Analysts expect Ares Capital (NASDAQ:ARCC) to post earnings per share of $0.37 for the current quarter, according to Zacks Investment Research. Seven analysts have issued estimates for Ares Capital’s earnings. The highest EPS estimate is $0.38 and the lowest is $0.36. Ares Capital reported earnings per share of $0.32 during the same quarter last year, which suggests a positive year-over-year growth rate of 15.6%. The company is scheduled to issue its next quarterly earnings report before the market opens on Wednesday, May 2nd.
On average, analysts expect that Ares Capital will report full year earnings of $1.56 per share for the current fiscal year, with EPS estimates ranging from $1.52 to $1.60. For the next financial year, analysts forecast that the company will report earnings of $1.63 per share, with EPS estimates ranging from $1.53 to $1.71. Zacks’ earnings per share averages are an average based on a survey of sell-side research analysts that that provide coverage for Ares Capital.
Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Tuesday, February 13th. The investment management company reported $0.38 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.37 by $0.01. The business had revenue of $307.00 million for the quarter, compared to analysts’ expectations of $301.38 million. Ares Capital had a net margin of 57.50% and a return on equity of 8.43%. The business’s quarterly revenue was up 17.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.42 earnings per share.
Several analysts have recently issued reports on the stock. National Securities reissued a “buy” rating and set a $19.00 price target on shares of Ares Capital in a research report on Thursday, February 15th. BidaskClub cut shares of Ares Capital from a “hold” rating to a “sell” rating in a report on Thursday. JPMorgan Chase raised their target price on shares of Ares Capital from $16.50 to $17.00 and gave the company an “overweight” rating in a report on Wednesday, April 11th. Zacks Investment Research cut shares of Ares Capital from a “hold” rating to a “sell” rating in a report on Tuesday, January 2nd. Finally, Oppenheimer set a $18.00 target price on shares of Ares Capital and gave the company a “buy” rating in a report on Tuesday, February 13th. One analyst has rated the stock with a sell rating, three have issued a hold rating and nine have given a buy rating to the company’s stock. Ares Capital presently has a consensus rating of “Buy” and a consensus target price of $17.90.
In other news, CFO Penelope F. Roll bought 3,000 shares of Ares Capital stock in a transaction that occurred on Thursday, February 15th. The shares were purchased at an average price of $15.81 per share, with a total value of $47,430.00. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michael J. Arougheti acquired 25,000 shares of the business’s stock in a transaction on Thursday, March 15th. The shares were bought at an average cost of $15.60 per share, for a total transaction of $390,000.00. Following the acquisition, the insider now owns 984,535 shares of the company’s stock, valued at approximately $15,358,746. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 28,600 shares of company stock worth $447,042. 0.49% of the stock is owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in the business. Confluence Investment Management LLC raised its holdings in Ares Capital by 2.0% during the fourth quarter. Confluence Investment Management LLC now owns 5,144,529 shares of the investment management company’s stock worth $80,872,000 after purchasing an additional 102,683 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Ares Capital by 118.4% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 4,600,653 shares of the investment management company’s stock worth $72,322,000 after purchasing an additional 2,494,297 shares in the last quarter. Brown Advisory Inc. raised its holdings in Ares Capital by 1.0% during the fourth quarter. Brown Advisory Inc. now owns 2,288,552 shares of the investment management company’s stock worth $35,976,000 after purchasing an additional 21,785 shares in the last quarter. Two Sigma Investments LP raised its holdings in Ares Capital by 1,217.0% during the fourth quarter. Two Sigma Investments LP now owns 1,739,696 shares of the investment management company’s stock worth $27,348,000 after purchasing an additional 1,607,603 shares in the last quarter. Finally, Schroder Investment Management Group raised its holdings in Ares Capital by 19.0% during the fourth quarter. Schroder Investment Management Group now owns 1,629,951 shares of the investment management company’s stock worth $25,623,000 after purchasing an additional 260,007 shares in the last quarter. 42.75% of the stock is currently owned by institutional investors.
Shares of ARCC opened at $15.98 on Wednesday. The stock has a market cap of $6,808.00, a PE ratio of 11.50, a price-to-earnings-growth ratio of 3.41 and a beta of 0.58. Ares Capital has a 1 year low of $15.03 and a 1 year high of $17.68. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.04 and a current ratio of 1.04.
The company also recently announced a quarterly dividend, which was paid on Friday, March 30th. Investors of record on Thursday, March 15th were issued a $0.38 dividend. The ex-dividend date was Wednesday, March 14th. This represents a $1.52 annualized dividend and a yield of 9.51%. Ares Capital’s dividend payout ratio (DPR) is 109.35%.
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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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