Ares Capital Corporation [ARCC] is -8.63% lower this YTD. Is it still time to buy?

Ares Capital Corporation [NASDAQ: ARCC] slipped around -0.34 points on Thursday, while shares priced at $19.30 at the close of the session, down -1.73%. The company report on July 28, 2022 that Ares Capital Corporation Prices Public Offering.


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Ares Capital Corporation (Nasdaq: ARCC) announced that it has priced a public offering of 8,000,000 shares of its common stock. Ares Capital has granted the underwriters an option to purchase up to an additional 1,200,000 shares of common stock. The offering is subject to customary closing conditions and is expected to close on August 2, 2022. The offering of the shares is being 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. On July 28, 2022, the official close price of Ares Capital’s common stock on The NASDAQ Global Select Market under the symbol “ARCC” was $20.11 per share.

Morgan Stanley & Co. LLC, BofA Securities, UBS Investment Bank, RBC Capital Markets, LLC and Wells Fargo Securities are acting as joint lead book-running managers for this offering. Keefe Bruyette & Woods, A Stifel Company, and Raymond James & Associates, Inc. are acting as joint book-running managers for this offering. Goldman Sachs & Co. LLC, Janney Montgomery Scott LLC, J.P. Morgan, Oppenheimer & Co. Inc., Academy Securities, Inc., Compass Point Research & Trading, LLC, Loop Capital Markets LLC, Samuel A. Ramirez & Company, Inc., Siebert Williams Shank & Co., LLC and R. Seelaus & Co., LLC are acting as co-managers for this offering.

Ares Capital Corporation stock is now -8.63% down from its year-to-date (YTD) trading value. ARCC Stock saw the intraday high of $19.67 and lowest of $19.17 per share. The company’s 52-week high price is 22.93, which means current price is +13.33% above from all time high which was touched on 02/09/22.

Compared to the average trading volume of 2.72M shares, ARCC reached a trading volume of 3641826 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 $21.54 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 Outperform, with their previous recommendation back on April 28, 2022. The new note on the price target was released on April 27, 2022, representing the official price target for Ares Capital Corporation stock. Previously, the target price had yet another raise to $22.50, while Hovde Group analysts kept a Market Perform rating on ARCC stock.

The Average True Range (ATR) for Ares Capital Corporation is set at 0.38, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 4.71. The Price to Book ratio for the last quarter was 1.11.

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 -5.99. With this latest performance, ARCC shares dropped by -1.83% in over the last four-week period, additionally sinking by -12.75% over the last 6 months – not to mention a drop of -3.15% 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 39.43, with the RSI for the last a single of trading hit 30.90, and the three-weeks RSI is set at 44.18 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 19.48, while it was recorded at 19.78 for the last single week of trading, and 20.33 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 +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 analysis for Ares Capital Corporation [ARCC]

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%.

Insider trade positions for Ares Capital Corporation [ARCC]

There are presently around $3,551 million, or 32.34% of ARCC stock, in the hands of institutional investors. The top three institutional holders of ARCC stocks are: GOLDMAN SACHS GROUP INC with ownership of 17,067,169, which is approximately 1427.795% of the company’s market cap and around 1.28% of the total institutional ownership; MORGAN STANLEY, holding 11,576,287 shares of the stock with an approximate value of $223.42 million in ARCC stocks shares; and ROYAL BANK OF CANADA, currently with $208.12 million in ARCC stock with ownership of nearly 4.486% 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 345 institutional holders increased their position in Ares Capital Corporation [NASDAQ:ARCC] by around 37,447,949 shares. Additionally, 224 investors decreased positions by around 10,901,740 shares, while 125 investors held positions by with 135,629,087 shares. The mentioned changes placed institutional holdings at 183,978,776 shares, according to the latest SEC report filing. ARCC stock had 60 new institutional investments in for a total of 6,790,512 shares, while 56 institutional investors sold positions of 2,716,187 shares during the same period.

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