Ares Capital Corporation [NASDAQ: ARCC] price plunged by -1.20 percent to reach at -$0.24. The company report on June 4, 2021 that Ares Capital Corporation Prices Public Offering of $850 Million 2.875% Unsecured Notes Due 2028.
Ares Capital Corporation (Nasdaq: ARCC) announced that it has priced an underwritten public offering of $850 million in aggregate principal amount of 2.875% notes due 2028. The notes will mature on June 15, 2028 and may be redeemed in whole or in part at Ares Capital’s option at any time at par plus a “make-whole” premium, if applicable.
BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC and Truist Securities, Inc. are acting as joint book-running managers for this offering. BNP Paribas Securities Corp., Capital One Securities, Inc., CIBC World Markets Corp., HSBC Securities (USA) Inc., ICBC Standard Bank Plc, Natixis Securities Americas LLC, Regions Securities LLC, SG Americas Securities, LLC and R. Seelaus & Co., LLC are acting as joint lead managers for this offering. Barclays Capital Inc., ING Financial Markets LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc., BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, JMP Securities LLC and Keefe, Bruyette & Woods, Inc. are acting as co-managers for this offering. The offering is expected to close on June 10, 2021, subject to customary closing conditions.
A sum of 3939906 shares traded at recent session while its average daily volume was at 1.98M shares. Ares Capital Corporation shares reached a high of $20.10 and dropped to a low of $19.70 until finishing in the latest session at $19.73.
The one-year ARCC stock forecast points to a potential upside of 2.42. The average equity rating for ARCC stock is currently 1.70, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on 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 $20.22 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.
JP Morgan have made an estimate for Ares Capital Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 10, 2020. While these analysts kept the previous recommendation, Barclays raised their target price from $16 to $17. The new note on the price target was released on December 10, 2020, representing the official price target for Ares Capital Corporation stock.
The Average True Range (ATR) for Ares Capital Corporation is set at 0.26, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 5.63. The Price to Book ratio for the last quarter was 1.13.
ARCC Stock Performance Analysis:
Ares Capital Corporation [ARCC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.25. With this latest performance, ARCC shares gained by 4.17% in over the last four-week period, additionally plugging by 14.44% over the last 6 months – not to mention a rise of 26.39% 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 57.94, with the RSI for the last a single of trading hit 57.75, and the three-weeks RSI is set at 57.42 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 19.32, while it was recorded at 19.83 for the last single week of trading, and 17.02 for the last 200 days.
Insight into Ares Capital Corporation Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Ares Capital Corporation [ARCC] shares currently have an operating margin of +61.05 and a Gross Margin at +73.59. Ares Capital Corporation’s Net Margin is presently recorded at +35.91.
Return on Total Capital for ARCC is now 5.43, given the latest momentum, and Return on Invested Capital for the company is 3.20. Return on Equity for this stock inclined to 6.61, with Return on Assets sitting at 3.11. When it comes to the capital structure of this company, Ares Capital Corporation [ARCC] has a Total Debt to Total Equity ratio set at 119.15. Additionally, ARCC Total Debt to Total Capital is recorded at 54.37, with Total Debt to Total Assets ending up at 52.79. Long-Term Debt to Equity for the company is recorded at 118.92, with the Long-Term Debt to Total Capital now at 54.27.
Reflecting on the efficiency of the workforce at the company, Ares Capital Corporation [ARCC] managed to generate an average of $333,793 per employee. Receivables Turnover for the company is 7.62 with a Total Asset Turnover recorded at a value of 0.09.
ARCC Stock EPS
With the latest financial reports released by the company, Ares Capital Corporation posted 0.39/share EPS, while the average EPS was predicted by analysts to be reported at 0.38/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2.60%. 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 -0.90%.
Ares Capital Corporation [ARCC] Insider Position Details
There are presently around $2,743 million, or 31.80% of ARCC stock, in the hands of institutional investors. The top three institutional holders of ARCC stocks are: ROYAL BANK OF CANADA with ownership of 10,106,711, which is approximately 0.643% of the company’s market cap and around 0.63% of the total institutional ownership; MORGAN STANLEY, holding 10,006,496 shares of the stock with an approximate value of $197.43 million in ARCC stocks shares; and BAILLIE GIFFORD & CO, currently with $109.6 million in ARCC stock with ownership of nearly 195.34% of the company’s market capitalization.
Positions in Ares Capital Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 257 institutional holders increased their position in Ares Capital Corporation [NASDAQ:ARCC] by around 12,868,980 shares. Additionally, 212 investors decreased positions by around 9,484,166 shares, while 119 investors held positions by with 116,658,195 shares. The mentioned changes placed institutional holdings at 139,011,341 shares, according to the latest SEC report filing. ARCC stock had 61 new institutional investments in for a total of 3,074,460 shares, while 49 institutional investors sold positions of 2,170,581 shares during the same period.