Ares Capital (NASDAQ:ARCC) Shares Down 0.7% – Here’s What Happened

Ares Capital Co. (NASDAQ:ARCC)’s share price was down 0.7% during trading on Friday . The company traded as low as $22.19 and last traded at $22.20. Approximately 1,036,063 shares traded hands during trading, a decline of 72% from the average daily volume of 3,696,744 shares. The stock had previously closed at $22.36.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Raymond James downgraded Ares Capital from an “outperform” rating to a “market perform” rating in a research report on Thursday, February 6th. Wells Fargo & Company decreased their target price on Ares Capital from $24.00 to $23.00 and set an “overweight” rating on the stock in a report on Thursday, February 6th. Keefe, Bruyette & Woods raised their price target on Ares Capital from $22.00 to $23.00 and gave the company an “outperform” rating in a report on Friday, February 7th. Royal Bank of Canada upped their price objective on shares of Ares Capital from $23.00 to $24.00 and gave the company an “outperform” rating in a report on Friday, February 7th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Ares Capital from $23.00 to $24.50 and gave the company an “overweight” rating in a research report on Monday, February 3rd. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, seven have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $22.94.

Ares Capital Stock Performance

The company has a market cap of $15.03 billion, a P/E ratio of 9.01 and a beta of 1.00. The stock’s 50-day moving average price is $22.82 and its 200-day moving average price is $21.96. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.21 and a quick ratio of 1.21.

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

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Friday, March 14th will be paid a dividend of $0.48 per share. The ex-dividend date is Friday, March 14th. This represents a $1.92 dividend on an annualized basis and a yield of 8.71%. Ares Capital’s dividend payout ratio (DPR) is presently 78.37%.

Institutional Trading of Ares Capital

A number of institutional investors have recently modified their holdings of the stock. Wealth Enhancement Advisory Services LLC raised its stake in Ares Capital by 14.5% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 305,583 shares of the investment management company’s stock valued at $6,689,000 after purchasing an additional 38,624 shares in the last quarter. Palogic Value Management L.P. increased its holdings in Ares Capital by 5.0% in the 4th quarter. Palogic Value Management L.P. now owns 104,565 shares of the investment management company’s stock valued at $2,289,000 after buying an additional 4,970 shares during the period. Sculati Wealth Management LLC raised its position in shares of Ares Capital by 2.3% in the 4th quarter. Sculati Wealth Management LLC now owns 111,642 shares of the investment management company’s stock valued at $2,444,000 after buying an additional 2,487 shares in the last quarter. Integrated Advisors Network LLC bought a new position in Ares Capital in the fourth quarter valued at approximately $308,000. Finally, United Advisor Group LLC increased its stake in Ares Capital by 0.7% in the fourth quarter. United Advisor Group LLC now owns 102,316 shares of the investment management company’s stock valued at $2,240,000 after acquiring an additional 725 shares during the last quarter. 27.38% of the stock is currently owned by institutional investors.

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.