Ares Capital (NASDAQ:ARCC) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

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Ares Capital (NASDAQ:ARCC) released its quarterly earnings data on Tuesday, July 30th. The investment management company reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.05, RTT News reports. The company had revenue of $382.00 million during the quarter, compared to analyst estimates of $363.60 million. Ares Capital had a net margin of 53.81% and a return on equity of 10.72%. Ares Capital’s revenue was up 14.7% compared to the same quarter last year. During the same period last year, the business earned $0.60 earnings per share.

ARCC stock opened at $18.34 on Friday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 2.10 and a current ratio of 2.10. Ares Capital has a one year low of $14.50 and a one year high of $18.83. The company has a market capitalization of $7.91 billion, a PE ratio of 9.97 and a beta of 0.61. The company’s 50 day moving average price is $18.23 and its two-hundred day moving average price is $17.64.

In other news, Director Daniel G. Kelly, Jr. bought 4,500 shares of the business’s stock in a transaction dated Monday, June 10th. The shares were purchased at an average price of $18.01 per share, for a total transaction of $81,045.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Penelope F. Roll bought 2,000 shares of the business’s stock in a transaction dated Tuesday, August 6th. The stock was purchased at an average price of $18.36 per share, for a total transaction of $36,720.00. Following the acquisition, the chief financial officer now directly owns 11,147 shares of the company’s stock, valued at approximately $204,658.92. The disclosure for this purchase can be found here. Insiders bought 18,325 shares of company stock worth $335,488 in the last 90 days. Company insiders own 0.53% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Financial Advantage Inc. increased its position in shares of Ares Capital by 0.8% during the 1st quarter. Financial Advantage Inc. now owns 285,221 shares of the investment management company’s stock valued at $4,888,000 after purchasing an additional 2,178 shares during the last quarter. Baltimore Washington Financial Advisors Inc. increased its position in shares of Ares Capital by 1.0% during the 2nd quarter. Baltimore Washington Financial Advisors Inc. now owns 615,591 shares of the investment management company’s stock valued at $11,044,000 after purchasing an additional 6,194 shares during the last quarter. Ipswich Investment Management Co. Inc. increased its position in shares of Ares Capital by 256.9% during the 1st quarter. Ipswich Investment Management Co. Inc. now owns 73,199 shares of the investment management company’s stock valued at $1,255,000 after purchasing an additional 52,689 shares during the last quarter. LGT Capital Partners LTD. grew its stake in shares of Ares Capital by 7.0% during the 1st quarter. LGT Capital Partners LTD. now owns 1,830,000 shares of the investment management company’s stock valued at $31,366,000 after acquiring an additional 120,000 shares during the period. Finally, Alphasimplex Group LLC bought a new position in shares of Ares Capital during the 1st quarter valued at approximately $1,696,000. 37.42% of the stock is owned by hedge funds and other institutional investors.

A number of equities research analysts recently weighed in on the stock. Raymond James raised their target price on shares of Ares Capital from $19.00 to $19.50 and gave the company an “outperform” rating in a research note on Wednesday, July 31st. Wedbush set a $20.00 target price on shares of Ares Capital and gave the company a “buy” rating in a research note on Tuesday, May 14th. BMO Capital Markets set a $19.00 target price on shares of Ares Capital and gave the company a “hold” rating in a research note on Wednesday, July 31st. National Securities reaffirmed a “buy” rating and issued a $20.00 target price on shares of Ares Capital in a research note on Wednesday, May 1st. Finally, BidaskClub raised shares of Ares Capital from a “hold” rating to a “buy” rating in a research note on Friday, August 9th. Two investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. The company presently has a consensus rating of “Buy” and an average target price of $19.25.

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.

Further Reading: Asset Allocation, Balancing Your Investments

Earnings History for Ares Capital (NASDAQ:ARCC)

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