Brokerages expect that Ares Capital Co. (NASDAQ:ARCC) will report sales of $306.22 million for the current fiscal quarter, Zacks reports. Seven analysts have issued estimates for Ares Capital’s earnings, with the lowest sales estimate coming in at $291.00 million and the highest estimate coming in at $315.85 million. Ares Capital reported sales of $275.00 million during the same quarter last year, which indicates a positive year-over-year growth rate of 11.4%. The company is expected to report its next quarterly earnings results on Wednesday, May 2nd.
On average, analysts expect that Ares Capital will report full-year sales of $306.22 million for the current fiscal year, with estimates ranging from $1.08 billion to $1.32 billion. For the next year, analysts anticipate that the company will post sales of $1.32 billion per share, with estimates ranging from $1.12 billion to $1.42 billion. Zacks Investment Research’s sales averages are a mean average based on a survey of sell-side research firms that cover Ares Capital.
Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Tuesday, February 13th. The investment management company reported $0.38 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.37 by $0.01. The firm had revenue of $307.00 million for the quarter, compared to analyst estimates of $301.38 million. Ares Capital had a net margin of 57.50% and a return on equity of 8.43%. The business’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.42 EPS.
Several equities research analysts have issued reports on the stock. Zacks Investment Research lowered shares of Ares Capital from a “hold” rating to a “sell” rating in a report on Tuesday, January 2nd. BidaskClub lowered shares of Ares Capital from a “sell” rating to a “strong sell” rating in a report on Tuesday, December 5th. Compass Point began coverage on shares of Ares Capital in a report on Wednesday, December 6th. They issued a “buy” rating and a $17.50 target price on the stock. Wedbush began coverage on shares of Ares Capital in a report on Monday, November 27th. They issued an “outperform” rating and a $18.00 target price on the stock. Finally, TheStreet raised shares of Ares Capital from a “c+” rating to a “b-” rating in a report on Tuesday, December 12th. One analyst has rated the stock with a sell rating, three have issued a hold rating and eight have assigned a buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $18.00.
In related news, CFO Penelope F. Roll purchased 3,000 shares of Ares Capital stock in a transaction that occurred on Thursday, February 15th. The shares were acquired at an average price of $15.81 per share, for a total transaction of $47,430.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Michael J. Arougheti purchased 25,000 shares of Ares Capital stock in a transaction that occurred on Thursday, March 15th. The shares were bought at an average price of $15.60 per share, for a total transaction of $390,000.00. Following the transaction, the insider now owns 984,535 shares in the company, valued at $15,358,746. The disclosure for this purchase can be found here. In the last quarter, insiders have purchased 28,600 shares of company stock worth $446,996. 0.45% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Raymond James Financial Services Advisors Inc. lifted its position in Ares Capital by 8.2% during the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 165,239 shares of the investment management company’s stock valued at $2,708,000 after purchasing an additional 12,574 shares during the period. Boston Partners lifted its position in Ares Capital by 29.5% during the 3rd quarter. Boston Partners now owns 468,278 shares of the investment management company’s stock valued at $7,675,000 after purchasing an additional 106,713 shares during the period. Global X MANAGEMENT CO LLC lifted its position in Ares Capital by 46.6% during the 3rd quarter. Global X MANAGEMENT CO LLC now owns 11,811 shares of the investment management company’s stock valued at $194,000 after purchasing an additional 3,756 shares during the period. Sumitomo Mitsui Trust Holdings Inc. acquired a new position in Ares Capital during the 3rd quarter valued at about $167,000. Finally, Putnam FL Investment Management Co. acquired a new position in Ares Capital during the 3rd quarter valued at about $181,000. Institutional investors and hedge funds own 42.78% of the company’s stock.
Shares of Ares Capital (ARCC) opened at $15.34 on Friday. The stock has a market cap of $6,641.74, a price-to-earnings ratio of 9.77, a price-to-earnings-growth ratio of 3.32 and a beta of 0.60. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.68. Ares Capital has a fifty-two week low of $15.03 and a fifty-two week high of $17.70.
The company also recently announced a quarterly dividend, which will be paid on Friday, March 30th. Stockholders of record on Thursday, March 15th will be issued a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 9.91%. The ex-dividend date of this dividend is Wednesday, March 14th. Ares Capital’s payout ratio is 96.82%.
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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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