Ares Capital Corporation [NASDAQ: ARCC] stock went on an upward path that rose over 1.29% on Wednesday, amounting to a one-week price increase of more than 1.70%. The company report on July 29, 2021 that Ares Capital Corporation Announces Public Offering.
Ares Capital Corporation (Nasdaq: ARCC) announced that it plans to make a public offering of 12,500,000 shares of its common stock. Ares Capital also plans to grant the underwriters an option to purchase up to an additional 1,875,000 shares of common stock. The offering of the shares will be made under Ares Capital’s shelf registration statement filed with the Securities and Exchange Commission on June 3, 2021, which became effective automatically upon filing.
Morgan Stanley & Co. LLC, BofA Securities and Wells Fargo Securities are acting as joint lead book-running managers for this offering. Goldman Sachs & Co. LLC, J.P. Morgan, RBC Capital Markets, LLC, UBS Investment Bank, Keefe Bruyette & Woods and Raymond James & Associates, Inc. are acting as joint book-running managers for this offering. Compass Point Research & Trading, LLC, Janney Montgomery Scott LLC, JMP Securities LLC and Oppenheimer & Co. are acting as co-managers for this offering.
Over the last 12 months, ARCC stock rose by 48.76%. The one-year Ares Capital Corporation stock forecast points to a potential downside of -0.79. The average equity rating for ARCC stock is currently 1.70, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $8.99 billion, with 440.94 million shares outstanding. Compared to the average trading volume of 2.04M shares, ARCC stock reached a trading volume of 2452406 in the most recent trading day, which is why market watchdogs consider the stock to be active.
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 0.24, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 5.87. The Price to Book ratio for the last quarter was 1.17.
ARCC Stock Performance Analysis:
Ares Capital Corporation [ARCC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.70. With this latest performance, ARCC shares gained by 3.66% in over the last four-week period, additionally plugging by 16.66% over the last 6 months – not to mention a rise of 48.76% 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 64.95, with the RSI for the last a single of trading hit 70.00, and the three-weeks RSI is set at 61.91 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 19.67, while it was recorded at 20.08 for the last single week of trading, and 17.94 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
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 $2,789 million, or 32.37% 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 0.62% of the total institutional ownership; MORGAN STANLEY, holding 10,006,496 shares of the stock with an approximate value of $203.93 million in ARCC stocks shares; and BAILLIE GIFFORD & CO, currently with $113.21 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 July and at the time of the July reporting period, where 257 institutional holders increased their position in Ares Capital Corporation [NASDAQ:ARCC] by around 11,823,776 shares. Additionally, 213 investors decreased positions by around 9,988,376 shares, while 115 investors held positions by with 115,017,467 shares. The mentioned changes placed institutional holdings at 136,829,619 shares, according to the latest SEC report filing. ARCC stock had 55 new institutional investments in for a total of 3,154,330 shares, while 51 institutional investors sold positions of 2,427,364 shares during the same period.