Equities research analysts expect that Ares Capital Co. (NASDAQ:ARCC) will announce $0.44 earnings per share for the current quarter, Zacks Investment Research reports. Seven analysts have made estimates for Ares Capital’s earnings. The highest EPS estimate is $0.45 and the lowest is $0.41. Ares Capital posted earnings of $0.39 per share during the same quarter last year, which indicates a positive year over year growth rate of 12.8%. The business is expected to report its next quarterly earnings results on Wednesday, August 7th.
According to Zacks, analysts expect that Ares Capital will report full year earnings of $1.79 per share for the current financial year, with EPS estimates ranging from $1.71 to $1.83. For the next year, analysts anticipate that the firm will post earnings of $1.79 per share, with EPS estimates ranging from $1.72 to $1.88. Zacks’ earnings per share averages are a mean average based on a survey of analysts that follow Ares Capital.
Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Tuesday, April 30th. The investment management company reported $0.48 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.42 by $0.06. Ares Capital had a net margin of 59.58% and a return on equity of 10.12%. The business had revenue of $373.00 million during the quarter, compared to analyst estimates of $337.96 million. During the same period last year, the business posted $0.57 earnings per share.
Several brokerages have commented on ARCC. Wedbush set a $20.00 price objective on shares of Ares Capital and gave the stock a “buy” rating in a report on Tuesday, May 14th. National Securities restated a “buy” rating and issued a $20.00 price objective on shares of Ares Capital in a report on Wednesday, May 1st. BidaskClub upgraded shares of Ares Capital from a “hold” rating to a “buy” rating in a report on Wednesday, May 15th. Zacks Investment Research lowered shares of Ares Capital from a “buy” rating to a “hold” rating in a report on Tuesday, April 16th. Finally, JMP Securities raised their price objective on shares of Ares Capital from $19.00 to $19.50 and gave the stock a “market outperform” rating in a report on Wednesday, February 13th. One research analyst has rated the stock with a hold rating and six have assigned a buy rating to the company. Ares Capital has a consensus rating of “Buy” and an average target price of $19.25.
In other Ares Capital news, Director Bates Ann Torre bought 9,725 shares of the firm’s stock in a transaction on Wednesday, May 15th. The stock was acquired at an average price of $17.61 per share, with a total value of $171,257.25. Following the completion of the purchase, the director now owns 24,000 shares of the company’s stock, valued at $422,640. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Steven B. Mckeever bought 5,640 shares of the firm’s stock in a transaction on Monday, May 13th. The shares were acquired at an average cost of $17.52 per share, with a total value of $98,812.80. The disclosure for this purchase can be found here. Insiders acquired 15,965 shares of company stock valued at $280,478 over the last 90 days. 0.53% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the business. Financial Advantage Inc. increased its stake in shares of Ares Capital by 0.8% during the first quarter. Financial Advantage Inc. now owns 285,221 shares of the investment management company’s stock valued at $4,888,000 after purchasing an additional 2,178 shares in the last quarter. Ipswich Investment Management Co. Inc. increased its stake in shares of Ares Capital by 256.9% during the first quarter. Ipswich Investment Management Co. Inc. now owns 73,199 shares of the investment management company’s stock valued at $1,255,000 after purchasing an additional 52,689 shares in the last quarter. LGT Capital Partners LTD. increased its stake in shares of Ares Capital by 7.0% during the first quarter. LGT Capital Partners LTD. now owns 1,830,000 shares of the investment management company’s stock valued at $31,366,000 after purchasing an additional 120,000 shares in the last quarter. Baltimore Washington Financial Advisors Inc. increased its stake in shares of Ares Capital by 2.2% during the fourth quarter. Baltimore Washington Financial Advisors Inc. now owns 576,381 shares of the investment management company’s stock valued at $8,980,000 after purchasing an additional 12,413 shares in the last quarter. Finally, Global Strategic Management Inc. bought a new position in shares of Ares Capital during the fourth quarter valued at approximately $3,392,000. 37.62% of the stock is owned by institutional investors and hedge funds.
ARCC traded up $0.12 on Monday, hitting $17.68. The company had a trading volume of 1,601,608 shares, compared to its average volume of 1,871,448. The company has a debt-to-equity ratio of 0.84, a current ratio of 2.47 and a quick ratio of 2.47. Ares Capital has a 52-week low of $14.50 and a 52-week high of $18.07. The firm has a market capitalization of $7.47 billion, a PE ratio of 10.52 and a beta of 0.63.
The business also recently disclosed a special dividend, which will be paid on Monday, September 30th. Shareholders of record on Monday, September 16th will be issued a $0.02 dividend. The ex-dividend date of this dividend is Friday, September 13th. This represents a yield of 9.04%. Ares Capital’s dividend payout ratio (DPR) is presently 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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