Ares Capital Corporation [ARCC] is -24.02% lower this YTD. Is it still time to buy?

Ares Capital Corporation [NASDAQ: ARCC] traded at a high on 09/08/20, posting a 0.57 gain after which it closed the day’ session at $14.17. The company report on August 4, 2020 that Ares Capital Corporation Announces June 30, 2020 Financial Results and Declares Third Quarter 2020 Dividend of $0.40 Per Share.


Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced that its Board of Directors has declared a third quarter dividend of $0.40 per share. The third quarter dividend is payable on September 30, 2020 to stockholders of record as of September 15, 2020.

The results of the trading session contributed to over 2928178 shares changing hands. Over the past one week, the price volatility of Ares Capital Corporation stands at 2.84% while the volatility over the past one month is 2.21%.

The market cap for ARCC stock reached $5.99 billion, with 422.62 million shares outstanding. Compared to the average trading volume of 2.29M shares, ARCC reached a trading volume of 2928178 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Ares Capital Corporation [ARCC]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARCC shares is $15.83 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ARCC stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Raymond James have made an estimate for Ares Capital Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 16, 2020. The new note on the price target was released on April 13, 2020, representing the official price target for Ares Capital Corporation stock. Previously, the target price had yet another raise to $13, while Compass Point analysts kept a Buy rating on ARCC stock.

The Average True Range (ATR) for Ares Capital Corporation is set at 0.35, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 4.01. The Price to Book ratio for the last quarter was 0.90.

How has ARCC stock performed recently?

Ares Capital Corporation [ARCC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.67. With this latest performance, ARCC shares dropped by -4.71% in over the last four-week period, additionally sinking by -13.70% over the last 6 months – not to mention a drop of -25.11% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ARCC stock in for the last two-week period is set at 44.55, with the RSI for the last a single of trading hit 40.74, and the three-weeks RSI is set at 46.64 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 14.33, while it was recorded at 14.34 for the last single week of trading, and 15.44 for the last 200 days.

Ares Capital Corporation [ARCC]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Ares Capital Corporation [ARCC] shares currently have an operating margin of +53.92 and a Gross Margin at +72.97. Ares Capital Corporation’s Net Margin is presently recorded at +56.56.

Return on Total Capital for ARCC is now 5.58, given the latest momentum, and Return on Invested Capital for the company is 5.92. Return on Equity for this stock inclined to 10.74, with Return on Assets sitting at 5.71. When it comes to the capital structure of this company, Ares Capital Corporation [ARCC] has a Total Debt to Total Equity ratio set at 95.36. Additionally, ARCC Total Debt to Total Capital is recorded at 48.81, with Total Debt to Total Assets ending up at 47.77. Long-Term Debt to Equity for the company is recorded at 95.04, with the Long-Term Debt to Total Capital now at 48.65.

Reflecting on the efficiency of the workforce at the company, Ares Capital Corporation [ARCC] managed to generate an average of $660,833 per employee. Receivables Turnover for the company is 11.98 with a Total Asset Turnover recorded at a value of 0.10.

Earnings analysis for Ares Capital Corporation [ARCC]

With the latest financial reports released by the company, Ares Capital Corporation posted 0.48/share EPS, while the average EPS was predicted by analysts to be reported at 0.46/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 4.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ARCC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ares Capital Corporation go to -2.00%.

Insider trade positions for Ares Capital Corporation [ARCC]

There are presently around $1,946 million, or 36.16% of ARCC stock, in the hands of institutional investors. The top three institutional holders of ARCC stocks are: MORGAN STANLEY with ownership of 9,648,405, which is approximately 13.552% of the company’s market cap and around 0.57% of the total institutional ownership; ROYAL BANK OF CANADA, holding 7,725,964 shares of the stock with an approximate value of $109.48 million in ARCC stocks shares; and OMERS ADMINISTRATION CORP, currently with $67.86 million in ARCC stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Ares Capital Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 210 institutional holders increased their position in Ares Capital Corporation [NASDAQ:ARCC] by around 14,687,690 shares. Additionally, 257 investors decreased positions by around 19,322,314 shares, while 91 investors held positions by with 103,297,105 shares. The mentioned changes placed institutional holdings at 137,307,109 shares, according to the latest SEC report filing. ARCC stock had 52 new institutional investments in for a total of 4,039,804 shares, while 70 institutional investors sold positions of 6,226,149 shares during the same period.

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