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

Ares Capital (NASDAQ:ARCC) released its earnings results on Tuesday. The investment management company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.58 by $0.03, Briefing.com reports. The firm had revenue of $755.00 million during the quarter, compared to analysts’ expectations of $714.27 million. Ares Capital had a net margin of 59.76% and a return on equity of 12.53%. During the same period in the prior year, the company earned $0.58 EPS.

Ares Capital Price Performance

Shares of Ares Capital stock traded down $0.05 during mid-day trading on Thursday, reaching $20.89. 1,003,853 shares of the stock were exchanged, compared to its average volume of 3,405,828. The company has a market cap of $12.84 billion, a price-to-earnings ratio of 7.17 and a beta of 1.01. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 0.99. The firm has a 50-day simple moving average of $21.05 and a 200 day simple moving average of $20.66. Ares Capital has a fifty-two week low of $18.55 and a fifty-two week high of $21.84.

Ares Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 30th. Investors of record on Friday, September 13th will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.19%. The ex-dividend date of this dividend is Friday, September 13th. Ares Capital’s dividend payout ratio (DPR) is currently 65.75%.

Analyst Upgrades and Downgrades

ARCC has been the subject of several research analyst reports. Compass Point upgraded shares of Ares Capital to a “strong-buy” rating in a research note on Tuesday. Oppenheimer upped their target price on shares of Ares Capital from $21.00 to $22.00 and gave the company an “outperform” rating in a research note on Thursday, May 2nd. Truist Financial upped their target price on shares of Ares Capital from $22.00 to $23.00 and gave the company a “buy” rating in a research note on Thursday, May 2nd. Royal Bank of Canada restated an “outperform” rating and issued a $22.00 price objective on shares of Ares Capital in a research note on Thursday, May 23rd. Finally, JMP Securities increased their price objective on shares of Ares Capital from $21.00 to $22.00 and gave the company a “market outperform” rating in a research note on Tuesday. Three investment analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $21.71.

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.