Ares Capital Corporation [ARCC] Stock trading around $22.44 per share: What’s Next?

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Ares Capital Corporation [NASDAQ: ARCC] surged by $0.23 during the normal trading session on Wednesday and reaching a high of $22.53 during the day while it closed the day at $22.44. The company report on April 5, 2022 that Ares Capital Corporation Increases and Extends Its Revolving Credit Facility.

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Facility Upsized by Approximately $550 million to $4.8 billion.

Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced today that it has increased commitments under its Revolving Credit Facility (the “Facility”) to approximately $4.8 billion and extended the final maturity date to March 31, 2027. The Facility is led by JP Morgan, Bank of America, Truist, MUFG Bank, Sumitomo Mitsui Banking Corporation and Wells Fargo and includes a total of 39 lenders. As part of this amendment, certain currency reference rates used to determine the borrowing interest rate were updated, including replacing the LIBOR rate with Term SOFR plus an applicable credit spread adjustment. Pricing and advance rates are otherwise unchanged on the Facility.

Ares Capital Corporation stock has also gained 5.85% of its value over the past 7 days. However, ARCC stock has inclined by 5.02% in the 3 months of the year. Over the past six months meanwhile, it has gained 6.61% and gained 6.06% year-on date.

The market cap for ARCC stock reached $10.34 billion, with 460.75 million shares outstanding. Compared to the average trading volume of 3.64M shares, ARCC reached a trading volume of 2918459 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to 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 $22.93 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 1.60. 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.

Hovde Group have made an estimate for Ares Capital Corporation shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on March 07, 2022. While these analysts kept the previous recommendation, Janney raised their target price to Buy. The new note on the price target was released on December 03, 2021, representing the official price target for Ares Capital Corporation stock. On December 10, 2020, analysts increased their price target for ARCC shares from 16 to 17.

The Average True Range (ATR) for Ares Capital Corporation is set at 0.40, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 5.97. The Price to Book ratio for the last quarter was 1.21.

ARCC stock trade performance evaluation

Ares Capital Corporation [ARCC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.85. With this latest performance, ARCC shares gained by 9.36% in over the last four-week period, additionally plugging by 6.61% over the last 6 months – not to mention a rise of 14.25% 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 70.78, with the RSI for the last a single of trading hit 79.45, and the three-weeks RSI is set at 64.70 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 21.26, while it was recorded at 22.06 for the last single week of trading, and 20.77 for the last 200 days.

Ares Capital Corporation [ARCC]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Ares Capital Corporation [ARCC] shares currently have an operating margin of +95.60 and a Gross Margin at +68.72. Ares Capital Corporation’s Net Margin is presently recorded at +74.94.

Return on Equity for this stock inclined to 19.53, with Return on Assets sitting at 8.46.

Earnings per share (EPS) analysis for Ares Capital Corporation [ARCC] stock

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 Ownership positions

There are presently around $3,210 million, or 31.85% of ARCC stock, in the hands of institutional investors. The top three institutional holders of ARCC stocks are: MORGAN STANLEY with ownership of 10,750,928, which is approximately 7.15% of the company’s market cap and around 0.60% of the total institutional ownership; ROYAL BANK OF CANADA, holding 10,280,103 shares of the stock with an approximate value of $228.32 million in ARCC stocks shares; and OMERS ADMINISTRATION CORP, currently with $128.33 million in ARCC stock with ownership of nearly 1.955% 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 333 institutional holders increased their position in Ares Capital Corporation [NASDAQ:ARCC] by around 13,434,267 shares. Additionally, 192 investors decreased positions by around 9,495,744 shares, while 124 investors held positions by with 121,595,027 shares. The mentioned changes placed institutional holdings at 144,525,038 shares, according to the latest SEC report filing. ARCC stock had 90 new institutional investments in for a total of 4,780,129 shares, while 40 institutional investors sold positions of 2,733,527 shares during the same period.