Ares Capital (NASDAQ:ARCC) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

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

Ares Capital Trading Up 0.3 %

NASDAQ ARCC traded up $0.07 on Friday, reaching $20.61. The stock had a trading volume of 2,898,814 shares, compared to its average volume of 3,531,473. The stock has a fifty day moving average price of $20.41 and a two-hundred day moving average price of $20.06. Ares Capital has a 12-month low of $17.53 and a 12-month high of $21.00. 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 has a market capitalization of $12.51 billion, a price-to-earnings ratio of 7.03 and a beta of 0.99.

Ares Capital Announces Dividend

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

Analyst Upgrades and Downgrades

Several research firms recently weighed in on ARCC. B. Riley downgraded 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. Truist Financial raised their price objective on Ares Capital from $22.00 to $23.00 and gave the company a “buy” rating in a research report on Thursday. Wells Fargo & Company boosted their target price on Ares Capital from $19.00 to $20.00 and gave the stock an “equal weight” rating in a research note on Monday, January 29th. JPMorgan Chase & Co. increased their price objective on Ares Capital from $21.50 to $22.00 and gave the company an “overweight” rating in a report on Thursday. Finally, JMP Securities restated a “market outperform” rating and set a $21.00 target price on shares of Ares Capital in a research report on Tuesday, March 26th. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $21.43.

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.