Analysts forecast that Ares Capital Co. (NASDAQ:ARCC) will announce sales of $322.73 million for the current fiscal quarter, according to Zacks Investment Research. Seven analysts have issued estimates for Ares Capital’s earnings, with the lowest sales estimate coming in at $315.80 million and the highest estimate coming in at $333.70 million. Ares Capital reported sales of $294.00 million during the same quarter last year, which indicates a positive year-over-year growth rate of 9.8%. The business is expected to announce its next quarterly earnings report before the market opens on Wednesday, October 31st.
According to Zacks, analysts expect that Ares Capital will report full year sales of $1.30 billion for the current fiscal year, with estimates ranging from $1.28 billion to $1.33 billion. For the next year, analysts anticipate that the firm will post sales of $1.37 billion, with estimates ranging from $1.27 billion to $1.44 billion. Zacks’ sales calculations are an average based on a survey of research analysts that follow Ares Capital.
Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, August 1st. The investment management company reported $0.39 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.39. The company had revenue of $333.00 million for the quarter, compared to the consensus estimate of $322.06 million. Ares Capital had a net margin of 69.31% and a return on equity of 8.98%. During the same quarter in the prior year, the firm earned $0.42 earnings per share.
Several equities research analysts have recently weighed in on the stock. BidaskClub downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a research note on Tuesday. Citigroup assumed coverage on shares of Ares Capital in a research note on Thursday, August 23rd. They issued a “buy” rating and a $19.00 target price on the stock. Finally, National Securities reissued a “buy” rating and issued a $19.00 target price on shares of Ares Capital in a research note on Monday, August 6th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and eight have given a buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus target price of $18.28.
Shares of ARCC traded down $0.01 during midday trading on Wednesday, hitting $16.37. The stock had a trading volume of 2,362,262 shares, compared to its average volume of 1,867,131. Ares Capital has a 1 year low of $15.03 and a 1 year high of $17.58. The company has a market cap of $7.33 billion, a P/E ratio of 11.78, a P/E/G ratio of 3.62 and a beta of 0.65. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.62.
The company also recently announced a quarterly dividend, which was paid on Friday, September 28th. Stockholders of record on Friday, September 14th were paid a $0.39 dividend. The ex-dividend date of this dividend was Thursday, September 13th. This represents a $1.56 annualized dividend and a dividend yield of 9.53%. This is an increase from Ares Capital’s previous quarterly dividend of $0.38. Ares Capital’s dividend payout ratio is currently 112.23%.
In other news, Director Eric B. Siegel bought 6,990 shares of Ares Capital stock in a transaction dated Wednesday, September 12th. The shares were acquired at an average price of $17.30 per share, with a total value of $120,927.00. Following the completion of the purchase, the director now owns 36,630 shares in the company, valued at approximately $633,699. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Bates Ann Torre purchased 9,000 shares of the business’s stock in a transaction dated Wednesday, August 29th. The stock was bought at an average price of $17.44 per share, for a total transaction of $156,960.00. Following the completion of the acquisition, the director now owns 20,000 shares of the company’s stock, valued at approximately $348,800. The disclosure for this purchase can be found here. In the last three months, insiders bought 16,390 shares of company stock worth $284,795. Insiders own 0.49% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Millennium Management LLC grew its holdings in shares of Ares Capital by 65.3% in the second quarter. Millennium Management LLC now owns 3,408,182 shares of the investment management company’s stock worth $56,065,000 after purchasing an additional 1,346,837 shares during the last quarter. OMERS ADMINISTRATION Corp grew its holdings in shares of Ares Capital by 2.3% in the second quarter. OMERS ADMINISTRATION Corp now owns 2,744,621 shares of the investment management company’s stock worth $45,149,000 after purchasing an additional 61,162 shares during the last quarter. Brown Advisory Inc. grew its holdings in shares of Ares Capital by 1.8% in the second quarter. Brown Advisory Inc. now owns 2,352,165 shares of the investment management company’s stock worth $38,693,000 after purchasing an additional 41,468 shares during the last quarter. Van ECK Associates Corp grew its holdings in shares of Ares Capital by 2.9% in the second quarter. Van ECK Associates Corp now owns 2,290,979 shares of the investment management company’s stock worth $37,687,000 after purchasing an additional 65,013 shares during the last quarter. Finally, Schroder Investment Management Group grew its holdings in shares of Ares Capital by 0.8% in the second quarter. Schroder Investment Management Group now owns 1,653,856 shares of the investment management company’s stock worth $27,206,000 after purchasing an additional 12,874 shares during the last quarter. Hedge funds and other institutional investors own 40.34% of the company’s stock.
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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