FY2024 Earnings Forecast for Ares Capital Issued By B. Riley

Ares Capital Co. (NASDAQ:ARCC - Free Report) - Stock analysts at B. Riley dropped their FY2024 earnings per share (EPS) estimates for Ares Capital in a research note issued on Thursday, October 31st. B. Riley analyst B. Rowe now anticipates that the investment management company will earn $2.37 per share for the year, down from their previous forecast of $2.41. B. Riley has a "Neutral" rating and a $22.00 price target on the stock. The consensus estimate for Ares Capital's current full-year earnings is $2.37 per share. B. Riley also issued estimates for Ares Capital's Q4 2024 earnings at $0.59 EPS.

Ares Capital (NASDAQ:ARCC - Get Free Report) last posted its quarterly earnings data on Wednesday, October 30th. The investment management company reported $0.58 earnings per share for the quarter, missing analysts' consensus estimates of $0.59 by ($0.01). The business had revenue of $755.00 million during 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 firm's revenue for the quarter was up 15.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.59 EPS.

A number of other analysts have also recently commented 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 set a $22.00 price target on shares of Ares Capital in a research report on Monday, August 5th. Compass Point raised Ares Capital to a "strong-buy" rating in a research report on Tuesday, July 30th. Finally, UBS Group raised Ares Capital to a "hold" rating in a research report on Friday, August 23rd. Three research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, Ares Capital has a consensus rating of "Moderate Buy" and a consensus price target of $21.86.

Ares Capital Stock Down 0.6 %

Shares of Ares Capital stock traded down $0.12 during trading on Monday, reaching $20.88. The company's stock had a trading volume of 2,953,758 shares, compared to its average volume of 3,365,387. The company has a 50-day simple moving average of $21.00 and a two-hundred day simple moving average of $20.95. Ares Capital has a 1-year low of $19.32 and a 1-year high of $22.05. The company has a quick ratio of 1.40, a current ratio of 1.29 and a debt-to-equity ratio of 1.06. The company has a market cap of $13.49 billion, a price-to-earnings ratio of 8.03 and a beta of 1.01.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Shareholders of record on Friday, December 13th will be paid a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, December 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.20%. Ares Capital's payout ratio is currently 73.85%.

Hedge Funds Weigh In On Ares Capital

A number of institutional investors have recently modified their holdings of the stock. Jamison Private Wealth Management Inc. increased its stake in shares of Ares Capital by 62.7% in the 2nd 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 in the last quarter. Asset Dedication LLC purchased a new position in shares of Ares Capital in the 2nd quarter valued at about $26,000. Hobbs Group Advisors LLC purchased a new position in shares of Ares Capital in the 2nd quarter valued at about $32,000. nVerses Capital LLC increased its stake in shares of Ares Capital by 88.9% in the 2nd quarter. nVerses Capital LLC now owns 1,700 shares of the investment management company's stock valued at $35,000 after purchasing an additional 800 shares in the last quarter. Finally, Ridgewood Investments LLC purchased a new position in shares of Ares Capital in the 2nd quarter valued at about $42,000. Hedge funds and other 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.