Ares Capital Co. (NASDAQ:ARCC) – Research analysts at Wedbush cut their Q2 2019 EPS estimates for Ares Capital in a note issued to investors on Monday, May 13th. Wedbush analyst H. Coffey now forecasts that the investment management company will post earnings per share of $0.41 for the quarter, down from their previous forecast of $0.42. Wedbush currently has a “Buy” rating and a $20.00 price target on the stock. Wedbush also issued estimates for Ares Capital’s Q3 2019 earnings at $0.41 EPS and FY2019 earnings at $1.75 EPS.
Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Tuesday, April 30th. The investment management company reported $0.48 earnings per share for the quarter, topping analysts’ consensus estimates of $0.42 by $0.06. The firm had revenue of $373.00 million for the quarter, compared to analyst estimates of $337.96 million. Ares Capital had a net margin of 59.58% and a return on equity of 10.12%. During the same period in the previous year, the business posted $0.57 earnings per share.
A number of other equities analysts have also weighed in on the stock. National Securities boosted their price target on shares of Ares Capital from $19.00 to $20.00 and gave the stock a “buy” rating in a research report on Wednesday, February 13th. JMP Securities boosted their price target on shares of Ares Capital from $19.00 to $19.50 and gave the stock a “market outperform” rating in a research report on Wednesday, February 13th. BidaskClub upgraded shares of Ares Capital from a “hold” rating to a “buy” rating in a research report on Saturday, February 9th. Finally, Zacks Investment Research lowered shares of Ares Capital from a “buy” rating to a “hold” rating in a research report on Tuesday, April 16th. One investment analyst has rated the stock with a hold rating and six have given a buy rating to the company. The company has an average rating of “Buy” and an average target price of $19.25.
ARCC opened at $17.78 on Thursday. The stock has a market cap of $7.52 billion, a P/E ratio of 10.58 and a beta of 0.65. Ares Capital has a twelve month low of $14.50 and a twelve month high of $18.07. The company has a current ratio of 2.47, a quick ratio of 2.47 and a debt-to-equity ratio of 0.84.
The firm also recently declared a special dividend, which will be paid on Monday, September 30th. Investors of record on Monday, September 16th will be given a dividend of $0.02 per share. The ex-dividend date is Friday, September 13th. This represents a yield of 9.04%. Ares Capital’s payout ratio is presently 95.24%.
In other news, Director Bates Ann Torre bought 9,725 shares of Ares Capital stock in a transaction on Wednesday, May 15th. The shares were bought at an average cost of $17.61 per share, with a total value of $171,257.25. Following the completion of the purchase, the director now directly owns 24,000 shares of the company’s stock, valued at $422,640. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Steven B. Mckeever bought 5,640 shares of Ares Capital stock in a transaction on Monday, May 13th. The shares were purchased at an average cost of $17.52 per share, for a total transaction of $98,812.80. The disclosure for this purchase can be found here. Insiders have purchased 15,965 shares of company stock worth $280,348 over the last 90 days. 0.53% of the stock is currently owned by company insiders.
Hedge funds have recently modified their holdings of the business. Ipswich Investment Management Co. Inc. bought a new stake in shares of Ares Capital during the 4th quarter valued at about $320,000. Douglass Winthrop Advisors LLC acquired a new position in Ares Capital during the 4th quarter worth approximately $280,000. Baugh & Associates LLC raised its stake in Ares Capital by 0.9% during the 4th quarter. Baugh & Associates LLC now owns 195,389 shares of the investment management company’s stock worth $3,044,000 after buying an additional 1,771 shares during the period. Capital Investment Advisors LLC raised its stake in Ares Capital by 29.6% during the 4th quarter. Capital Investment Advisors LLC now owns 48,995 shares of the investment management company’s stock worth $763,000 after buying an additional 11,200 shares during the period. Finally, Joel Isaacson & Co. LLC raised its stake in Ares Capital by 159.7% during the 4th quarter. Joel Isaacson & Co. LLC now owns 28,503 shares of the investment management company’s stock worth $464,000 after buying an additional 17,528 shares during the period. 39.15% of the stock is currently owned by institutional investors.
About Ares Capital
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.
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