Equities analysts predict that Ares Capital Co. (NASDAQ:ARCC) will announce earnings per share (EPS) of $0.36 for the current fiscal quarter, Zacks reports. Six analysts have issued estimates for Ares Capital’s earnings, with the highest EPS estimate coming in at $0.39 and the lowest estimate coming in at $0.33. Ares Capital posted earnings of $0.37 per share in the same quarter last year, which suggests a negative year-over-year growth rate of 2.7%. The company is expected to report its next earnings report before the market opens on Wednesday, May 3rd.
According to Zacks, analysts expect that Ares Capital will report full-year earnings of $1.58 per share for the current financial year, with EPS estimates ranging from $1.51 to $1.64. For the next fiscal year, analysts forecast that the firm will report earnings of $1.71 per share, with EPS estimates ranging from $1.64 to $1.81. Zacks’ earnings per share averages are a mean average based on a survey of research analysts that cover Ares Capital.
Ares Capital (NASDAQ:ARCC) last released its earnings results on Wednesday, February 22nd. The investment management company reported $0.42 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.03. The business earned $261 million during the quarter, compared to the consensus estimate of $247.12 million. Ares Capital had a net margin of 40.83% and a return on equity of 9.57%. During the same quarter in the prior year, the firm posted $0.40 EPS.
Several equities research analysts recently weighed in on the company. Barclays PLC set a $18.00 price target on Ares Capital and gave the company a “buy” rating in a research report on Sunday, January 8th. Jefferies Group LLC reissued a “buy” rating and issued a $19.50 target price on shares of Ares Capital in a report on Friday, April 7th. Wells Fargo & Co reissued a “buy” rating on shares of Ares Capital in a report on Wednesday, January 4th. Citigroup Inc boosted their target price on Ares Capital from $16.00 to $19.00 and gave the stock a “buy” rating in a report on Monday, March 6th. Finally, National Securities boosted their target price on Ares Capital from $16.00 to $18.00 and gave the stock a “neutral” rating in a report on Friday, February 24th. Five research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The stock currently has a consensus rating of “Buy” and an average price target of $17.72.
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Hedge funds and other institutional investors have recently made changes to their positions in the stock. Confluence Investment Management LLC increased its position in shares of Ares Capital by 4.2% in the first quarter. Confluence Investment Management LLC now owns 4,665,359 shares of the investment management company’s stock worth $81,084,000 after buying an additional 190,032 shares during the last quarter. Muzinich & Co. Inc. increased its position in shares of Ares Capital by 158.2% in the third quarter. Muzinich & Co. Inc. now owns 3,606,602 shares of the investment management company’s stock worth $55,902,000 after buying an additional 2,209,623 shares during the last quarter. Bank of Montreal Can increased its position in shares of Ares Capital by 46.5% in the first quarter. Bank of Montreal Can now owns 3,431,407 shares of the investment management company’s stock worth $59,637,000 after buying an additional 1,089,635 shares during the last quarter. Edge Asset Management Inc. increased its position in shares of Ares Capital by 3.0% in the fourth quarter. Edge Asset Management Inc. now owns 3,421,429 shares of the investment management company’s stock worth $56,419,000 after buying an additional 99,516 shares during the last quarter. Finally, Two Sigma Investments LP increased its position in shares of Ares Capital by 18.7% in the fourth quarter. Two Sigma Investments LP now owns 2,538,447 shares of the investment management company’s stock worth $41,859,000 after buying an additional 400,323 shares during the last quarter. 39.07% of the stock is currently owned by hedge funds and other institutional investors.
Ares Capital (NASDAQ:ARCC) traded down 0.17% during mid-day trading on Tuesday, reaching $17.40. 1,480,962 shares of the company’s stock were exchanged. The stock has a market cap of $7.41 billion, a price-to-earnings ratio of 11.52 and a beta of 0.69. The stock has a 50-day moving average of $17.46 and a 200-day moving average of $16.60. Ares Capital has a one year low of $13.85 and a one year high of $17.87.
The firm also recently declared a quarterly dividend, which was paid on Friday, March 31st. Stockholders of record on Wednesday, March 15th were issued a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 8.74%. The ex-dividend date was Monday, March 13th. Ares Capital’s payout ratio is currently 115.15%.
About Ares Capital
Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.
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