Shares of Ares Capital Co. (NASDAQ:ARCC) have been assigned a consensus rating of “Buy” from the eight brokerages that are currently covering the company, MarketBeat reports. Two equities research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $18.70.
A number of research analysts recently commented on the company. Zacks Investment Research downgraded Ares Capital from a “buy” rating to a “hold” rating in a research note on Wednesday, January 16th. BidaskClub downgraded Ares Capital from a “buy” rating to a “hold” rating in a research note on Saturday, January 19th. Finally, JMP Securities upped their price objective on Ares Capital from $19.00 to $19.50 and gave the stock a “market outperform” rating in a research note on Wednesday, February 13th.
A number of hedge funds have recently made changes to their positions in ARCC. Capital Financial Planning LLC acquired a new position in Ares Capital during the 4th quarter worth $28,000. Lavaca Capital LLC acquired a new position in Ares Capital during the 4th quarter worth $32,000. Ffcm LLC boosted its position in Ares Capital by 53.4% during the 4th quarter. Ffcm LLC now owns 2,201 shares of the investment management company’s stock worth $34,000 after acquiring an additional 766 shares during the period. Enlightenment Research LLC acquired a new position in Ares Capital during the 4th quarter worth $53,000. Finally, Covington Capital Management acquired a new position in Ares Capital during the 4th quarter worth $76,000. Institutional investors own 39.26% of the company’s stock.
Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Tuesday, February 12th. The investment management company reported $0.45 EPS for the quarter, topping the Zacks’ consensus estimate of $0.41 by $0.04. The firm had revenue of $345.00 million during the quarter, compared to the consensus estimate of $327.24 million. Ares Capital had a return on equity of 9.69% and a net margin of 64.17%. During the same period in the prior year, the business earned $0.38 EPS. As a group, research analysts anticipate that Ares Capital will post 1.71 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Friday, March 29th. Shareholders of record on Friday, March 15th were given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 9.14%. The ex-dividend date of this dividend was Thursday, March 14th. This is a positive change from Ares Capital’s previous quarterly dividend of $0.39. Ares Capital’s payout ratio is 95.24%.
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.
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