Ares Capital Co. (NASDAQ:ARCC) declared a quarterly dividend on Wednesday, October 31st, RTT News reports. Stockholders of record on Friday, December 14th will be given a dividend of 0.39 per share by the investment management company on Friday, December 28th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 9.41%. The ex-dividend date of this dividend is Thursday, December 13th.
Ares Capital has a payout ratio of 98.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Analysts expect Ares Capital to earn $1.69 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 92.3%.
ARCC stock opened at $16.58 on Friday. The company has a debt-to-equity ratio of 0.62, a current ratio of 2.41 and a quick ratio of 2.41. Ares Capital has a 12 month low of $15.03 and a 12 month high of $17.63. The company has a market capitalization of $7.12 billion, a PE ratio of 11.93, a PEG ratio of 3.42 and a beta of 0.58.
Ares Capital (NASDAQ:ARCC) last released its quarterly earnings data on Wednesday, October 31st. The investment management company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. Ares Capital had a net margin of 72.13% and a return on equity of 9.34%. The company had revenue of $342.00 million during the quarter, compared to analyst estimates of $320.15 million. During the same period last year, the business earned $0.36 earnings per share. Ares Capital’s revenue was up 16.3% compared to the same quarter last year. Equities research analysts predict that Ares Capital will post 1.63 EPS for the current year.
A number of research firms have recently commented on ARCC. BidaskClub lowered shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Wednesday, August 29th. Citigroup began coverage on shares of Ares Capital in a research report on Thursday, August 23rd. They issued a “buy” rating and a $19.00 price objective for the company. Zacks Investment Research upgraded shares of Ares Capital from a “hold” rating to a “buy” rating and set a $19.00 price objective for the company in a research report on Thursday, November 15th. National Securities restated a “buy” rating and issued a $19.00 price objective on shares of Ares Capital in a research report on Thursday, November 1st. Finally, Oppenheimer set a $18.00 target price on shares of Ares Capital and gave the company a “buy” rating in a research report on Thursday, November 1st. Two research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $18.42.
In related news, Director Eric B. Siegel bought 6,990 shares of the company’s stock in a transaction on Wednesday, September 12th. The stock was acquired at an average cost of $17.30 per share, for a total transaction of $120,927.00. Following the completion of the transaction, the director now directly owns 36,630 shares in the company, valued at approximately $633,699. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Penelope F. Roll sold 6,000 shares of Ares Capital stock in a transaction that occurred on Tuesday, November 20th. The shares were sold at an average price of $16.76, for a total transaction of $100,560.00. Following the sale, the chief financial officer now owns 11,147 shares of the company’s stock, valued at $186,823.72. The disclosure for this sale can be found here. Over the last quarter, insiders have acquired 7,590 shares of company stock valued at $131,039. 0.49% of the stock is currently owned by company insiders.
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About Ares Capital
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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