Ares Capital (NASDAQ:ARCC) Shares Up 0.9% – Time to Buy?

Ares Capital Co. (NASDAQ:ARCC)’s share price was up 0.9% on Tuesday . The stock traded as high as $20.28 and last traded at $20.19. Approximately 1,486,728 shares changed hands during trading, a decline of 63% from the average daily volume of 4,007,482 shares. The stock had previously closed at $20.02.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Keefe, Bruyette & Woods decreased their price objective on shares of Ares Capital from $23.00 to $22.00 and set an “outperform” rating for the company in a research note on Tuesday, April 8th. Royal Bank of Canada raised their target price on Ares Capital from $23.00 to $24.00 and gave the company an “outperform” rating in a research report on Friday, February 7th. Wells Fargo & Company decreased their price objective on shares of Ares Capital from $24.00 to $23.00 and set an “overweight” rating for the company in a report on Thursday, February 6th. Raymond James lowered shares of Ares Capital from an “outperform” rating to a “market perform” rating in a research note on Thursday, February 6th. Finally, JPMorgan Chase & Co. upped their price objective on Ares Capital from $23.00 to $24.50 and gave the company an “overweight” rating in a research note on Monday, February 3rd. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Ares Capital presently has a consensus rating of “Moderate Buy” and a consensus target price of $22.81.

Ares Capital Trading Down 0.4 %

The stock has a market cap of $13.75 billion, a P/E ratio of 8.20 and a beta of 0.77. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.21 and a quick ratio of 1.21. The firm’s 50 day moving average price is $21.95 and its 200-day moving average price is $21.95.

Ares Capital (NASDAQ:ARCC) last posted its earnings results on Wednesday, February 5th. The investment management company reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.58 by ($0.03). Ares Capital had a net margin of 50.90% and a return on equity of 11.54%. As a group, equities research analysts forecast that Ares Capital Co. will post 2.19 earnings per share for the current year.

Ares Capital Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Friday, March 14th were given a dividend of $0.48 per share. The ex-dividend date was Friday, March 14th. This represents a $1.92 annualized dividend and a yield of 9.56%. Ares Capital’s dividend payout ratio (DPR) is presently 78.37%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. SG Americas Securities LLC purchased a new stake in Ares Capital in the 4th quarter worth $519,000. Round Rock Advisors LLC bought a new stake in Ares Capital in the 4th quarter worth approximately $1,512,000. Chicago Partners Investment Group LLC boosted its position in shares of Ares Capital by 5.3% during the 4th quarter. Chicago Partners Investment Group LLC now owns 507,374 shares of the investment management company’s stock valued at $11,208,000 after acquiring an additional 25,347 shares during the last quarter. Franklin Resources Inc. increased its position in Ares Capital by 24.3% in the third quarter. Franklin Resources Inc. now owns 650,163 shares of the investment management company’s stock worth $13,900,000 after purchasing an additional 127,219 shares during the last quarter. Finally, US Bancorp DE lifted its position in Ares Capital by 4.7% during the fourth quarter. US Bancorp DE now owns 43,056 shares of the investment management company’s stock valued at $942,000 after purchasing an additional 1,945 shares during the last quarter. Hedge funds and other institutional investors own 27.38% of the company’s stock.

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.