Ares Capital (NASDAQ:ARCC) Hits New 52-Week High Following Dividend Announcement

Ares Capital Co. (NASDAQ:ARCC - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday following a dividend announcement from the company. The company traded as high as $22.04 and last traded at $21.87, with a volume of 602113 shares changing hands. The stock had previously closed at $21.57.

The newly announced dividend which will be paid on Monday, December 30th. Shareholders of record on Friday, December 13th will be given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 8.99%. Ares Capital's dividend payout ratio is currently 65.75%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. JMP Securities lifted their price target on Ares Capital from $21.00 to $22.00 and gave the stock a "market outperform" rating in a research report on Tuesday, July 30th. Royal Bank of Canada reaffirmed an "outperform" rating and issued a $22.00 price objective on shares of Ares Capital in a research note on Monday, August 5th. Compass Point upgraded Ares Capital to a "strong-buy" rating in a research report on Tuesday, July 30th. Finally, UBS Group raised shares of Ares Capital to a "hold" rating in a research note on Friday, August 23rd. Three equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $21.71.

Ares Capital Stock Down 1.0 %

The company has a debt-to-equity ratio of 1.05, a current ratio of 1.40 and a quick ratio of 1.40. The company has a market cap of $13.47 billion, a PE ratio of 7.39 and a beta of 1.01. The business's fifty day simple moving average is $20.99 and its two-hundred day simple moving average is $20.93.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its earnings results on Tuesday, July 30th. The investment management company reported $0.61 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.03. Ares Capital had a net margin of 59.76% and a return on equity of 12.24%. The company had revenue of $755.00 million for the quarter, compared to analyst estimates of $714.27 million. During the same period in the previous year, the business posted $0.58 EPS. On average, analysts predict that Ares Capital Co. will post 2.39 earnings per share for the current year.

Hedge Funds Weigh In On Ares Capital

Several hedge funds have recently made changes to their positions in ARCC. Jamison Private Wealth Management Inc. grew its holdings in 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 purchasing an additional 475 shares during the last quarter. Capital Investment Advisors LLC grew its stake in Ares Capital by 1.6% in the 2nd quarter. Capital Investment Advisors LLC now owns 32,691 shares of the investment management company's stock worth $681,000 after acquiring an additional 499 shares during the period. Lewis Asset Management LLC lifted its holdings in shares of Ares Capital by 2.1% during the 1st quarter. Lewis Asset Management LLC now owns 24,805 shares of the investment management company's stock worth $516,000 after acquiring an additional 500 shares during the period. JBR Co Financial Management Inc increased its position in Ares Capital by 1.5% during the third quarter. JBR Co Financial Management Inc now owns 33,047 shares of the investment management company's stock worth $692,000 after purchasing an additional 500 shares during the last quarter. Finally, Onyx Bridge Wealth Group LLC grew its stake in shares of Ares Capital by 1.2% during the 3rd quarter. Onyx Bridge Wealth Group LLC now owns 43,609 shares of the investment management company's stock valued at $913,000 after buying an additional 531 shares during the period. Hedge funds and other 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.