Ares Capital’s (ARCC) Outperform Rating Reiterated at Royal Bank of Canada

Royal Bank of Canada reiterated their outperform rating on shares of Ares Capital (NASDAQ:ARCC) in a report released on Monday, Benzinga reports. The brokerage currently has a $22.00 price target on the investment management company’s stock.

Other analysts have also issued research reports about the company. JPMorgan Chase & Co. lifted their price objective on Ares Capital from $21.50 to $22.00 and gave the stock an overweight rating in a report on Thursday, May 2nd. JMP Securities boosted their price target on shares of Ares Capital from $21.00 to $22.00 and gave the company a market outperform rating in a report on Tuesday, July 30th. Compass Point raised shares of Ares Capital to a strong-buy rating in a report on Tuesday, July 30th. Oppenheimer lifted their target price on shares of Ares Capital from $21.00 to $22.00 and gave the company an outperform rating in a research report on Thursday, May 2nd. Finally, Truist Financial increased their price target on shares of Ares Capital from $22.00 to $23.00 and gave the stock a buy rating in a research report on Thursday, May 2nd. Three analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of Moderate Buy and a consensus price target of $21.71.

Ares Capital Price Performance

NASDAQ:ARCC opened at $20.43 on Monday. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.40 and a quick ratio of 1.63. Ares Capital has a one year low of $18.55 and a one year high of $21.84. The company has a fifty day moving average price of $20.93 and a 200 day moving average price of $20.66. The stock has a market cap of $12.55 billion, a P/E ratio of 7.00 and a beta of 1.01.

Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Tuesday, July 30th. The investment management company reported $0.61 EPS for the quarter, beating analysts’ consensus estimates of $0.58 by $0.03. Ares Capital had a net margin of 59.76% and a return on equity of 12.24%. The business had revenue of $755.00 million during the quarter, compared to analyst estimates of $714.27 million. During the same quarter in the prior year, the business earned $0.58 earnings per share. Analysts anticipate that Ares Capital will post 2.38 earnings per share for the current year.

Ares Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 30th. Shareholders of record on Friday, September 13th will be paid a dividend of $0.48 per share. The ex-dividend date is Thursday, September 12th. This represents a $1.92 annualized dividend and a yield of 9.40%. Ares Capital’s dividend payout ratio is 65.75%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Nemes Rush Group LLC acquired a new stake in Ares Capital during the 4th quarter valued at $25,000. Jamison Private Wealth Management Inc. increased its stake in shares of Ares Capital by 62.7% in the second quarter. Jamison Private Wealth Management Inc. now owns 1,233 shares of the investment management company’s stock valued at $26,000 after buying an additional 475 shares in the last quarter. Asset Dedication LLC bought a new position in shares of Ares Capital in the second quarter valued at about $26,000. Valley National Advisers Inc. lifted its position in Ares Capital by 323.3% during the 1st quarter. Valley National Advisers Inc. now owns 1,435 shares of the investment management company’s stock worth $29,000 after buying an additional 1,096 shares in the last quarter. Finally, Pingora Partners LLC bought a new stake in Ares Capital during the 4th quarter worth about $30,000. Institutional investors own 27.38% of the company’s stock.

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.