Market Analysts see Ares Capital Corporation [ARCC] gaining to $14. Time to buy?

Ares Capital Corporation [NASDAQ: ARCC] traded at a high on 10/23/20, posting a 1.15 gain after which it closed the day’ session at $14.04. The company report on October 1, 2020 that Ares Capital Corporation Schedules Earnings Release for the Third Quarter Ended September 30, 2020.

Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced today that it will report earnings for the third quarter ended September 30, 2020 on Tuesday, October 27, 2020 prior to the opening of the Nasdaq Global Select Market. Ares Capital invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) on the same day to discuss its third quarter ended September 30, 2020 financial results.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at www.arescapitalcorp.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing (888) 317-6003. International callers can access the conference call by dialing +1 (412) 317-6061. All callers will need to enter the Participant Elite Entry Number 4827838 followed by the # sign and reference “Ares Capital Corporation” once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available approximately one hour after the end of the call through November 10, 2020 at 5:00 p.m. (Eastern Time) to domestic callers by dialing (877) 344-7529 and to international callers by dialing +1 (412) 317-0088. For all replays, please reference conference number 10147945. An archived replay will also be available through November 10, 2020 on a webcast link located on the Home page of the Investor Resources section of Ares Capital’s website.

The results of the trading session contributed to over 1389159 shares changing hands. Over the past one week, the price volatility of Ares Capital Corporation stands at 1.53% while the volatility over the past one month is 1.97%.

The market cap for ARCC stock reached $5.93 billion, with 422.62 million shares outstanding. Compared to the average trading volume of 2.02M shares, ARCC reached a trading volume of 1389159 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 $15.88 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 0.25, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 3.98. The Price to Book ratio for the last quarter was 0.89.

How has ARCC stock performed recently?

Ares Capital Corporation [ARCC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.21. With this latest performance, ARCC shares gained by 5.80% in over the last four-week period, additionally plugging by 14.52% over the last 6 months – not to mention a drop of -23.74% 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 49.87, with the RSI for the last a single of trading hit 51.10, and the three-weeks RSI is set at 49.04 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 14.15, while it was recorded at 13.90 for the last single week of trading, and 14.67 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 $1,949 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 $108.47 million in ARCC stocks shares; and OMERS ADMINISTRATION CORP, currently with $67.24 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 207 institutional holders increased their position in Ares Capital Corporation [NASDAQ:ARCC] by around 17,043,124 shares. Additionally, 251 investors decreased positions by around 19,259,131 shares, while 90 investors held positions by with 102,515,184 shares. The mentioned changes placed institutional holdings at 138,817,439 shares, according to the latest SEC report filing. ARCC stock had 46 new institutional investments in for a total of 6,101,298 shares, while 70 institutional investors sold positions of 6,441,037 shares during the same period.

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