Ares Capital (NASDAQ:ARCC) Posts Quarterly Earnings Results

Ares Capital (NASDAQ:ARCC) posted its quarterly earnings results on Wednesday. The investment management company reported $0.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.01), Briefing.com reports. The business had revenue of $701.00 million for the quarter, compared to analysts’ expectations of $703.85 million. Ares Capital had a net margin of 62.77% and a return on equity of 12.68%. The business’s quarterly revenue was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.56 earnings per share.

Ares Capital Price Performance

NASDAQ ARCC traded up $0.07 during trading hours on Friday, reaching $20.61. The company’s stock had a trading volume of 2,898,814 shares, compared to its average volume of 3,531,473. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.06. The firm’s 50-day moving average price is $20.41 and its 200-day moving average price is $20.06. Ares Capital has a 1 year low of $17.53 and a 1 year high of $21.00. The company has a market capitalization of $12.51 billion, a price-to-earnings ratio of 7.03 and a beta of 0.99.

Ares Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, June 14th will be issued a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 9.32%. The ex-dividend date is Friday, June 14th. Ares Capital’s dividend payout ratio is currently 65.75%.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on ARCC shares. JPMorgan Chase & Co. boosted their price target on Ares Capital from $21.50 to $22.00 and gave the company an “overweight” rating in a report on Thursday. Truist Financial increased their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a research note on Thursday. JMP Securities reaffirmed a “market outperform” rating and set a $21.00 price target on shares of Ares Capital in a report on Tuesday, March 26th. Oppenheimer raised their price target on shares of Ares Capital from $21.00 to $22.00 and gave the company an “outperform” rating in a report on Thursday. Finally, B. Riley cut shares of Ares Capital from a “buy” rating to a “neutral” rating and set a $21.00 price objective for the company. in a report on Monday, January 8th. Three research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, Ares Capital has a consensus rating of “Moderate Buy” and a consensus target price of $21.43.

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.