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

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

The newly announced dividend which will be paid on Monday, December 30th. Investors of record on Friday, December 13th will be given a $0.48 dividend. The ex-dividend date of this dividend is Friday, December 13th. This represents a $1.92 dividend on an annualized basis and a yield of 9.08%. Ares Capital’s dividend payout ratio is currently 65.75%.

Analyst Ratings Changes

Several analysts have commented on the stock. UBS Group upgraded shares of Ares Capital to a “hold” rating in a research note on Friday, August 23rd. JMP Securities upped 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 upgraded Ares Capital to a “strong-buy” rating in a research note on Tuesday, July 30th. B. Riley upped their target price on Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a research note on Thursday. Finally, Royal Bank of Canada reiterated an “outperform” rating and set a $22.00 price target on shares of Ares Capital in a research report on Monday, August 5th. Three investment analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $21.86.

Ares Capital Price Performance

The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.05. The firm has a market capitalization of $13.33 billion, a PE ratio of 7.24 and a beta of 1.01. The stock has a 50-day moving average price of $21.00 and a 200 day moving average price of $20.94.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Wednesday, October 30th. The investment management company reported $0.58 EPS for the quarter, missing the consensus estimate of $0.59 by ($0.01). The company had revenue of $755.00 million during the quarter, compared to analysts’ expectations of $770.45 million. Ares Capital had a return on equity of 12.24% and a net margin of 59.76%. Ares Capital’s revenue was up 15.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.59 EPS. Equities analysts forecast that Ares Capital Co. will post 2.39 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ARCC. J.W. Cole Advisors Inc. raised its holdings in shares of Ares Capital by 10.1% during the first quarter. J.W. Cole Advisors Inc. now owns 42,749 shares of the investment management company’s stock valued at $888,000 after acquiring an additional 3,910 shares during the last quarter. Private Advisor Group LLC boosted its stake in Ares Capital by 12.2% during the 1st quarter. Private Advisor Group LLC now owns 264,310 shares of the investment management company’s stock worth $5,503,000 after purchasing an additional 28,718 shares during the last quarter. Diversify Advisory Services LLC purchased a new stake in shares of Ares Capital during the first quarter worth $331,000. Baillie Gifford & Co. raised its position in shares of Ares Capital by 17.9% in the first quarter. Baillie Gifford & Co. now owns 1,183,649 shares of the investment management company’s stock valued at $24,644,000 after buying an additional 179,770 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. boosted its position in Ares Capital by 41.3% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 26,338 shares of the investment management company’s stock worth $548,000 after acquiring an additional 7,695 shares during the last quarter. Institutional investors and hedge funds 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.