Ares Capital Corporation [NASDAQ: ARCC] stock went on a downward path that fall over -2.28% on Thursday, amounting to a one-week price decrease of less than -0.57%. The company report on July 27, 2023 at 5:39 PM that Ares Capital Corporation Prices Public Offering of $600 Million 7.000% Unsecured Notes Due 2027.
Ares Capital Corporation (Nasdaq: ARCC) announced that it has priced an underwritten public offering of $600 million in aggregate principal amount of 7.000% notes due 2027. The notes will mature on January 15, 2027 and may be redeemed in whole or in part at Ares Capital’s option at any time at par plus a “make-whole” premium.
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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, Santander US Capital Markets LLC and Truist Securities, Inc. are acting as joint book-running managers for this offering. CIBC World Markets Corp., ICBC Standard Bank Plc, Morgan Stanley & Co. LLC, Barclays Capital Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Goldman Sachs & Co. LLC, Natixis Securities Americas LLC, Regions Securities LLC, SG Americas Securities, LLC and U.S. Bancorp Investments, Inc. are acting as joint lead managers for this offering. ING Financial Markets LLC, R. Seelaus & Co., LLC, Academy Securities, Inc., Citigroup Global Markets Inc., Comerica Securities, Inc., Deutsche Bank Securities Inc., Keefe, Bruyette & Woods, Inc., Loop Capital Markets LLC, Samuel A. Ramirez & Company, Inc. and Siebert Williams Shank & Co., LLC are acting as co-managers for this offering. The offering is expected to close on August 3, 2023, subject to customary closing conditions.
Over the last 12 months, ARCC stock dropped by -1.38%. The one-year Ares Capital Corporation stock forecast points to a potential upside of 7.88. 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 $10.76 billion, with 557.38 million shares outstanding and 550.51 million shares in the current float. Compared to the average trading volume of 2.92M shares, ARCC stock reached a trading volume of 3389839 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 $20.95 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.
B. Riley Securities have made an estimate for Ares Capital Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 16, 2023.
The Average True Range (ATR) for Ares Capital Corporation is set at 0.21, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 4.43. The Price to Book ratio for the last quarter was 1.04.
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 -0.57. With this latest performance, ARCC shares dropped by -0.26% in over the last four-week period, additionally plugging by 10.98% over the last 6 months – not to mention a drop of -1.38% 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 46.18, with the RSI for the last a single of trading hit 42.92, and the three-weeks RSI is set at 48.41 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 19.42, while it was recorded at 19.57 for the last single week of trading, and 18.89 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 +53.30 and a Gross Margin at +78.60. Ares Capital Corporation’s Net Margin is presently recorded at +27.50.
Return on Total Capital for ARCC is now 5.55, given the latest momentum, and Return on Invested Capital for the company is 2.92. Return on Equity for this stock inclined to 6.51, with Return on Assets sitting at 2.78. When it comes to the capital structure of this company, Ares Capital Corporation [ARCC] has a Total Debt to Total Equity ratio set at 128.94. Additionally, ARCC Total Debt to Total Capital is recorded at 56.32, with Total Debt to Total Assets ending up at 55.00. Long-Term Debt to Equity for the company is recorded at 120.92, with the Long-Term Debt to Total Capital now at 52.82.
Reflecting on the efficiency of the workforce at the company, Ares Capital Corporation [ARCC] managed to generate an average of $235,294 per employee. Receivables Turnover for the company is 10.86 with a Total Asset Turnover recorded at a value of 0.10.
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] Institutonal Ownership Details
The top three institutional holders of ARCC stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in ARCC stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in ARCC stock with ownership which is approximately 5.7381%.
