Brokerages predict that Ares Capital Co. (NASDAQ:ARCC) will post $322.73 million in sales for the current quarter, according to Zacks. Seven analysts have made estimates for Ares Capital’s earnings, with the highest sales estimate coming in at $333.70 million and the lowest estimate coming in at $315.80 million. Ares Capital reported sales of $294.00 million in the same quarter last year, which would suggest a positive year-over-year growth rate of 9.8%. The business is expected to announce its next quarterly earnings results on Thursday, November 1st.
According to Zacks, analysts expect that Ares Capital will report full-year sales of $1.30 billion for the current year, with estimates ranging from $1.28 billion to $1.33 billion. For the next fiscal year, analysts expect that the business will post sales of $1.37 billion per share, with estimates ranging from $1.27 billion to $1.44 billion. Zacks’ sales averages are a mean average based on a survey of sell-side analysts that follow Ares Capital.
Ares Capital (NASDAQ:ARCC) last announced its earnings results on Wednesday, August 1st. The investment management company reported $0.39 EPS for the quarter, meeting analysts’ consensus estimates of $0.39. The firm had revenue of $333.00 million for the quarter, compared to analysts’ expectations of $322.06 million. Ares Capital had a return on equity of 8.98% and a net margin of 69.31%. During the same quarter in the prior year, the firm earned $0.42 EPS.
ARCC has been the topic of a number of analyst reports. JMP Securities increased their target price on Ares Capital from $18.00 to $18.50 and gave the company a “market outperform” rating in a report on Monday, June 4th. BidaskClub cut Ares Capital from a “hold” rating to a “sell” rating in a report on Wednesday, June 13th. National Securities reiterated a “buy” rating and set a $19.00 target price on shares of Ares Capital in a report on Monday, August 6th. Finally, Citigroup initiated coverage on Ares Capital in a report on Thursday, August 23rd. They set a “buy” rating and a $19.00 target price on the stock. Three investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and an average price target of $18.32.
NASDAQ:ARCC traded down $0.20 during trading hours on Thursday, reaching $17.18. 2,220,100 shares of the company traded hands, compared to its average volume of 1,862,490. The stock has a market cap of $7.42 billion, a PE ratio of 12.36, a price-to-earnings-growth ratio of 3.66 and a beta of 0.64. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.35 and a current ratio of 1.35. Ares Capital has a 1-year low of $15.03 and a 1-year high of $17.58.
The firm also recently declared a quarterly dividend, which will be paid on Friday, September 28th. Shareholders of record on Friday, September 14th will be paid a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 9.08%. The ex-dividend date is Thursday, September 13th. This is a positive change from Ares Capital’s previous quarterly dividend of $0.38. Ares Capital’s dividend payout ratio is currently 109.35%.
In other Ares Capital news, Director Bates Ann Torre purchased 9,000 shares of Ares Capital stock in a transaction on Wednesday, August 29th. The shares were bought at an average price of $17.44 per share, with a total value of $156,960.00. Following the purchase, the director now directly owns 20,000 shares in the company, valued at approximately $348,800. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Eric B. Siegel purchased 6,990 shares of Ares Capital stock in a transaction on Wednesday, September 12th. The shares were acquired at an average cost of $17.30 per share, for a total transaction of $120,927.00. Following the purchase, the director now owns 36,630 shares in the company, valued at $633,699. The disclosure for this purchase can be found here. In the last three months, insiders have acquired 16,190 shares of company stock worth $281,359. Corporate insiders own 0.49% of the company’s stock.
Several institutional investors have recently modified their holdings of ARCC. Millennium Management LLC lifted its stake in shares of Ares Capital by 979.8% during the 1st quarter. Millennium Management LLC now owns 2,061,345 shares of the investment management company’s stock worth $32,714,000 after purchasing an additional 1,870,436 shares during the period. Standard Life Aberdeen plc purchased a new position in shares of Ares Capital during the 2nd quarter worth $17,133,000. OMERS ADMINISTRATION Corp lifted its stake in shares of Ares Capital by 35.1% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 2,683,459 shares of the investment management company’s stock worth $42,586,000 after purchasing an additional 697,640 shares during the period. Caisse DE Depot ET Placement DU Quebec purchased a new position in shares of Ares Capital during the 2nd quarter worth $5,807,000. Finally, PVG Asset Management Corp purchased a new position in shares of Ares Capital during the 2nd quarter worth $5,419,000. 40.41% of the stock is currently owned by institutional investors.
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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