an additional 1,437,864 shares during the period. Melia Wealth LLC purchased a new position in Ares Capital during the fourth quarter valued at $13,992,000. Finally, Tudor Investment Corp Et Al bought a new stake in Ares Capital during the third quarter valued at about $11,952,000. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

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.