FY2024 Earnings Forecast for Ares Capital Issued By B. Riley

Ares Capital Co. (NASDAQ:ARCC) – Equities researchers at B. Riley dropped their FY2024 earnings per share (EPS) estimates for shares of Ares Capital in a report released on Thursday, October 31st. B. Riley analyst B. Rowe now expects that the investment management company will post earnings per share of $2.37 for the year, down from their prior 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) last issued its quarterly earnings results on Wednesday, October 30th. The investment management company reported $0.58 earnings per share for the quarter, missing the consensus estimate of $0.59 by ($0.01). Ares Capital had a return on equity of 12.06% and a net margin of 53.71%. The business had revenue of $755.00 million during the quarter, compared to analyst estimates of $770.45 million. During the same quarter last year, the company posted $0.59 EPS. Ares Capital’s quarterly revenue was up 15.3% compared to the same quarter last year.

Several other equities analysts have also recently issued reports on ARCC. Royal Bank of Canada reiterated an “outperform” rating and issued a $22.00 target price on shares of Ares Capital in a research note on Monday, August 5th. Compass Point raised Ares Capital to a “strong-buy” rating in a report on Tuesday, July 30th. JMP Securities boosted their price target on shares of Ares Capital from $21.00 to $22.00 and gave the stock a “market outperform” rating in a report on Tuesday, July 30th. Finally, UBS Group raised Ares Capital to a “hold” rating in a research note on Friday, August 23rd. Three investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Ares Capital currently has a consensus rating of “Moderate Buy” and an average target price of $21.86.

Ares Capital Stock Down 0.7 %

Shares of ARCC opened at $21.00 on Monday. Ares Capital has a 52 week low of $19.24 and a 52 week high of $22.05. The company has a market capitalization of $13.57 billion, a price-to-earnings ratio of 8.08 and a beta of 1.01. The stock’s 50-day moving average price is $21.00 and its 200-day moving average price is $20.95. The company has a quick ratio of 1.40, a current ratio of 1.29 and a debt-to-equity ratio of 1.06.

Ares Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Investors of record on Friday, December 13th will be given 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 9.14%. Ares Capital’s payout ratio is currently 73.85%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. International Assets Investment Management LLC lifted its stake in Ares Capital by 2,104.7% during the 3rd quarter. International Assets Investment Management LLC now owns 3,613,285 shares of the investment management company’s stock worth $756,620,000 after acquiring an additional 3,449,395 shares in the last quarter. Van ECK Associates Corp increased its stake in Ares Capital by 20.2% in the second quarter. Van ECK Associates Corp now owns 11,681,109 shares of the investment management company’s stock valued at $243,434,000 after purchasing an additional 1,961,166 shares during the last quarter. Cetera Investment Advisers raised its holdings in Ares Capital by 143.9% during the first quarter. Cetera Investment Advisers now owns 820,390 shares of the investment management company’s stock worth $17,081,000 after purchasing an additional 484,088 shares in the last quarter. Magnolia Capital Advisors LLC purchased a new position in shares of Ares Capital in the 2nd quarter valued at $9,815,000. Finally, 1832 Asset Management L.P. raised its stake in Ares Capital by 52.7% during the 1st quarter. 1832 Asset Management L.P. now owns 1,354,097 shares of the investment management company’s stock worth $28,192,000 after acquiring an additional 467,535 shares in the last quarter. 27.38% of the stock is currently owned by hedge funds and other institutional investors.

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.