Ares Capital (NASDAQ:ARCC) Shares Down 1.7%

Ares Capital Co. (NASDAQ:ARCC)’s stock price fell 1.7% during mid-day trading on Friday . The company traded as low as $20.29 and last traded at $20.33. 520,930 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 3,416,701 shares. The stock had previously closed at $20.68.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on ARCC. Royal Bank of Canada reissued an “outperform” rating and issued a $22.00 target price on shares of Ares Capital in a research note on Monday, August 5th. UBS Group raised Ares Capital to a “hold” rating in a research note on Friday, August 23rd. JMP Securities boosted their target price on Ares Capital from $21.00 to $22.00 and gave the company a “market outperform” rating in a research note on Tuesday, July 30th. Finally, Compass Point raised Ares Capital to a “strong-buy” rating in a research note on Tuesday, July 30th. Four analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong 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 target price of $21.71.

Ares Capital Trading Down 1.7 %

The company has a market capitalization of $12.49 billion, a P/E ratio of 6.96 and a beta of 1.01. The business has a fifty day moving average price of $20.82 and a 200 day moving average price of $20.76. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.05.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Tuesday, July 30th. The investment management company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.03. Ares Capital had a return on equity of 12.24% and a net margin of 59.76%. The business had revenue of $755.00 million for the quarter, compared to analyst estimates of $714.27 million. During the same quarter in the prior year, the company posted $0.58 earnings per share. On average, analysts expect that Ares Capital Co. will post 2.38 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 30th. Investors of record on Friday, September 13th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, September 13th. This represents a $1.92 annualized dividend and a yield of 9.44%. Ares Capital’s payout ratio is presently 65.75%.

Institutional Trading of Ares Capital

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Sanctuary Advisors LLC bought a new stake in Ares Capital during the second quarter worth about $3,377,000. Cetera Investment Advisers increased its position in Ares Capital by 5.4% during the second quarter. Cetera Investment Advisers now owns 864,353 shares of the investment management company’s stock worth $18,013,000 after buying an additional 43,963 shares during the last quarter. Truist Financial Corp increased its position in Ares Capital by 2.1% during the second quarter. Truist Financial Corp now owns 137,274 shares of the investment management company’s stock worth $2,861,000 after buying an additional 2,888 shares during the last quarter. Granite FO LLC acquired a new position in Ares Capital during the second quarter worth approximately $4,959,000. Finally, NewEdge Advisors LLC increased its position in Ares Capital by 25.4% during the second quarter. NewEdge Advisors LLC now owns 79,918 shares of the investment management company’s stock worth $1,665,000 after buying an additional 16,184 shares during the last quarter. Institutional investors 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.