JPMorgan Chase & Co. Increases Ares Capital (NASDAQ:ARCC) Price Target to $22.00

Ares Capital (NASDAQ:ARCC) had its price target boosted by JPMorgan Chase & Co. from $21.50 to $22.00 in a research note published on Thursday, Benzinga reports. The firm currently has an overweight rating on the investment management company’s stock.

Several other equities research analysts have also commented on ARCC. Oppenheimer upped their price objective on Ares Capital from $21.00 to $22.00 and gave the stock an outperform rating in a research note on Thursday. JMP Securities reissued a market outperform rating and set a $21.00 price target on shares of Ares Capital in a report on Tuesday, March 26th. B. Riley downgraded Ares Capital from a buy rating to a neutral rating and set a $21.00 price objective on the stock. in a research note on Monday, January 8th. Truist Financial boosted their price objective on Ares Capital from $22.00 to $23.00 and gave the company a buy rating in a research note on Thursday. Finally, Wells Fargo & Company raised their target price on shares of Ares Capital from $19.00 to $20.00 and gave the stock an equal weight rating in a research note on Monday, January 29th. Three analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of Moderate Buy and an average price target of $21.43.

Ares Capital Stock Performance

NASDAQ:ARCC traded up $0.07 on Thursday, hitting $20.61. The stock had a trading volume of 2,902,245 shares, compared to its average volume of 2,632,858. Ares Capital has a 52-week low of $17.53 and a 52-week high of $21.00. The stock has a market cap of $12.53 billion, a price-to-earnings ratio of 7.06 and a beta of 0.99. The company has a quick ratio of 1.24, a current ratio of 1.63 and a debt-to-equity ratio of 0.99. The business’s 50-day simple moving average is $20.42 and its two-hundred day simple moving average is $20.06.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings data on Wednesday, May 1st. The investment management company reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01). Ares Capital had a return on equity of 12.37% and a net margin of 62.77%. The business had revenue of $701.00 million during the quarter, compared to analysts’ expectations of $703.85 million. During the same period in the previous year, the business posted $0.56 EPS. The business’s quarterly revenue was up 13.4% compared to the same quarter last year. As a group, research analysts predict that Ares Capital will post 2.35 earnings per share for the current year.

Ares Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Friday, June 14th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Thursday, June 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.32%. Ares Capital’s dividend payout ratio is 65.75%.

Institutional Trading of Ares Capital

Institutional investors and hedge funds have recently bought and sold shares of the stock. Richard P Slaughter Associates Inc bought a new stake in shares of Ares Capital in the fourth quarter worth about $1,431,000. NewEdge Wealth LLC purchased a new stake in shares of Ares Capital during the 4th quarter worth approximately $1,497,000. D.B. Root & Company LLC bought a new position in shares of Ares Capital during the 3rd quarter valued at approximately $1,260,000. Anchor Investment Management LLC purchased a new position in shares of Ares Capital in the fourth quarter valued at $123,000. Finally, Allspring Global Investments Holdings LLC grew its holdings in shares of Ares Capital by 29.8% in the third quarter. Allspring Global Investments Holdings LLC now owns 241,231 shares of the investment management company’s stock valued at $4,697,000 after purchasing an additional 55,386 shares in the last quarter. 27.38% of the stock is currently owned by 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.