Ares Capital (NASDAQ:ARCC) Stock Price Up 0.9% – Here’s What Happened

Shares of Ares Capital Co. (NASDAQ:ARCC) traded up 0.9% during trading on Tuesday . The stock traded as high as $20.28 and last traded at $20.19. 1,486,728 shares traded hands during trading, a decline of 63% from the average session volume of 4,007,482 shares. The stock had previously closed at $20.02.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on ARCC shares. Royal Bank of Canada increased their price target on shares of Ares Capital from $23.00 to $24.00 and gave the company an “outperform” rating in a report on Friday, February 7th. Raymond James lowered Ares Capital from an “outperform” rating to a “market perform” rating in a report on Thursday, February 6th. StockNews.com downgraded Ares Capital from a “hold” rating to a “sell” rating in a report on Friday, February 7th. Keefe, Bruyette & Woods decreased their price target on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a research note on Tuesday, April 8th. Finally, Wells Fargo & Company cut their price objective on shares of Ares Capital from $24.00 to $23.00 and set an “overweight” rating for the company in a report on Thursday, February 6th. One research analyst has rated the stock with a sell rating, three have given a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $22.81.

Ares Capital Stock Performance

The stock’s 50-day moving average is $21.95 and its 200-day moving average is $21.95. The firm has a market capitalization of $13.75 billion, a price-to-earnings ratio of 8.20 and a beta of 0.77. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 1.03.

Ares Capital (NASDAQ:ARCC) last issued its earnings results on Wednesday, February 5th. The investment management company reported $0.55 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.03). Ares Capital had a return on equity of 11.54% and a net margin of 50.90%. On average, analysts predict that Ares Capital Co. will post 2.19 EPS for the current fiscal year.

Ares Capital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Friday, March 14th were given a $0.48 dividend. The ex-dividend date was Friday, March 14th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.56%. Ares Capital’s dividend payout ratio (DPR) is presently 78.37%.

Institutional Investors Weigh In On Ares Capital

Several large investors have recently added to or reduced their stakes in ARCC. Sound Income Strategies LLC increased its stake in shares of Ares Capital by 2.8% in the 1st quarter. Sound Income Strategies LLC now owns 2,378,835 shares of the investment management company’s stock valued at $52,715,000 after acquiring an additional 64,566 shares in the last quarter. Vista Finance LLC lifted its stake in shares of Ares Capital by 42.6% in the first quarter. Vista Finance LLC now owns 548,195 shares of the investment management company’s stock valued at $12,148,000 after buying an additional 163,887 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its position in shares of Ares Capital by 28.8% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 393,517 shares of the investment management company’s stock worth $8,720,000 after acquiring an additional 87,934 shares in the last quarter. Griffin Asset Management Inc. lifted its position in Ares Capital by 1.2% in the 1st quarter. Griffin Asset Management Inc. now owns 65,112 shares of the investment management company’s stock valued at $1,443,000 after acquiring an additional 757 shares in the last quarter. Finally, Salem Investment Counselors Inc. boosted its stake in Ares Capital by 2.1% during the 1st quarter. Salem Investment Counselors Inc. now owns 231,915 shares of the investment management company’s stock valued at $5,139,000 after purchasing an additional 4,775 shares during the last quarter. Institutional investors and hedge funds 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.