Brokerages Set Ares Capital Corporation (NASDAQ:ARCC) PT at $20.40

Ares Capital Corporation (NASDAQ:ARCC) has received an average recommendation of “Moderate Buy” from the eleven analysts that are presently covering the company, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $20.40.

ARCC has been the topic of several analyst reports. Keefe, Bruyette & Woods dropped their target price on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. Oppenheimer dropped their target price on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 29th. Wells Fargo & Company restated an “equal weight” rating and set a $19.00 price target (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. B. Riley Financial reduced their price target on Ares Capital from $22.00 to $20.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. Finally, Wall Street Zen downgraded Ares Capital from a “hold” rating to a “sell” rating in a research note on Sunday, August 2nd.

Hedge Funds Weigh In On Ares Capital

A number of institutional investors have recently modified their holdings of the company. Orion Capital Management LLC bought a new stake in shares of Ares Capital during the 2nd quarter worth $25,000. Palladiem LLC bought a new position in Ares Capital in the 4th quarter worth $26,000. SWAN Capital LLC bought a new position in Ares Capital in the 3rd quarter worth $27,000. Sankala Group LLC acquired a new position in Ares Capital during the 4th quarter worth $28,000. Finally, Continuum Advisory LLC acquired a new position in Ares Capital during the 2nd quarter worth $30,000. Institutional investors own 27.38% of the company’s stock.

Ares Capital Stock Performance

Shares of ARCC opened at $19.92 on Tuesday. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. The stock has a market capitalization of $14.30 billion, a P/E ratio of 14.76 and a beta of 0.56. Ares Capital has a 12-month low of $17.40 and a 12-month high of $22.53. The firm’s 50 day moving average is $18.93 and its 200-day moving average is $18.82.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Wednesday, July 29th. The investment management company reported $0.47 EPS for the quarter, meeting analysts’ consensus estimates of $0.47. The company had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%.During the same quarter in the prior year, the firm earned $0.50 EPS. Equities research analysts anticipate that Ares Capital will post 1.91 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.92 dividend on an annualized basis and a yield of 9.6%. Ares Capital’s dividend payout ratio is presently 142.22%.

About Ares Capital

Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.

Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.