Ares Capital (NASDAQ:ARCC) Sets New 52-Week High - Here's Why

Ares Capital Co. (NASDAQ:ARCC - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $22.43 and last traded at $22.43, with a volume of 2932243 shares. The stock had previously closed at $22.10.

Wall Street Analyst Weigh In

Several analysts recently issued reports on ARCC shares. StockNews.com raised shares of Ares Capital from a "sell" rating to a "hold" rating in a report on Tuesday, November 12th. B. Riley increased their price target on shares of Ares Capital from $21.00 to $22.00 and gave the company a "neutral" rating in a report on Thursday, October 31st. Finally, Wells Fargo & Company raised shares of Ares Capital from an "equal weight" rating to an "overweight" rating in a report on Thursday, December 12th. Three investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $22.29.

Ares Capital Trading Up 1.5 %

The company has a market cap of $14.49 billion, a price-to-earnings ratio of 8.63 and a beta of 1.00. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.29 and a current ratio of 1.29. The business's 50 day moving average price is $21.82 and its 200-day moving average price is $21.24.

Ares Capital (NASDAQ:ARCC - Get Free Report) last announced its earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.59 by ($0.01). The firm had revenue of $755.00 million for the quarter, compared to analyst estimates of $770.45 million. Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The company's revenue for the quarter was up 15.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.59 EPS. On average, research analysts forecast that Ares Capital Co. will post 2.36 EPS for the current year.

Ares Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, December 30th. Shareholders of record on Friday, December 13th were given a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 8.56%. The ex-dividend date was Friday, December 13th. Ares Capital's payout ratio is presently 73.85%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ARCC. Horizon Financial Services LLC bought a new position in shares of Ares Capital in the 3rd quarter valued at about $28,000. Blue Trust Inc. boosted its stake in shares of Ares Capital by 56.8% in the 3rd quarter. Blue Trust Inc. now owns 2,510 shares of the investment management company's stock valued at $52,000 after purchasing an additional 909 shares during the last quarter. Quarry LP bought a new position in shares of Ares Capital in the 3rd quarter valued at about $67,000. Centennial Bank AR bought a new position in shares of Ares Capital in the 3rd quarter valued at about $102,000. Finally, FSC Wealth Advisors LLC boosted its stake in shares of Ares Capital by 562.5% in the 3rd quarter. FSC Wealth Advisors LLC now owns 5,300 shares of the investment management company's stock valued at $111,000 after purchasing an additional 4,500 shares during the last quarter. 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.