Ares Capital (NASDAQ:ARCC) Shares Down 1.8% – Here’s What Happened

Shares of Ares Capital Corporation (NASDAQ:ARCC) fell 1.8% during mid-day trading on Tuesday . The stock traded as low as $17.89 and last traded at $17.96. 7,854,783 shares changed hands during trading, an increase of 4% from the average session volume of 7,531,544 shares. The stock had previously closed at $18.28.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Ares Capital in a report on Monday, December 29th. Royal Bank Of Canada cut their price target on Ares Capital from $23.00 to $22.00 and set an “outperform” rating on the stock in a research report on Monday, February 9th. Wells Fargo & Company reduced their price objective on Ares Capital from $21.00 to $20.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. UBS Group decreased their price objective on Ares Capital from $21.00 to $19.00 and set a “neutral” rating for the company in a report on Friday, March 13th. Finally, B. Riley Financial reaffirmed a “buy” rating on shares of Ares Capital in a report on Monday, February 9th. Seven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $21.38.

Ares Capital Stock Performance

The stock has a fifty day moving average of $19.40 and a 200-day moving average of $20.08. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.12. The stock has a market cap of $12.90 billion, a PE ratio of 9.66 and a beta of 0.59.

Ares Capital (NASDAQ:ARCC) last announced its earnings results on Wednesday, February 4th. The investment management company reported $0.50 earnings per share for the quarter, meeting the consensus estimate of $0.50. The company had revenue of $793.00 million for the quarter, compared to the consensus estimate of $795.20 million. Ares Capital had a return on equity of 9.89% and a net margin of 42.56%.The company’s revenue was up 4.5% on a year-over-year basis. During the same period last year, the business posted $0.55 EPS. On average, equities analysts forecast that Ares Capital Corporation will post 2.19 EPS for the current year.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be issued a $0.48 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.92 annualized dividend and a dividend yield of 10.7%. Ares Capital’s payout ratio is presently 103.23%.

Insider Transactions at Ares Capital

In other Ares Capital news, CFO Scott C. Lem acquired 5,186 shares of the stock in a transaction on Friday, February 6th. The shares were bought at an average price of $19.29 per share, with a total value of $100,037.94. Following 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 acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Michael Kort Schnabel bought 12,500 shares of the company’s stock in a transaction on Thursday, February 5th. The shares were acquired at an average price of $19.13 per share, for a total transaction of $239,125.00. Following the transaction, the chief executive officer directly owned 40,500 shares in the company, valued at $774,765. This trade represents a 44.64% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.49% of the company’s stock.

Institutional Trading of Ares Capital

Several hedge funds have recently modified their holdings of the business. Hsbc Holdings PLC acquired a new position in Ares Capital during the fourth quarter worth $1,305,000. Rockefeller Capital Management L.P. boosted its position in shares of Ares Capital by 3.7% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,251,437 shares of the investment management company’s stock worth $45,547,000 after purchasing an additional 79,488 shares in the last quarter. World Investment Advisors grew its stake in shares of Ares Capital by 65.0% during the 4th quarter. World Investment Advisors now owns 21,920 shares of the investment management company’s stock worth $443,000 after purchasing an additional 8,637 shares during the period. Eos Management L.P. acquired a new position in shares of Ares Capital during the 4th quarter worth $1,416,000. Finally, Corient Private Wealth LLC increased its holdings in shares of Ares Capital by 0.3% in the 4th quarter. Corient Private Wealth LLC now owns 1,193,526 shares of the investment management company’s stock valued at $24,145,000 after purchasing an additional 4,064 shares in the last quarter. 27.38% of the stock is owned by institutional investors and hedge funds.

About Ares Capital

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.