Ares Capital (NASDAQ:ARCC) Announces Earnings Results

Ares Capital (NASDAQ:ARCC) announced its quarterly earnings results on Wednesday. The investment management company reported $0.59 earnings per share for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01), Briefing.com reports. The business had revenue of $701.00 million for the quarter, compared to analyst estimates of $703.85 million. Ares Capital had a return on equity of 12.50% and a net margin of 58.22%. Ares Capital’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same period last year, the firm earned $0.56 EPS.

Ares Capital Price Performance

NASDAQ ARCC traded down $0.05 on Thursday, hitting $20.80. 810,247 shares of the company’s stock were exchanged, compared to its average volume of 3,497,822. The stock has a 50-day moving average of $20.40 and a 200-day moving average of $20.05. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.06. Ares Capital has a 52 week low of $17.53 and a 52 week high of $21.00. The stock has a market cap of $12.62 billion, a price-to-earnings ratio of 7.80 and a beta of 0.99.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 9.23%. Ares Capital’s payout ratio is presently 71.91%.

Analyst Upgrades and Downgrades

ARCC has been the topic of a number of recent analyst reports. B. Riley downgraded Ares Capital from a “buy” rating to a “neutral” rating and set a $21.00 price target on the stock. in a research report on Monday, January 8th. Truist Financial upped their target price on Ares Capital from $22.00 to $23.00 and gave the company a “buy” rating in a research report on Thursday. JMP Securities reaffirmed a “market outperform” rating and issued a $21.00 target price on shares of Ares Capital in a research report on Tuesday, March 26th. Wells Fargo & Company upped their target price on Ares Capital from $19.00 to $20.00 and gave the company an “equal weight” rating in a research report on Monday, January 29th. Finally, Oppenheimer increased their price target on Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a research report on Thursday. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $21.29.

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.