Ares Capital (NASDAQ:ARCC) Given New $23.00 Price Target at Royal Bank Of Canada

Ares Capital (NASDAQ:ARCC) had its price objective decreased by Royal Bank Of Canada from $24.00 to $23.00 in a report published on Wednesday, Marketbeat Ratings reports. Royal Bank Of Canada currently has an outperform rating on the investment management company’s stock.

Several other equities research analysts have also commented on the stock. JPMorgan Chase & Co. decreased their price objective on shares of Ares Capital from $23.00 to $22.00 and set an “overweight” rating for the company in a research note on Wednesday, October 1st. JMP Securities set a $23.00 price objective on shares of Ares Capital and gave the company a “market outperform” rating in a research note on Thursday, July 31st. Citigroup reiterated an “outperform” rating on shares of Ares Capital in a research note on Thursday, July 31st. Wells Fargo & Company increased their price objective on shares of Ares Capital from $22.00 to $23.00 and gave the company an “overweight” rating in a research note on Wednesday, July 30th. Finally, UBS Group decreased their price objective on shares of Ares Capital from $22.50 to $21.00 and set a “neutral” rating for the company in a research note on Tuesday, October 14th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $22.25.

Ares Capital Price Performance

Shares of NASDAQ ARCC opened at $20.61 on Wednesday. Ares Capital has a fifty-two week low of $18.26 and a fifty-two week high of $23.84. The stock has a market cap of $14.54 billion, a price-to-earnings ratio of 10.31 and a beta of 0.68. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.14 and a current ratio of 1.14. The firm’s 50-day simple moving average is $20.96 and its 200 day simple moving average is $21.55.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, October 28th. The investment management company reported $0.50 earnings per share for the quarter, meeting the consensus estimate of $0.50. Ares Capital had a net margin of 45.16% and a return on equity of 10.20%. The business had revenue of $658.00 million for the quarter, compared to analysts’ expectations of $766.48 million. During the same quarter last year, the firm earned $0.58 EPS. The firm’s revenue for the quarter was up .9% compared to the same quarter last year. As a group, research analysts anticipate that Ares Capital will post 2.19 earnings per share for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 30th. Stockholders of record on Monday, December 15th will be paid a dividend of $0.48 per share. The ex-dividend date is Monday, December 15th. This represents a $1.92 annualized dividend and a dividend yield of 9.3%. Ares Capital’s dividend payout ratio (DPR) is presently 93.66%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. City Holding Co. grew its stake in Ares Capital by 444.4% in the 3rd quarter. City Holding Co. now owns 1,225 shares of the investment management company’s stock valued at $25,000 after buying an additional 1,000 shares in the last quarter. Fourth Dimension Wealth LLC purchased a new stake in Ares Capital during the 2nd quarter worth about $29,000. Elequin Capital LP purchased a new stake in Ares Capital during the 1st quarter worth about $30,000. NBT Bank N A NY purchased a new stake in Ares Capital during the 3rd quarter worth about $31,000. Finally, CNB Bank purchased a new stake in Ares Capital during the 2nd quarter worth about $36,000. 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.