Ares Capital (NASDAQ:ARCC) Stock Price Up 0.2%

Ares Capital Co. (NASDAQ:ARCC)’s share price rose 0.2% during trading on Monday . The stock traded as high as $20.67 and last traded at $20.66. Approximately 633,065 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 3,450,775 shares. The stock had previously closed at $20.61.

Analyst Upgrades and Downgrades

ARCC has been the topic of several research reports. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $22.00 target price on shares of Ares Capital in a research report on Monday, August 5th. UBS Group raised Ares Capital to a “hold” rating in a research report on Friday, August 23rd. Compass Point raised Ares Capital to a “strong-buy” rating in a research report on Tuesday, July 30th. Finally, JMP Securities increased their price target on Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a research report on Tuesday, July 30th. Four analysts have rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $21.71.

Ares Capital Stock Up 0.1 %

The firm has a 50 day simple moving average of $20.72 and a two-hundred day simple moving average of $20.78. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.05. The stock has a market capitalization of $13.06 billion, a P/E ratio of 7.09 and a beta of 1.01.

Ares Capital (NASDAQ:ARCC) last released its earnings results on Tuesday, July 30th. The investment management company reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.03. Ares Capital had a return on equity of 12.24% and a net margin of 59.76%. The firm had revenue of $755.00 million during the quarter, compared to analysts’ expectations of $714.27 million. During the same period in the prior year, the company earned $0.58 earnings per share. On average, equities research analysts expect that Ares Capital Co. will post 2.39 earnings per share for the current year.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 30th. Shareholders of record on Friday, September 13th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 9.27%. The ex-dividend date of this dividend is Friday, September 13th. Ares Capital’s payout ratio is presently 65.75%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Centaurus Financial Inc. lifted its stake in shares of Ares Capital by 3.9% in the 2nd quarter. Centaurus Financial Inc. now owns 14,428 shares of the investment management company’s stock valued at $301,000 after acquiring an additional 542 shares during the last quarter. Sanctuary Advisors LLC bought a new position in shares of Ares Capital in the 2nd quarter valued at $3,377,000. Cetera Investment Advisers lifted its stake in shares of Ares Capital by 5.4% in the 2nd quarter. Cetera Investment Advisers now owns 864,353 shares of the investment management company’s stock valued at $18,013,000 after acquiring an additional 43,963 shares during the last quarter. Truist Financial Corp lifted its stake in shares of Ares Capital by 2.1% in the 2nd quarter. Truist Financial Corp now owns 137,274 shares of the investment management company’s stock valued at $2,861,000 after acquiring an additional 2,888 shares during the last quarter. Finally, Granite FO LLC bought a new position in shares of Ares Capital in the 2nd quarter valued at $4,959,000. 27.38% of the stock is currently owned by institutional investors.

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.