Ares Capital (NASDAQ:ARCC) Stock Price Down 3.7% – What’s Next?

Ares Capital Co. (NASDAQ:ARCC)’s share price dropped 3.7% during trading on Thursday . The stock traded as low as $21.56 and last traded at $21.58. Approximately 2,215,353 shares traded hands during trading, a decline of 41% from the average daily volume of 3,734,372 shares. The stock had previously closed at $22.41.

Analyst Ratings Changes

ARCC has been the subject of a number of research reports. Royal Bank of Canada raised their price target on shares of Ares Capital from $23.00 to $24.00 and gave the stock an “outperform” rating in a report on Friday, February 7th. StockNews.com cut Ares Capital from a “hold” rating to a “sell” rating in a research note on Friday, February 7th. Wells Fargo & Company reduced their target price on 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 downgraded shares of Ares Capital from an “outperform” rating to a “market perform” rating in a report on Thursday, February 6th. Finally, Keefe, Bruyette & Woods raised their target price on Ares Capital from $22.00 to $23.00 and gave the stock an “outperform” rating in a research report on Friday, February 7th. One analyst has rated the stock with a sell rating, three have issued a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.94.

Ares Capital Stock Performance

The company has a market capitalization of $14.73 billion, a P/E ratio of 8.78 and a beta of 1.00. The company’s 50 day moving average is $22.74 and its 200-day moving average is $22.01. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 1.03.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, February 5th. The investment management company reported $0.55 earnings per share 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 fiscal year.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Friday, March 14th were issued a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 8.92%. The ex-dividend date was Friday, March 14th. Ares Capital’s payout ratio is currently 78.37%.

Institutional Investors Weigh In On Ares Capital

Several institutional investors and hedge funds have recently added to or reduced their stakes in ARCC. Montag & Caldwell LLC bought a new stake in shares of Ares Capital during the 4th quarter valued at about $33,000. VSM Wealth Advisory LLC bought a new position in Ares Capital in the fourth quarter worth approximately $35,000. Promus Capital LLC purchased a new position in shares of Ares Capital during the 4th quarter worth $48,000. SRS Capital Advisors Inc. bought a new stake in shares of Ares Capital during the 4th quarter valued at $60,000. Finally, Montag A & Associates Inc. lifted its position in Ares Capital by 92.6% during the fourth quarter. Montag A & Associates Inc. now owns 2,889 shares of the investment management company’s stock valued at $63,000 after purchasing an additional 1,389 shares in 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.