Q1 2021 Earnings Forecast for Ares Capital Co. (NASDAQ:ARCC) Issued By SunTrust Banks
Ares Capital Co. (NASDAQ:ARCC) – Equities researchers at SunTrust Banks issued their Q1 2021 earnings estimates for Ares Capital in a research report issued to clients and investors on Wednesday, February 12th. SunTrust Banks analyst M. Hughes forecasts that the investment management company will post earnings of $0.46 per share for the quarter. SunTrust Banks also issued estimates for Ares Capital’s Q2 2021 earnings at $0.46 EPS, Q3 2021 earnings at $0.46 EPS, Q4 2021 earnings at $0.47 EPS and FY2021 earnings at $1.85 EPS.
A number of other equities research analysts have also commented on the company. ValuEngine raised Ares Capital from a “sell” rating to a “hold” rating in a research report on Thursday, October 31st. BidaskClub lowered Ares Capital from a “hold” rating to a “sell” rating in a report on Tuesday, January 14th. Royal Bank of Canada assumed coverage on Ares Capital in a report on Tuesday, November 12th. They set an “outperform” rating and a $20.00 price objective for the company. Finally, Raymond James lowered Ares Capital from an “outperform” rating to a “market perform” rating in a report on Tuesday, October 22nd. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, three have given a hold rating and five have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus target price of $19.92.
Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings results on Wednesday, February 12th. The investment management company reported $0.45 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.45. Ares Capital had a net margin of 49.90% and a return on equity of 10.97%. The company had revenue of $386.00 million during the quarter, compared to the consensus estimate of $387.39 million. During the same quarter in the previous year, the company posted $0.45 earnings per share.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 8.33%. Ares Capital’s dividend payout ratio (DPR) is presently 95.24%.
In related news, Director Steven B. Mckeever purchased 3,000 shares of the stock in a transaction on Thursday, December 5th. The shares were purchased at an average cost of $18.74 per share, for a total transaction of $56,220.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.53% of the stock is owned by insiders.
Several hedge funds have recently made changes to their positions in ARCC. Signaturefd LLC raised its holdings in Ares Capital by 164.5% in the 3rd quarter. Signaturefd LLC now owns 1,645 shares of the investment management company’s stock valued at $31,000 after acquiring an additional 1,023 shares in the last quarter. Valeo Financial Advisors LLC raised its position in Ares Capital by 87.6% during the fourth quarter. Valeo Financial Advisors LLC now owns 1,726 shares of the investment management company’s stock valued at $32,000 after purchasing an additional 806 shares in the last quarter. Private Ocean LLC purchased a new stake in Ares Capital during the third quarter valued at about $35,000. FTB Advisors Inc. raised its position in Ares Capital by 106.4% during the third quarter. FTB Advisors Inc. now owns 1,940 shares of the investment management company’s stock valued at $36,000 after purchasing an additional 1,000 shares in the last quarter. Finally, Lindbrook Capital LLC raised its position in Ares Capital by 2,681.4% during the third quarter. Lindbrook Capital LLC now owns 2,698 shares of the investment management company’s stock valued at $50,000 after purchasing an additional 2,601 shares in the last quarter. Institutional investors own 35.11% of the company’s stock.
Ares Capital Company Profile
Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.
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