Ares Capital (NASDAQ:ARCC) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Ares Capital (NASDAQ:ARCC) posted its earnings results on Tuesday. The investment management company reported $0.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.03, Briefing.com reports. The business had revenue of $755.00 million during the quarter, compared to analysts’ expectations of $714.27 million. Ares Capital had a return on equity of 12.37% and a net margin of 62.77%. During the same period in the prior year, the business earned $0.58 EPS.

Ares Capital Stock Down 1.6 %

ARCC traded down $0.34 during midday trading on Wednesday, reaching $20.94. 4,454,810 shares of the company were exchanged, compared to its average volume of 3,422,751. The company has a market cap of $12.87 billion, a price-to-earnings ratio of 7.17 and a beta of 1.01. Ares Capital has a one year low of $18.55 and a one year high of $21.84. The company’s fifty day moving average price is $21.05 and its 200 day moving average price is $20.66. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.63 and a current ratio of 1.63.

Ares Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 30th. Investors of record on Friday, September 13th will be given a $0.48 dividend. The ex-dividend date is Friday, September 13th. This represents a $1.92 annualized dividend and a yield of 9.17%. Ares Capital’s payout ratio is 65.75%.

Wall Street Analyst Weigh In

Several research analysts recently commented on ARCC shares. Truist Financial increased their target price on shares of Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a report on Thursday, May 2nd. Royal Bank of Canada restated an “outperform” rating and set a $22.00 price objective on shares of Ares Capital in a research note on Thursday, May 23rd. JPMorgan Chase & Co. lifted their target price on Ares Capital from $21.50 to $22.00 and gave the company an “overweight” rating in a research report on Thursday, May 2nd. JMP Securities boosted their price objective on shares of Ares Capital from $21.00 to $22.00 and gave the company a “market outperform” rating in a report on Tuesday. Finally, Oppenheimer boosted their price target on Ares Capital from $21.00 to $22.00 and gave the company an “outperform” rating in a research note on Thursday, May 2nd. Three investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $21.71.

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.