Ares Capital Corporation [ARCC] Stock trading around $20.30 per share: What’s Next?

Ares Capital Corporation [NASDAQ: ARCC] loss -0.54% or -0.11 points to close at $20.30 with a heavy trading volume of 3201536 shares. The company report on January 3, 2024 at 7:00 AM that Ares Capital Corporation Schedules Earnings Release for the Fourth Quarter and Fiscal Year Ended December 31, 2023.

Ares Capital Corporation (“Ares Capital”) (NASDAQ:ARCC) announced today that it will report earnings for the fourth quarter and fiscal year ended December 31, 2023 on Wednesday, February 7, 2024 prior to the opening of the Nasdaq Global Select Market. Ares Capital invites all interested persons to attend its webcast

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All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at www.arescapitalcorp.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call toll free by dialing +1 (800) 579-2543. International callers can access the conference call by dialing +1 (785) 424-1789. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID ARCCQ124. For interested parties, an archived replay of the call will be available approximately one hour after the end of the call through March 6, 2024 at 5:00 p.m. (Eastern Time) to domestic callers by dialing toll free +1 (800) 753-6121 and to international callers by dialing +1 (402) 220-2676. An archived replay will also be available through March 6, 2024 on a webcast link located on the Home page of the Investor Resources section of Ares Capital’s website.

It opened the trading session at $20.41, the shares rose to $20.43 and dropped to $20.13, the range by which the price of stock traded the whole day. The daily chart for ARCC points out that the company has recorded 5.07% gains over the past six months. However, it is still -19.76% lower than its most recent low trading price.

If we look at the average trading volume of 3.47M shares, ARCC reached to a volume of 3201536 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $20.96 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 Neutral, with their previous recommendation back on January 08, 2024.

The Average True Range (ATR) for Ares Capital Corporation is set at 0.22, with the Price to Sales ratio for ARCC stock in the period of the last 12 months amounting to 4.54. The Price to Book ratio for the last quarter was 1.07.

Trading performance analysis for ARCC stock

Ares Capital Corporation [ARCC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.88. With this latest performance, ARCC shares gained by 1.20% in over the last four-week period, additionally plugging by 5.07% over the last 6 months – not to mention a rise of 8.04% 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 59.49, with the RSI for the last a single of trading hit 59.39, and the three-weeks RSI is set at 58.81 for Ares Capital Corporation [ARCC]. The present Moving Average for the last 50 days of trading for this stock 19.83, while it was recorded at 20.36 for the last single week of trading, and 19.15 for the last 200 days.

Ares Capital Corporation [ARCC]: A deeper dive into fundamental analysis

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.

Ares Capital Corporation [ARCC]: An earnings per share (EPS) analysis

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%.

An analysis of Institutional ownership at Ares Capital Corporation [ARCC]

The top three institutional holders of ARCC stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in ARCC stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in ARCC stock with ownership which is approximately 5.8325%.