Ares Capital (NASDAQ:ARCC) Reaches New 52-Week Low – Time to Sell?

Ares Capital Corporation (NASDAQ:ARCC)’s share price reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $18.17 and last traded at $18.58, with a volume of 2885572 shares. The stock had previously closed at $18.62.

Wall Street Analysts Forecast Growth

ARCC has been the subject of a number of research analyst reports. B. Riley Financial reaffirmed a “buy” rating on shares of Ares Capital in a research note on Monday, February 9th. Wall Street Zen cut shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Wells Fargo & Company decreased their price objective on Ares Capital from $21.00 to $20.00 and set an “overweight” rating on the stock in a research report on Thursday, February 5th. Weiss Ratings restated a “hold (c+)” rating on shares of Ares Capital in a research report on Monday, December 29th. Finally, Royal Bank Of Canada decreased their price target on Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a report on Monday, February 9th. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $22.00.

Ares Capital Price Performance

The company has a market capitalization of $13.51 billion, a price-to-earnings ratio of 10.10 and a beta of 0.59. The company has a 50-day moving average price of $19.99 and a 200-day moving average price of $20.51. The company has a debt-to-equity ratio of 1.12, a quick ratio of 1.70 and a current ratio of 1.70.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings data on Wednesday, February 4th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.50. Ares Capital had a net margin of 42.56% and a return on equity of 9.89%. The firm had revenue of $793.00 million during the quarter, compared to analysts’ expectations of $795.20 million. During the same quarter in the previous year, the company earned $0.55 earnings per share. The business’s revenue for the quarter was up 4.5% on a year-over-year basis. On average, equities research analysts expect that Ares Capital Corporation will post 2.19 EPS for the current fiscal year.

Ares Capital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be issued a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a dividend yield of 10.2%. The ex-dividend date is Friday, March 13th. Ares Capital’s payout ratio is 103.23%.

Insider Activity at Ares Capital

In related news, CEO Michael Kort Schnabel purchased 12,500 shares of the business’s stock in a transaction on Thursday, February 5th. The shares were purchased at an average price of $19.13 per share, with a total value of $239,125.00. Following the completion of the purchase, the chief executive officer owned 40,500 shares in the company, valued at $774,765. This represents a 44.64% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Scott C. Lem acquired 5,186 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were bought at an average price of $19.29 per share, for a total transaction of $100,037.94. Following the completion of the acquisition, the chief financial officer owned 39,463 shares of the company’s stock, valued at $761,241.27. This trade represents a 15.13% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.48% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Clearwave Capital LLC bought a new stake in Ares Capital in the 4th quarter valued at approximately $306,000. Astoria Portfolio Advisors LLC. raised its holdings in shares of Ares Capital by 5.9% in the fourth quarter. Astoria Portfolio Advisors LLC. now owns 10,616 shares of the investment management company’s stock valued at $202,000 after purchasing an additional 592 shares during the last quarter. Virtu Financial LLC bought a new stake in shares of Ares Capital in the fourth quarter worth $1,671,000. Sunbelt Securities Inc. grew its position in Ares Capital by 33.9% in the fourth quarter. Sunbelt Securities Inc. now owns 166,630 shares of the investment management company’s stock valued at $3,371,000 after purchasing an additional 42,157 shares in the last quarter. Finally, Smith Asset Management Co. LLC increased its stake in Ares Capital by 6.3% in the 4th quarter. Smith Asset Management Co. LLC now owns 315,198 shares of the investment management company’s stock valued at $6,376,000 after buying an additional 18,675 shares during the last quarter. 27.38% of the stock is owned by institutional investors and hedge funds.

Ares Capital Company Profile

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.