Ares Capital (NASDAQ:ARCC) Shares Break Below 50-Day Moving Average – Here’s Why

Ares Capital Corporation (NASDAQ:ARCC) passed below its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $19.16 and traded as low as $19.03. Ares Capital shares last traded at $19.13, with a volume of 4,134,933 shares.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. Keefe, Bruyette & Woods reduced their price target on Ares Capital from $21.00 to $20.00 and set an “outperform” rating for the company in a report on Thursday, July 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Capital in a research note on Friday, September 4th. Citigroup reissued a “market outperform” rating on shares of Ares Capital in a research report on Wednesday, October 28th. UBS Group upgraded shares of Ares Capital from a “neutral” rating to a “buy” rating and set a $21.00 price objective for the company in a research note on Thursday, October 29th. Finally, Truist Financial reduced their price objective on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Nine investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $20.39.

Ares Capital Price Performance

The company has a debt-to-equity ratio of 1.08, a current ratio of 1.00 and a quick ratio of 1.00. The company has a market capitalization of $13.82 billion, a PE ratio of 15.68 and a beta of 0.60. The firm has a 50-day moving average of $19.16 and a 200 day moving average of $19.00.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Tuesday, October 27th. The investment management company reported $0.46 earnings per share for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.02). The business had revenue of $763.00 million during the quarter, compared to analysts’ expectations of $776.34 million. Ares Capital had a return on equity of 9.72% and a net margin of 28.34%. Ares Capital’s quarterly revenue was down 2.4% compared to the same quarter last year. During the same period last year, the firm posted $0.50 EPS. As a group, research analysts anticipate that Ares Capital Corporation will post 1.88 earnings per share for the current fiscal year.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Tuesday, December 15th will be given a dividend of $0.48 per share. The ex-dividend date is Tuesday, December 15th. This represents a $1.92 dividend on an annualized basis and a yield of 10.0%. Ares Capital’s dividend payout ratio is 157.38%.

Institutional Investors Weigh In On Ares Capital

A number of large investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE bought a new stake in shares of Ares Capital during the 2nd quarter valued at $165,569,000. Legal & General Group Plc bought a new position in Ares Capital in the 2nd quarter worth $120,538,000. Advisors Capital Management LLC bought a new position in Ares Capital in the 2nd quarter worth $63,140,000. OMERS ADMINISTRATION Corp purchased a new position in Ares Capital during the second quarter valued at $53,867,000. Finally, BlackRock Inc. purchased a new position in Ares Capital during the second quarter valued at $45,339,000. Institutional investors own 27.38% of the company’s stock.

Ares Capital Company Profile

Ares Capital Corporation is a business development company that provides financing to U.S. middle-market companies, including businesses backed by private equity firms. It is externally managed by Ares Capital Management, an affiliate of Ares Management Corporation.

The company invests primarily in debt, including first-lien and second-lien loans and subordinated debt, and may also make equity investments. Its financing supports a range of business needs, such as acquisitions, growth, and refinancing.

Founded in 2004, Ares Capital focuses mainly on companies in the United States.